November 22, 2019
PayPal just announced the acquisition of Honey, a browser extension that helps shoppers to save money, for a whopping $4 billion. The first reaction of the tech community on social media was: “WHY?” Paying $4 billion for a browser extension that plugs in coupon codes at checkout and currently has revenue of $100 million sounds quite exorbitant. This means PayPal is paying 40X the revenue multiple for Honey! Is PayPal feeling the heat from the Internet giants expanding into payments+commerce? Is this strategic move PayPal’s hedge in the increasingly competitive landscape? Or is there more to the 4-billion-dollar bill that PayPal just paid?