Jason M. LemkinCEO, SaaStr · Co-Founder of SaaStr AI, SaaStr Fund, Adobe Sign

M&A Shock: Who's Selling? SaaS Ain't Dead! #shorts

7 Feb 2026 · 1 min

Watch on YouTube

0:57

In this brief YouTube short, the hosts discuss a surprising wave of M&A activity in the SaaS sector. Speaker A notes that many high‑valuation SaaS companies—some worth far more than the acquirers—are now on the market, even being bought by firms with only a fraction of their revenue. He mentions that several VC‑backed firms (including ones that have raised from 20 venture capital firms) are aggressively seeking exits, though specific names like Databricks were only hinted at. Speaker B celebrates large IPOs and multi‑billion‑dollar exits, expressing admiration and a wish that his own portfolio could achieve similar outcomes. The segment closes with Speaker C giving a hat tip to Salesforce CEO Marc Benioff for landing a $5.6 billion, ten‑year contract with the U.S. Army, underscoring the continued strength and relevance of SaaS despite broader AI hype.

Chapters

Not. Not an open evidence. And we did an M and A review a little while.
Ago, and I was shocked. Who's on the block?
I mean, everyone's for sale. And I was shocked that folks worth less. I mean, worth more, much more, are willing to be acquired by someone with a fraction of their revenue. And these are some. These are. I didn't see data bricks, the ones that were passed around the room virtually, but I was shocked of folks that have been on 20 VC that I did not know were in market that are aggressively looking for an exit. Right. Which.
Is why when you see people pull off an IPO or pull off a fricking $5 billion exit, the correct response is, yay, well done. And then B, God damn, I wish some of my guys could do that. That'd be great. It's a great outcome, right?
Yeah. You know what? If we're going to end, I do think the hat tip deserves to be given to our friend of the show, Mr. Mark Benioff, who, Army just awarded Salesforce.
A.
$5.6 billion contract over 10 years. Like, Mr. Benioff, hat tip, well done.
Totally. Yeah. Yeah. Software. SaaS is not dead. And now SAS has an army. I love it. SaaS has the army. Yeah. Take that, Take that. Doubt us. No. And it was. First of all, you're exactly right. Great outcome. And someone, some sales rep in Salesforce is getting the mot of all commissions here and good luck to them. But I also think it speaks to the whole zeitgeist of AI is going to eat everything. And I think the correct pushback has been. I think. And you mentioned the avenue. The people have been saying all these systems of record like cell phones are going to get replaced. Yeah.