Update: TechCrunch is reporting this is not a done deal. The two sides are just in early stage discussions.
After writing how puzzling it is for a venture-backed startup to get acquired within months of its financing for a relatively small multiple of the pre-money valuation, a deal comes around that makes more sense.
Yahoo is acquiring MyBlogLog for a reported $10 million. MyBlogLog never raised venture capital funding, making it a nice payday for co-founders Scott Rafer, Todd Sampson and Eric Marcoullier.
The deal is the latest example of the new "dual track", which occurs when a startup weighs raising venture capital against acquisition offers. MyBlogLog was reportedly considering raising a first round of venture capital when Yahoo swooped in.
Rafer, MyBlogLog's CEO, is an entrepreneurial guy involved in a number of side projects when he's not running MyBlogLog. Prior to co-founding MyBlogLog, he was CEO of blog search engine Feedster. I interviewed him about his work there last summer. Watch the video below:
Tags: mybloglog, m&a, scott+rafer, yahoo, yhoo, vc, venture capital
Continue reading below
