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Jack Smith sold Vungle to Blackstone for ~$750M in cash
Sam introduces guest Jack Smith, who founded the mobile ad company Vungle and sold it to private-equity giant Blackstone for roughly $750 million in cash, having raised very little.
$750M
Acquisition price · USD
“But basically he started this company called Vungle, which was sold to Blackstone, the large PE company, for I think $750 million in cash. They had raised a little bit of money, but not a significant amount. It was a wonderful exit.”
Fact
Powder Mountain is the largest ski resort by skiable acreage in the US
Bought by Summit in 2012 for $40-50M, Powder Mountain spans 10,000 acres and is the largest ski resort by skiable acreage in the United States — bigger than Vail — yet runs on just 7 lifts. Its first chairlift was built by a sheepherder in 1972.
“It's actually the largest ski resort by skiable acreage in the United States. And I think now Canada as well with Whistler. So it's huge. It's bigger than Vail, but it's got 7 lifts.”
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Blackstone paid ~$50M for a trade show doing only $6M revenue
Sam points out that Blackstone bought a digital-marketing trade show for nearly $50 million despite it generating only $6 million in revenue, an outlandish multiple justified by trade shows being exceptionally strong cash-flow businesses.
$50M
Acquisition price of a digital-marketing trade show · USD
“They bought one in the digital marketing space for nearly $50 million, and they only did $6 million in revenue. That's a, that's an outlandish multiple, but it's a, they're really good cash flow companies.”
Steal thisLook at trade shows as acquisition targets: recurring, high-margin cash flow earns premium multiples even on small revenue.
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Vungle's $750M Blackstone exit
Jack Smith's mobile video ad network Vungle was acquired by private equity firm Blackstone, in a deal rumored to be worth $750 million in cash.
$750M
Acquisition price · USD
“Private equity firm Blackstone is set to acquire Vungle for an undisclosed sum that is hotly rumored to be $750 million US dollars in cash.”
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Blackstone buys Vungle for a rumored $750M in cash
Jack Smith co-founded mobile ad network Vungle, which private equity firm Blackstone acquired for a price rumored to be $750 million in cash.
$750M
Acquisition price · USD
“Private equity firm Blackstone is set to acquire Vungle for an undisclosed sum that is hotly rumored to be $750 million US in cash.”