Square Buys Weebly for $365 Million to Offer Websites to SMBs (+ More)
April 26, 2018 | Contributed by: Greg Sterling
Square is buying website creator Weebly. Weebly has free and paid website products. The transaction is valued at $365 million, comprised of a mix of cash and Square stock.
Square said in its press release that it will now be able to offer “one cohesive solution to start or grow an omnichannel business”:
Today, it is important that sellers can reach buyers as they move between channels (in person, online, in apps) during discovery, purchase, and even returns and exchanges. An integrated suite of services will make critical business tasks like engaging with customers, managing orders, growing sales, and making informed business decisions easier than ever for sellers.
Weebly reportedly has “millions of customers and more than 625,000 paid subscribers.” Just under half of Weebly’s paying subscriber base is outside the US. Accordingly the transaction make a lot of sense:
- It ads another revenue stream for Square and helps with international expansion
- It provides another key product in a growing marketing suite
- Weebly’s customers will access Square’s “managed payments, hardware, and software”
- Square Marketplace, a distribution channel for third party software, will also be promoted to Weebly customers
Square has reported “millions” of sellers (precise number undisclosed) and 7 million Square Cash users. In Q4 the company said it processed nearly $18 billion in gross payment volume.
This transaction is consistent with broader shifts that LSA’s Tech Adoption program is tracking in the local/SMB market, as new competitors and disruptors move in. In many ways, Square is the “poster child” for the Tech Adoption thesis. The company has broadened from its original market-entry POS product to a broad portfolio of tools and services, with an array of marketing capabilities — now including websites.
At LSA18 there will be several sessions that present Tech Adoption data and analysis, among them the New SMB Competitive Matrix workshop and: