3 ms·

>1. It is pointless to compare total company value with an annual payment. Mozilla being an exception, I suppose?

• asadotzler 3y ago
  Mozilla has a billion in the bank and half a billion annual revenue with a 19 year track record on that contract. They spend most of that revenue each year, but any that's left over finds its way into the bank growing that sum. I'd wager Mozilla is worth considerably more than a single year of revenue if that's what you were suggesting. At a minimum they're worth their cash on hand, and some multiple of that revenue, perhaps 10x or even 20x so that would put Mozilla's company value at least around $6B, and I'd expect the Mozilla Foundation could easily get that kind of money for MoCo+Firefox if it decided to sell. Mozilla doesn't have growth, but it's got regular and significant income and has had that for longer than most of today's SV companies earning similar amounts.
  • tyingq 3y ago
    I'm not suggesting they are worth a single year of revenue. But 80+% of their revenue, and probably the highest margin bit of revenue, comes from that Google payment. So whatever their value is, hinges on that contract payment. Thus, the multiple is interesting....where you might "compare total company value with an annual payment" to see what that mathematical relationship is. Especially given their rapidly declining market share.