- General
- June 14, 2019
- 4 minutes read
Bird Reportedly Acquired Scoot For Just $25 Million
A woman rides a Scoot bike in Santiago, Chile image: Scoot Some few days ago, Bird was reported to have…
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| A woman rides a Scoot bike in Santiago, Chile
image: Scoot
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Some few days ago, Bird was reported to have agreed to acquire Scoot, an on-demand scooter competitor. Bird confirmed this later on, but there’s something likely surprising about the acquisition: its price. According to the Wall Street Journal, Bird acquired the company for $25 million in cash and stock, less than half of a previous $71 million valuation (according to TechCrunch) and almost 50% less than the roughly $47 million the company had raised.
This indicates Scoot was a struggling startup prior to being acquired. The company had raised funding from investors including Ashton Kutcher’s Sound Ventures, Accel, Greycroft, Sequoia Capital, Upfront Ventures and Tusk Venture Partners. Purchasing Scoot is a lucrative way for Bird to begin operating again in San Francisco after previously being denied a permit.
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| Scoot bikes in Santiago, Chile
image: Scoot
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Scoot will continue to operate on its own as a subsidiary under Bird. In addition to SF, Scoot also operates in the cities of Barcelona, Spain and Santiago, Chile. With Scoot’s addition, Bird now stands to gain from the operations of a former competitor.
