More TellMe Info

A bit more info on Microsoft's pending acquisition of voice application company Tellme: The final sale price will be just a hair below $800 million, and a number of the later-stage investors will basically some out break-even. Earlier backers like Barksdale Group, Benchmark Capital and Kleiner Perkins will make a decent cash-on-cash return, but nowhere near a grand slam like the sale price would typically indicate. Three basic explanations: (1) VCs pumped over $260 million into Tellme; (2) They did so at bubble-era inflated valuations and (3) The last VC infusion came in late 2000, which means that it's been carried on the books for at least six years.