The founder of Honey no longer owns Honey, and hasn’t for some time. It’s owned by PayPal, a much more notoriously shady company that some people still use for some reason.
Depends when all of that functionality was added in. Honey started as a legit coupon scraping extension back in 2012, and was sold to PayPal in 2020. Somewhere in the last 12 years, someone got a bit too greedy.
Reminds me of the story of AdBlock - helpful extension gets a huge market share, people get greedy, it gets sold to a for-profit, and starts doing shady deals with the people it’s supposed to be “working against”.
Um, PayPal paid $4,000,000,000 to buy Honey. $4 billion. Now, think about how much profit Honey would have had to been generating for PP to look at the numbers and buy it for that much. However it “started”, the functionality to steal was in there before they sold it to PayPal
Companies that aren’t profitable get bought all the time for ridiculous amounts of money not because they currently make boatloads of money, but because they have a huge userbase and brand recognition, and the buyer thinks they are the geniuses that can make it do that. Yahoo paid 1.1 billion for Tumblr - since sold to wordpress for 3 million - and Musk 44 billion for Twitter - now worth a fraction of that - for example.
That is exactly why they often go to shit only after they have been bought.
Fwiw, Honey did around $100 million in revenue back in 2018. That’s 40 times less than what they were bought for, and that isn’t even profit, but just how much money they received before all their business expenses were paid.
Did you seriously cite a Medium article? C’mon now, it’s an open blog where anyone can write anything without any fact checking. Ir’s worse than Wikipedia.
According to a tech crunch article, “As of today, Honey’s 17 million members have saved more than $2 billion to date.”
The founder of Honey no longer owns Honey, and hasn’t for some time. It’s owned by PayPal, a much more notoriously shady company that some people still use for some reason.
The founder still made it do what it does.
Depends when all of that functionality was added in. Honey started as a legit coupon scraping extension back in 2012, and was sold to PayPal in 2020. Somewhere in the last 12 years, someone got a bit too greedy.
Reminds me of the story of AdBlock - helpful extension gets a huge market share, people get greedy, it gets sold to a for-profit, and starts doing shady deals with the people it’s supposed to be “working against”.
Um, PayPal paid $4,000,000,000 to buy Honey. $4 billion. Now, think about how much profit Honey would have had to been generating for PP to look at the numbers and buy it for that much. However it “started”, the functionality to steal was in there before they sold it to PayPal
Companies that aren’t profitable get bought all the time for ridiculous amounts of money not because they currently make boatloads of money, but because they have a huge userbase and brand recognition, and the buyer thinks they are the geniuses that can make it do that. Yahoo paid 1.1 billion for Tumblr - since sold to wordpress for 3 million - and Musk 44 billion for Twitter - now worth a fraction of that - for example.
That is exactly why they often go to shit only after they have been bought.
Fwiw, Honey did around $100 million in revenue back in 2018. That’s 40 times less than what they were bought for, and that isn’t even profit, but just how much money they received before all their business expenses were paid.
Did you seriously cite a Medium article? C’mon now, it’s an open blog where anyone can write anything without any fact checking. Ir’s worse than Wikipedia.
According to a tech crunch article, “As of today, Honey’s 17 million members have saved more than $2 billion to date.”
That translates to a lot of transactions.
https://www.latimes.com/business/technology/story/2019-11-20/paypal-is-buying-price-compare-tool-honey-for-4-billion
https://fortune.com/2019/11/21/paypal-honey-acquisition-worth-4-billion/
https://uniquebusinessmodels.substack.com/p/33-how-does-honey-acq-by-paypal-for
Those better sources for you?