When CoTweet sold to ExactTarget a couple weeks ago, the acquisition price was not disclosed. But an SEC filing put out today suggests that ExactTweet paid at least $8.1 million in stock for CoTweet. That is the value of “securities offered . . . as partial consideration in connection with a merger,” meaning there was likely a cash portion as well. While this isn’t a huge sum, it’s not a terrible return for an initial investment of $1.1 million.
CoTweet helps businesses manage multiple Twitter accounts and use it more effectively as marketing channel. The CoTweet acquisition is now being pointed to as an example of how businesses can be built on top of Twitter. So now we know how much the stock portion of the deal was worth.
Will we see more $8 million to $10 million deals in the near future, or do exits have to become bigger to make it worth creating a startup around Twitter?
CoTweet is a business front-end for Twitter, enabling companies to engage in proactive marketing and response-oriented customer service activities. On March 2, 2010 CoTweet was acquired by ExactTarget.
ExactTarget, Inc. is a provider of on-demand email marketing software solutions. Their suite of on-demand one-to-one marketing applications enables clients to send business-critical and event-triggered communications to increase sales, optimize marketing investments, and strengthen customer relationships. They offer four editions of their on-demand software application along with integrated solutions such as ExactTarget for AppExchange and ExactTarget for Microsoft Dynamics CRM.