Notehall Chegg forge deal after appearing on Shark Tank. The Start-Up appeared on the first season of the show. They did make a deal, and competition popped up right after the episode. The question is, how are they doing now?
I did some investigation on Note hall Chegg and this is what I came up with since the Shark Tank episode. The website is still live, it looks better than before, I think they have done some updates to the site. The news section on their website has not been updated since May of 2010. That's been a while, so either they are doing really well and aren't spending time marketing online or they aren't doing as well as they thought? We'll do more investigation to find out.
According to the Notehall Chegg site, college students have earned $969,000.00 from selling text books online. That means that the company which takes 50% of the sales has brought in less than two million dollars in gross revenues. Depending on their costs, this doesn't seem like that much. These guys certainly aren't hitting the home run investors would like to see.
Notehall Chegg March Into Foreign Markets
As I did further investigation, it seems that Chegg, a company competing with Notehall acquired them in June. Evidently, they say they don't see the marketplace as a growth market, so buying up the competition gives them the market share that they need.
Sometimes small businesses like Notehall have a great foundation but don't have the growth potential and get acquired just like much larger corporations do.
It would be great if Shark Tank would go back and check Notehall showing that in some cases, you are able to have your business acquired by your competition either coming out well, or bailing out depending on each situation.
Notehall was also able to start building a foreign market which Chegg also bought.
Did the Notehall founders get out at the right time? I think so.