The Value of a Dot Com
The Value of a Dot Com
For ambitious Internet entrepreneurs, Google's $1.65 billion purchase of YouTube.com is simple: Build a real, functioning company, then sell it to a bigger one.In the 1990's the dot com bubble was the result of garage innovators peddling imaginary businesses in initial public offerings. This world was so knew to the public, it was an easy sell. Any idea that even seemed interesting provoked investors. That stir alone was all that many needed to push their values up.
Today, dotcom's are much more fully formed and partially led by wealthy veterans of the first boom. They know Google's not the only shopper. Yahoo! spent close to $100 million for start-ups like Flickr and Jumpcut.
Now, investors are on track to inject $500 million into many Dotcoms this year, which is twice last year's total. According to a Dow Jones VentureOne report--this may be the start of a golden hunting season once again.
Today's Web 2.0 companies use new sets of tools to establish themselves, investing years of knowledge--and far less than the millions that were needed to build dotcoms in the '90s. Many are spin-off communities for sharing links, photos and videos. Others are focusing on music, travel or online software.
With MySpace being sold to News Corp. for $580 million, some gasped while others thought that was modest. Today, MySpace may be worth about $3 billion. That value change may have simply been the addition of the applications to completely capitalize on what was already there.
What Should You be Doing with a Web 2.0 Startup?
An Example: There are so many great travel sites, so any new entry needs to have a much better "A" game. An innovative setup like Farecast.com now uses IT PC and programming power to predict air fares. They use an algorithm to crunch 100 billion prices in its database, then evaluate 200 attributes that affect plane fares. From those trillions of combinations, it figures out whether you should buy a ticket now or wait for prices to drop. Not bad!The point here is you have to be able to offer more than just a service. Dot coms today are offering service, innovation, foundations, and a work ethic that certainly rivals any other business industry. Bringing something new, and going over the top with your application or service is now a requirement.
Also consider that the Real Value of a Dotcom is not necessarily what it is, but rather what it currently does. These type of valuations placed on dotcoms are the very reason that you'll find unparalleled work ethic and innovation behind some of today's fastest growing IT Businesses. Resting on your laurels simply means your dotcom value sinks!
A sign of the Times
How about that photo destination Webshots that was sold twice by the same people? First to Excite@home (a dotcom casualty) for $82.5 million in stock in 1999 and then, after buying it back in 2002 for $2.4 million, they retooled it and resold it to CNET for $70 million in 2004. Timing and ideas - often, it's the innovative minds behind them.Some of the Larger Known Deals
| DotCom Hotmail Internet Movie Database Viaweb Netscape Communications GeoCities Broadcast.com Thawte Network Solutions eGroups AllBusiness.com HotJobs PayPal Inktomi Pyra Labs Overture Services, Inc. Keyhole Inc. Kelkoo Picasa Oddpost.com Lycos Upcoming.org Skype Ask.com TheHomeBuyingCenter.com DialPad Communications MySpace Konfabulator dodgeball Friends Reunited del.icio.us Webjay SketchUp Writely YouTube WebEx Last.fm | Buyer Microsoft Amazon.com Yahoo! AOL Yahoo! Yahoo! VeriSign VeriSign Yahoo! NBCi Yahoo! eBay Yahoo! Yahoo! Yahoo! Yahoo! Daum Yahoo! eBay IAC/InterActiveCorp unknown Yahoo! News Corporation Yahoo! ITV plc Yahoo! Yahoo! Cisco CBS | Price $400,000,000 $49,000,000 $4,200,000,000 $3,570,000,000 $5,700,000,000 $575,000,000 $21,000,000,000 $432,000,000 $225,000,000 $1,500,000,000 $235,000,000 $1,700,000,000 $95,400,000 $2,600,000,000 $1,850,000,000 $200,000,000 $580,000,000 $230,000,000 $15,000,000 $1,650,000,000 $3,200,000,000 $280,000,000 |
Dotcom Value's Largest Asset
There is no doubt that today's thriving dotcoms are unique.- It is no longer enough to have a great idea.
- You can not depend upon just unique technology
- Website traffic can come and go.
The common denominator behind most successful IT businesses or venues is often a family of innovative minds that not only pull the best out of brainstorming meetings, but that also know that "grindstone" intimately!
© ..Paul Hamilton - Editor / Administrator / Owner
WorldsLargestNetwork.com
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