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Dropbox: The company everyone wants to kill


 


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 9 months ago '17        #1
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Enigmatic1 342 heat pts342
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Dropbox: The company everyone wants to k!ll
 

 
Not long after Dropbox launched, Apple threatened to k!ll it.

Steve Jobs summoned Dropbox CEO Drew Houston for a 15-minute meeting at Apple's headquarters in 2009 to discuss buying the cloud storage startup. But Houston wasn't interested in selling.

As Houston later recalled in one interview, Jobs began "taunting a little bit: 'Look, we're gonna have to come after you.' " In 2011, Apple did just that with the launch of iCloud.

Yet, Dropbox is still here. And nearly a decade after that ominous meeting, Dropbox is on the cusp of having one of the largest tech IPOs in recent years. It is looking to raise $648 million at a valuation of about $7.4 billion, according to a filing Monday.

When it does go public, Wall Street will have to adjust to a reality that Dropbox insiders have long contended with: Nearly every big tech company wants to k!ll it.

Apple (AAPL), Google (GOOGL), Microsoft (MSFT) and Amazon (AMZN) have all launched rival services for storing documents, photos and other files online. In its IPO paperwork, Dropbox said it only expects the "competition to intensify in the future."

The fierce competition is "definitely part of the noise you're always going to have," says Aaron Levie, CEO of Box (BOX), a similar service to Dropbox that focuses on business customers and went public in 2015. "Neither of us signed up for that necessarily. We created our companies before those other players [launched rival products]."

Houston, 35, has managed to weather that pressure to date by virtue of being a "very chill dude," according to Hadi Partovi, an early investor in Dropbox.

"Many others might be stressed out by having companies with a collective market cap of many trillion dollars competing with him," Partovi says. "Drew has always had a steady hand."

Not all investors are so chill about the growing number of rival services.

"Now, you don't need to go to Dropbox to do all the functions that they have," says Santosh Rao, who tracks Dropbox as head of research at Manhattan Venture Partners. "You can live without Dropbox."

That doesn't mean Dropbox is doomed, but Rao says the company's opportunity may be closer to Twitter (TWTR) than Facebook (FB). "It doesn't have the mass appeal of a Facebook, but I think in a niche market, it has its presence," he says.

Dropbox topped $1 billion in sales for the first time last year, and has worked to trim its losses by cutting costs, including certain office perks. But the company still lost more than $100 million in 2017.

By tech standards, though, those numbers aren't so bad. Unlike Snapchat (SNAP), Dropbox's losses aren't growing ahead of its IPO. And unlike Blue Apron (APRN), there's no new threat from a tech giant like Amazon at the last minute before it goes public.

What's more, analysts say Dropbox's $7 billion valuation is reasonable, certainly more so than the $10 billion valuation it had on the private market back in 2014.

"At first glance, it doesn't look like a train wreck," says Matt Kennedy, an analyst at Renaissance Capital, which manages IPO-focused exchange-traded funds. "It's not viewed as another Snap or another Blue Apron or some of the other consumer tech IPOs that haven't done so well."

But there may be more at stake with this IPO than the future of Dropbox. More blockbuster tech IPOs like Lyft, Uber and Airbnb are thought to be coming in the next couple years. Spotify recently filed to go public.

The Dropbox IPO, Kennedy says, "will set the tone."

44 comments for "Dropbox: The company everyone wants to kill"

Top 10 most propped recently  9 months ago '06        #2
new2hiphop 2 heat pts
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 9 months ago '04        #3
mr_underground|m 2112 heat pts2112
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i wouldn't buy it. i have dropbox but i use my onedrive, icloud and google drive way more. its easy to create your own cloud storage now. not sure whats left to innovate here.

 9 months ago '05        #4
QualityRecords 12 heat pts12
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I think Amazon is about to get into cloud storage very heavily.

 9 months ago '05        #5
reasonable 13 heat pts13
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got 3 and half years of vested pre ipo stock ready to be sold once they officially go public

 9 months ago '12        #6
Mickey Bricks 118 heat pts118
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Blockchain is going to wash Dropbox (Sia, IPFS/FileCoin, StorJ, etc)...they better grab that $ while they still can


Last edited by Mickey Bricks; 03-13-2018 at 03:30 AM..

 9 months ago '09        #7
TriniSoldier 71 heat pts71
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many have tried, and all have failed. dropbox aint going nowhere

 9 months ago '16        #8
00010111 92 heat pts92
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Haven't used Dropbox in at least 5 years.

 9 months ago '17        #9
bxivz 
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I used to have Dropbox then I bought the Lima I keep my files at home on my own external drive. I believe its more convenient. I can access like if it was a cloud when ever i want. Not have to pay for services.

 9 months ago '14        #10
CEITEDMOFO 476 heat pts476
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I DONT USE ANY OF THAT sh*t

 9 months ago '07        #11
ptwist 50 heat pts50
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 TriniSoldier said
many have tried, and all have failed. dropbox aint going nowhere
"Dropbox me the files" is about in the same realm as "I'll Venmo/Paypal you"

It's more neutral than icloud and google drive which supports their obvious brands.

Thing is, normal consumers still find it tough having to pay for DB to get their premium features. Small business pros like wedding photographers, videographers etc. love it though and if they can keep growing that sector and still find ways to casuals to hop on they'll improve on their losses.

 9 months ago '04        #12
BigJay.inc 73 heat pts73
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Dropbox is for casuals. Box went enterprise on em. I would have done more for business in my opinion if I were Dropbox.

At my office we use Box as there are so many integration opportunities.

Dropbox will still do ok though.

 9 months ago '16        #13
DizAznLuvPho 34 heat pts34
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 Mickey Bricks said
Blockchain is going to wash Dropbox (Sia, IPFS/FileCoin, StorJ, etc)...they better grab that $ while they still can
I'm invested in Sia coins. That will definitely take off.

 9 months ago '15        #14
Kden 59 heat pts59
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Dropbox banned from my company cuz of its vulnerabilities




Granted all cloud services are vulnerable

 9 months ago '16        #15
KWizzle 1 heat pts
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I still use dropbox for my music

 9 months ago '04        #16
RIAA 30 heat pts30
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The consulting company I work for has a Dropbox for Business account and we all love it.

 9 months ago '12        #17
BrokenSafety 40 heat pts40
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I use OneDrive

 9 months ago '17        #18
arms 17 heat pts17
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Decentralized cloud services will k!ll dropbox

 9 months ago '04        #19
Tha754kid 1 heat pts
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I fukk with Dropbox heavy

 9 months ago '17        #20
Hater 13 heat pts13
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 CEITEDMOFO said
I DONT USE ANY OF THAT sh*t
if you have android or ios, I'm pretty sure you're using some form of it.

- Is your contacts backed up aka, when you upgrade your phone you don't need to input all contact in manually by hand? if the answer is yes, then you're using cloud based services.

- Is your bookmarks crossed synced between devices?
if yes, then you're using cloud based services.

we all use cloud based services, unless you have a burner phone for drug deals :jtlol:

 9 months ago '17        #21
Hater 13 heat pts13
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 arms said
Decentralized cloud services will k!ll dropbox
no time soon.

 9 months ago '06        #22
dredman 3 heat pts
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Dropbox should offer their free tier of 100GB with the caveat of 100MB links and lower. Then if you want to have a bigger size limit, you gotta pay a monthly fee. It's the only way I see them surviving with Amazon and Google. Amazon will scale their cloud services a little more than Dropbox to k!ll them off once they go public.

 9 months ago '12        #23
Ragobeer 54 heat pts54
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Anyone know the day the IPO goes live? Probably gonna do a quick scalp on IPO day.

 9 months ago '04        #24
focused313 3 heat pts
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What is the difference between "the cloud" and any hosting service prior to industry creating this terminology? Everything is still hosted on a hard drive, somewhere, right? Excuse my ignorance and for me not just researching this before posting it.

 9 months ago '04        #25
AliHood 4 heat pts
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 ptwist said
"Dropbox me the files" is about in the same realm as "I'll Venmo/Paypal you"

It's more neutral than icloud and google drive which supports their obvious brands.

Thing is, normal consumers still find it tough having to pay for DB to get their premium features. Small business pros like wedding photographers, videographers etc. love it though and if they can keep growing that sector and still find ways to casuals to hop on they'll improve on their losses.
Yea i have a 10 disk synology nas and still cant let my DB subscription go

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