SaaStr · 2021-02-24 · 1925d

Competitor Acquisitions by Big Tech Don't Kill Your Business—They Just Mean You Weren't Chosen

When large technology companies acquire competitors, entrepreneurs often panic unnecessarily. However, empirical evidence from SaaS shows that acquisitions rarely kill competing products and often grow the market instead. The real takeaway: if a big tech company acquires your competitor, you're likely off their acquisition list, but you can treat it as if they just raised $20-40M in venture capital.

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Metrics in this report

ARR Threshold for Business Resilience

30-40$M

minimum

Enterprise SaaS applications becoming nearly impossible to kill

Klaviyo Post-Acquisition Valuation

4$B

minimum

Klaviyo's valuation shortly after Shopify launched competing email product

Oracle Eloqua Acquisition Price

1$B

exact

Acquisition price for marketing automation platform

Post-Acquisition Capital Allocation

20-40$M

typical

Additional capital acquirers allocate to acquired competitor products