I’ve seen a good deal of crazy valuations and market activity to boost share holder wealth, but sometimes you should just choose the maintenance increase. Ultimately it appears ZL tech doesn’t realize that not all revenue generation ideas or exit strategies should be prioritized solely by the top line opportunity value. I mean the return on investment is pretty straightforward and simple: legal fees under say a million and a crazy $1.696B top line.
I can see the retort when question on the top line estimate:
Even after negotiations it is still a $600M pay day. Add in some contingency legal fees and the net is like $400 or like a gabillion times more than current revenues.
So while ZL clearly admits a short coming in marketing, which is the reason they aren’t leaders, thus the law suite, they might want to spend some time reflecting on the Ability to Execute concept when this is all over.
Below is a simple overview how marketing and branding just might influence a given organization’s placement in any given magic quadrant.