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I'm confused, very confused. There's talk about this acquisition being in the $1 Billion range. Can anyone break down how this company can be worth that much m

• dakimov 13y ago
  Of course, that company is clearly not worth that amount of money even closely. It was a startup running exlusively on investors' money with no model of generating revenue whatsoever. Without the acquisition their perspective would be to run out of money and fade away. Yes, they have an impressive userbase, but even that userbase is hardly worth $1B. The price paid obviously has nothing to do with the real value of the company. I guess Google managers have their motives. On the Google's scale usual business rationales do not work. Obviously, the giants pay billions mainly because they can. Speaking of the motivation, this deal looks pretty much like shutting down a competitor, though I do not know what Google will actually do.