What are valuations of internet businesses based on?
Question asked by: mrquestion
Asked on: 28 Jan 2010
Valuations of internet businesses are based on, it seems, how much traffic they have and how many members they have.
Those seem to be the fundamentals which is why sites like facebook and also twitter can get such huge valuations.
What is interesting is whether that audience base and the number of hits the sites get is actually worth that much fundamentally: for instance if 99% of your audience is penniless students then what exactly are you expecting to get from them financially to match that valuation?
By: knowitall
Replied at: 28 Jan 2010
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