economy
Domo sells its main businesses for $400 million, leaving founder Josh James with a hoard of cash to put to work
Progress Software agreed to buy Domo's AI and data business for $400 million. Domo founder Josh James will run the remaining debt-free entity.
TL;DR
- Progress Software is acquiring Domo's AI and data business for $400 million.
- The deal includes almost all of Domo's operations and employees.
- Domo founder Josh James will lead the remaining separate, publicly listed company.
- The remaining entity holds $246 million in cash and over $900 million in net operating loss (NOL) carryforwards.
- NOLs allow companies to use past losses to reduce future tax liabilities.
- Domo's growth has slowed due to increased competition from AI tools.
- Domo shares rose approximately 30% following the announcements.