New Relic agrees to $6.5 billion buyout amidst job cuts
2023 has seen a series of significant layoffs, leaving thousands of workers unemployed across various companies, including tech giants like Google, Amazon, Microsoft, Yahoo, Meta, and Zoom. Startups have also not been spared from this wave of job reductions, impacting sectors ranging from cryptocurrency to enterprise SaaS.
Among these companies, New Relic, a 15-year-old software firm headquartered in downtown San Francisco, has been grappling with its own set of challenges, facing not only layoffs but also financial losses.
New Relic announces $6.5 billion buyout and layoffs
Amidst the layoffs, New Relic has made headlines with a massive $6.5 billion buyout agreement. The deal, orchestrated by two local private equity firms, Francisco Partners and TPG, comes just over a month after the company announced a significant workforce reduction of more than 200 employees.
This move follows New Relic's quarterly financial results, which showed increased revenue but a loss of over $33 million from April to June.
Major players in tech investment are on the case
The private equity firms involved in the buyout, Francisco Partners and TPG, are both based in San Francisco and have extensive experience in the tech sector.
Francisco Partners has previously invested in tech startups like Zocdoc, Eventbrite, and GoodRX, while TPG boasts an impressive portfolio including investments in Airbnb, Spotify, and Uber.
Although New Relic is not currently profitable, its consistent growth, combined with the recent job cuts, might have appealed to the investment giants. The buyout is expected to be finalized later this year or early next year and would see New Relic shareholders receiving $87 per share.
Notably, the company's founder, Lew Cirne, still holds 10% ownership of the firm, and under the buyout deal, he will roll over 40% of his shares into the private firm.
New Relic exits the public market
The acquisition will take New Relic off the public markets and make it a private company. However, the company has a 45-day window to explore other offers before the deal is finalized. Despite the ownership change, CEO Bill Staples assures customers that the company's strategy, identity, and business operations will remain unchanged.
The term layoff is a norm in the business world following the pandemic
New Relic's layoffs are just a part of a much broader trend in the tech industry. Layoffs in the tech sector have already surpassed the total number of tech job cuts in the previous year, with a running total of 201,860 layoffs recorded to date in 2023.
Several major companies, including Microsoft, have announced additional job cuts this year, citing the macroeconomic environment and the need to achieve profitability as the driving forces behind these workforce reductions.
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Martin, I would appreciate that you do not censor this post, as it’s informative writing.
Onur, there is a misleading statement “[…] GIFs are animated images …”. No, obviously you don’t seem to have take much notice of what you were told back in March regarding; Graphics Interchange Format (GIF).
For example, https://www.ghacks.net/2023/03/31/whats-gif-explanation-and-how-to-use-it/#comment-4562919 (if you had read my replies within that thread, you might have learnt something useful). I even mentioned, “GIF intrinsically supports animated images (GIF89a)”.
You linked to said article, [Related: …] within this article, but have somehow failed to take onboard what support you were given by several more knowledgeable people.
If you used AI to help write this article, it has failed miserably.
AI is stupid, and it will not get any better if we really know how this all works. Prove me wrong.. https://www.youtube.com/watch?v=4IYl1sTIOHI
Martin, [#comment-4569908] is only meant to be in: [https://www.ghacks.net/2023/07/09/how-to-send-gifs-on-iphone-two-different-ways/]. Whereas it appears duplicated in several recent random low-quality non relevant articles.
Obviously it [#comment-4569908] was posted: 9 July 2023. Long before this thread even existed… your database is falling over. Those comments are supposed to have unique ID values. It shouldn’t be possible to duplicate the post ID, if the database had referential integrity.
Don’t tell me!
Ghacks wants the state to step in for STATE-MANDATED associations to save jobs!!!
Bring in the dictatorship!!!
And screw Rreedom of Association – too radical for Ghacks maybe
GateKeeper ?
That’s called “appointing” businesses to do the state’s dirty work!!!!!
But the article says itself that those appointed were not happy – implying they had not choice!!!!!!
@The Dark Lady,
@KeZa,
@Database failure,
@Howard Pearce,
@Howard Allan Pearce,
Note: I replaced the quoted URI scheme: https:// with “>>” and posted.
The current ghacks.net is owned by “Softonic International S.A.” (sold by Martin in October 2019), and due to the fate of M&A, ghacks.net has changed in quality.
>> ghacks.net/2023/09/02/microsoft-is-removing-wordpad-from-windows/#comment-4573130
Many Authors of bloggers and advertisers certified by Softonic have joined the site, and the site is full of articles aimed at advertising and clickbait.
>> ghacks.net/2023/08/31/in-windows-11-the-line-between-legitimate-and-adware-becomes-increasingly-blurred/#comment-4573117
As it stands, except for articles by Martin Brinkmann, Mike Turcotte, and Ashwin, they are low quality, unhelpful, and even vicious. It is better not to read those articles.
How to display only articles by a specific author:
Added line to My filters in uBlock Origin: ghacks.net##.hentry,.home-posts,.home-category-post:not(:has-text(/Martin Brinkmann|Mike Turcotte|Ashwin/))
>> ghacks.net/2023/09/01/windows-11-development-overview-of-the-august-2023-changes/#comment-4573033
By the way, if you use an RSS reader, you can track exactly where your comments are (I’m an iPad user, so I use “Feedly Classic”, but for Windows I prefer the desktop app “RSS Guard”).
RSS Guard: Feed reader which supports RSS/ATOM/JSON and many web-based feed services.
>> github.com/martinrotter/rssguard#readme
We all live in digital surveillance glass houses under scrutiny of evil people because of people like Musk. It’s only fair that he takes his turn.
“Operating systems will be required to let the user choose the browser, virtual assistant and search engine of their choice. Microsoft cannot force users to use Bing or Edge. Apple will have to open up its iOS operating system to allow third-party app stores, aka allow sideloading of apps. Google, on the other hand, will need to provide users with the ability to uninstall preloaded apps (bloatware) from Android devices. Online services will need to allow users to unsubscribe from their platform easily. Gatekeepers need to provide interoperability with third-parties that offer similar services.”
Wonderful ! Let’s hope they’ll comply with that law more than they are doing with the GDPR.