I can't help thinking Segment had much more room to run though...everyone I know who uses them loves them, and they were still only just scratching the surface of the addressable market.
This is not surprising. The personalized SMS/push notification use cases (for which you need Segment data) are commonly implemented via marketing platforms (like Braze etc) as opposed to directly via Twillio.
I think this was the other way around. Twillio is powering a lot of these new age marketing automation tools. Instead of just being at the infrastructure layer, it wants to go up the stack and own the marketing applications. Sendgrid and now Segment acqusitions are part of the same strategy.
They did the same thing for the contact center (call center) software space. Lot of the cloud contact center companies were using Twillio and now they launched their own contact center product. That has been one of the key drivers in their 3x increase in valuation in the last 1 yr.
Segment's partners like Braze etc should be worried.
At least Twilio buys Segment, not just copies it I guess..
There’s also Vero and Iterable that I’ve used. Iterable was pretty terrible and we ended up replacing it with in house tooling, Vero has been really great and we’re investing more in our Vero setup.
I swear there's some law for these sorts of things where they inevitably end up as a marketing automation platform.
Usually board will look to make changes, replace founder CEO and if that doesn’t work then push for a sale.
Very smart acquisition for Twilio though.
Going public, despite profits made, really sucks the soul out of a company.
Twilio and Segment’s visions align pretty well so I think that played a role as well. Outside of golden handcuffs, a large portion of their employees are liquid immediately as opposed to an IPO with a 6-12 month lockup for employees plus the rise/fall of a stock price during that time.
All in all, I think they made the right choice to sell instead of going for an IPO.
Can you explain what this means. Why does the first part of the sentence imply the second?