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You are buying the potential for profit. Not exactly the same thing, but in a way it's similar to buying a broadcast license. Companies pay millions/billions f
by markdown 13y ago
You are buying the potential for profit.
Not exactly the same thing, but in a way it's similar to buying a broadcast license. Companies pay millions/billions for the right to project some media onto eyeballs.
- adventured 13y agoExcept a broadcast license is protected and inherently limited by the govt. Tumblr's position in the world is neither (ask all the tumblrs that have come before). It's really nothing like buying a broadcast license.
- markdown 13y agoPlease read my comment again. I never said it was the same thing. > It's really nothing like buying a broadcast license. Both provide access to eyeballs, and both are bought with the intention of monetizing that somehow... usually with advertising. That's a similarity in my book.
- hcarvalhoalves 13y agoI believe the better analogy would be buying a broadcaster, not a license. A license is just the government milking the private sector over a historical real world limitation (broadcasting frequencies).
- coldtea 13y ago>You are buying the potential for profit. So, let me rephrase the question: Isn't something really weird going on in the world when you can sell a company with almost no revenue (let alone profit) and no obvious business model in the horizon for $ 1.1B, AND no bloody potential for that kind of profit either, similar to endless other deals that got nowhere for the buyer, or is it just me?