Blackboard to Buy Rival Angel Learning for $95 million
washingtonpost.com
washingtonpost.com
I'm not an expert on the markets, but one thing that has amazed me is that Blackboard has maintained a P/E ratio in the hundreds for quite some time. Today, BBBB's P/E ratio is 367: http://www.google.com/finance?q=NASDAQ%3ABBBB Seriously. Three-hundred-sixty-seven. Am I missing something? Are they really set up for that much growth, especially with a product like that?
I still think there's a ton of room for new startups in this space–these companies (Angel and BB) are still, as far as I know, very mired in old/web1.0 technologies and methodologies.
The biggest problem is the sales cycle in education is painfully long. It takes months to get a deal started, approved and then paid.
I'm not sure if the solution is to go with a cheaper SaaS solution that requires less approval, but I definitely hope to see some YC companies in this space soon (I have an idea for one but no time at the moment).
From what I've seen in the news and discussions on e-learning, the biggest problem facing startups is being sued by blackboard
http://www.pbs.org/teachers/learning.now/2006/08/blackboard_...
just for fun:
http://www.google.com/search?q=blackboard+patent+suits.
Please show me otherwise if I'm wrong.
Does YC consider things like potential patent litigation when choosing startups? Have they ever faced issues like this after funding a startup?
At least, that's what he said to me and my co-applicant to explain our rejection in the first YC round back in the day. Perhaps he was just being nice, though.
This is definitely validation that they should continue to work on their idea!
Blackboard's #6,988,138 patent has begun the process of being overturned by the PTO (not yet finalized), but they have a revised patent #7,493,396.
I agree with buugs: Blackboard has been suing left and right - they even tried to sue the PTO.