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I think Twitter handled the issue of being bought with 80% Facebook stock very well. After all, how does Facebook even determine their own value? They have re
by djahng 18y ago
I think Twitter handled the issue of being bought with 80% Facebook stock very well. After all, how does Facebook even determine their own value? They have revenues, but not enough to justify a valuation as high as $9 billion. Facebook probably bases that valuation on the marketability of their user base. But how do you place a dollar amount on a number of users?
- Devilboy 18y agoI believe that marketing firms have some sort of price gauge per person depending on how much information you have on each person (and other factors)
- jupiter 18y agoSame question applies to the valuation of Twitter. What's even more delicate: should same methods of valuation be used for both?
- jeroen 18y agoI think this says a lot about that $9B valuation: Twitter agreed on one condition: that the Facebook stock it received be valued at the price company shares garnered on the open market. Facebook blinked and the deal talks ended.