Venrock's Pakman Talks Dollar Shave Club and Unilever (UL) Marriage on CNBC

Unilever (UL) has purchased Dollar Shave Club for a reported $1 billion and Venrock's David Pakman, one of the company's largest investor, joined CNBC's 'Power Lunch' to discuss the deal.
By Giovanni Bruno ,

NEW YORK (TheStreet) -- Unilever (UL) - Get Report , a consumer products manufacturer co-headquartered in Rotterdam, Netherlands and London, announced it is purchasing Dollar Shave Club today.

Unilever is acquiring Dollar Shave Club for $1 billion, CNBC's Brian Sullivan reported today on "Power Lunch."

Venture Capitalist David Pakman with Venrock, one of Dollar Shave Club's biggest investors, joined "Power Lunch" this afternoon to discuss the transaction and its implications.

"This is a great outcome, I invested very early in the company, in 2012. I said this guy is a genius marketer," Pakman said, referring to the viral advertisement videos which helped to launch the company into a mainstream product line.

"Subscription businesses with really low churn, high loyalty, in large markets can be a great. They have the lowest churn, monthly, in any consumer products business," Pakman noted.

In fact, Dollar Shave Club, in terms of churn per monthly subscriber is well under 10%, and rivals that of cable, and mobile phones.

"What was really going on here all of our attention has shifted to mobile phones and social networks that's where all the conversation is. This is a company that created new media products, and advertising that reached consumers in a conversational way," Pakman said, admiring the company's achievements at relatively low cost.

Finally, in terms of the potential impact, or harm that a once private business might come to expect from being bought by a larger consumer products manufacturer like Unilever, Pakman relayed continued calm, and assurance.

"Unilever is really good at buying other companies, they won't tell them what to do, but you know have the resources of Unilever to propel you," Pakman concluded. 

Shares of Unilever are lower by 0.04% to $46.96 Wednesday afternoon.

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