dMarc Founders Leave Google, Complain About Kool-Aid Taste

Apparently not everyone likes the Google Kool-Aid: The two founders of dMarc, a radio ad insertion company acquired by Google almost a year ago for $102-million, have left the company.

The gist is apparently that they didn’t like Google’s automated, no-service approach, and there had apparently been growing tension between them and the company that bought them. The dMarc folks wanted more salespeople, and Google didn’t, and that led to lower than expected revenue growth, and general dissatisfaction all around.

So much for people who thought dMarc was going to be a surprise kicker to Google earnings this year. Ain’t gonna happen.

[via MediaPost]

Related posts:

  1. Google Radio
  2. The Google Guidance Myth, Part II
  3. Barron’s Rips Google a New One
  4. Microsoft Girds for Google
  5. Google Q1 Comment: CapEx Line

Comments

  1. Don Dodge says:

    Paul, This is very curious. I thought the Dmarc guys had an earn-out that could have paid them well over $100M, over and above the purchase price?
    OK, I just did a search and found this statement form the Google press release.
    Under the terms of the merger agreement, Google will acquire all of the outstanding equity interests in dMarc, a privately held company, for total up-front consideration of $102 million in cash. In addition, Google will be obligated to make additional contingent cash payments from time to time if certain product integration, net revenue and advertising inventory targets are met over the next three years. The maximum amount of potential contingent payments is $1.136 billion over the next three years. Since these contingent payments are based on the achievement of performance targets, actual payments may be substantially lower.
    I’m sure they were upset if they couldn’t get the sales people they needed to meet the required revenue metrics so that they could get their earn-out.
    I doubt these guys would walk away form that kind of pay day without a fight. This story may not be over.
    Don