3 ms·
They valued Ars Technica at $15 million, it sold for a rumored $25 million. That's not "very near" the predicted valuation.
by mrkurt 18y ago
They valued Ars Technica at $15 million, it sold for a rumored $25 million. That's not "very near" the predicted valuation.
- lionhearted 18y agoThe question of "what is something worth?" is answered with, "Whatever the highest bidder is willing to pay." Anyone who follows the economics of sports can show you that some contracts are absolutely ridiculous, and a team totally overbid. Likewise, sometimes really solid players get signed quite cheap. So it goes with acquisitions too: Sometimes an acquirer falls in love with a company or sees value they can add quickly and pays way more than people would expect. Sometimes a company needs to sell now and sells at a bargain. It can still be worthwhile to try to peg values on companies, but final sale prices usually will differ greatly.
- mrkurt 18y agoI don't disagree, but they cite the two sales from last year as validation of their numbers. The thing is, Ars sold for ~$25 million (vs a $15million valuation). I just looked up the PaidContent.org sale, and it looks like it sold for $30 million vs their $3.5 million valuation. Neither of those make them sound very credible. :)