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Re: Re: Who's Worth What and Why
by
AGORACOM
Hi, anonymous. Agreed that brand plays a role and that you can't value any business on the numbers alone. There are definitely situations where an acquiring company can leverage its network and revenue streams to optimize a site with fewer resources.
However, if the target company doesn't have real profits to optimize, there isn't much to leverage. All of the majors learned this lesson the hardway back in dot-bomb and won't do it again. We shouldn't allow BW to ruin 2.0 by giving the masses the impression that we are going down that path again.
This is especially true when you consider the fact there are so many companies out there that are delivering real services over the web and building businesses that customers are willing to pay for. I would rather have seen an article about 10 companies generating $1M in profit each rather than 1 company that can now afford to pay the rent.
Like my dad always said "You better decide if you're just having fun, or building a business of value. The only way to know is if cheques are arriving in the mail." Right now, Digg is just having fun and that doesn't deserve to be on the cover of BW.
Best,
George
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