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June 4, 2000 (#0051)
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:: Something, and something worth nothing ::

You couldn't have missed it. A Wadi company was just acquired for a ridiculously large amount of money, which obviously brings up the question of how should we value companies.

At the university I learnt that this has do with converting a future net income stream into an asset, or something like that. As far as I can remember the interest rate was also important and the formula had some factors in it. But as we all know, this is theory, in no way will such formulas help us evaluate any of the companies we breed here in the Wadi.

So, we look at other things. Future revenues, value for strategic partners, growth of audience and so forth. All are just as helpful as the university formulas. Meaning - not helpful at all.

And we are left with a hunch. And one insight we can use.

The question is not how much is it worth but is it worth anything at all. The company I am talking about was worth nothing. Anyone could see it.

Oups, sorry.

Are we thinking about the same company?

I was talking about Hypernix, were you thinking something else?


Wadi Writer #1 (Gray)

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