      SaaStr · 2012-12-21
      · 4912d
    

BATNA Strategy in SaaS Negotiations: Lessons from Oracle's $811M Eloqua Acquisition

Jason Lemkin analyzes Oracle's $811 million acquisition of Eloqua shortly after its IPO, arguing that the IPO served as a BATNA (Best Alternative to a Negotiated Agreement) when pre-IPO offers fell short. The article explores how SaaS founders should apply BATNA principles to various negotiation scenarios, from customer discounts to channel partnerships and acquisition offers.

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Metrics in this report

Eloqua Acquisition Price

811$M

actual

Oracle's acquisition of Eloqua marketing automation platform

Post-IPO Price Premium

25-35%

range

Acquisition price premium over IPO trading price

Pre-IPO Acquisition Offer Range

<500$M

estimated

Hypothetical pre-IPO acquisition offers for Eloqua

Standard Deal Referral Commission

20%

typical

Commission offered to channel partners for deals brought to company