Hootsuite, the popular social media management platform is actively looking for buyers, Reuters reports.
Hootsuite is working with investment bank Goldman Sachs Group Inc on a scheme which will allow the company to change hands, while giving its investors a hefty exit.
Hootsuite is headquartered in Vancouver, Canada and was founded by Ryan Holmes in 2008. It is the social media management platform of choice of 15 million users in 175 countries worldwide. It employs around 1,000 staff members in 13 locations and reports yearly revenues of $150 million.
The company has also held several funding rounds, starting in 2009 when it received 1.9 million from Hearst Interactive Media, Blumberg Capital, and angel investors Leo Group LLC and Geoff Entress. The last round took place back in March when Hootsuite raised $50 million from CIBC Innovation Banking.
The company is circling around an asking price of $750 million. Some may argue that this is way too much for a company which has held so many funding rounds and is ‘only’ making a fraction of the price tag. However, Hootsuite sits on an abundance of information and data generated by its users, including types of content, posting hours, click through rates for some of the biggest companies in the world, all accumulated over the course of more than 10 years. At this point, we may all agree that we can’t put a price tag on that.
It is also a good time for its investors to make an exit and for the product to pivot. Facebook, along with other platforms, is aggressively restricting access to its API, in light of the constant data leaks and alleged election meddling.
So, without further ado, it’s time to ask: Do we have any takers?