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  • commented 4 months ago
  • tags: LNKD FB TWTR
  • The valuation seems harsh, but feasible. As in the Internet Bubble of 99/00,prices have leapt ahead of realistic levels, but the attempt by Facebook to become a viable rival to Google is interesting. They have made a brave move in the very full pricing for WhatsApp. It is going to come down to two factors; firstly, getting good returns from outside North America, particularly in Asia and LatAm, and secondly, the flood of new, focused rival products that will get financing based raised estimates after the WhatsApp shock number.
    My guess? Facebook did the right thing in this acquisition in that they were going down without it, but they need to look at the whole payment process for managing all parts of a sale, (as against pure ad revenue) which is where the moneymen come in to assess value. The constant arrival of new content trends for the young is going to make for many gambles by the large companies - at inflated prices - and the only way to create the asset value is to monetize the whole flow. [ less... ]
    The valuation seems harsh, but feasible. As in the Internet Bubble of 99/00,prices have leapt ahead of realistic levels, but the attempt by Facebook to become a viable rival to Google is interesting. They have made a brave move in the very full pricing for WhatsApp. It is going to come down to two factors; firstly, getting good returns from outside North America, particularly in Asia and LatAm, and secondly, the flood of new, focused rival products that will get financing based raised estimates after the WhatsApp shock number. My guess? Facebook did the right thing in this acquisition in that they were going down without it, but they need to look at the whole payment process for managing all parts of a sale, (as against pure ad revenue) which is where the moneymen come in to assess value. The constant arrival of new content trends for the young is going to make for many gambles by the large companies - at inflated prices - and the only way to create the asset value is to monetize the whole flow.
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