tag:blogger.com,1999:blog-8152901575140311047.post2695222017553690987..comments2024-03-29T07:41:47.433-04:00Comments on Musings on Markets: If we don't do it, our competitors will! Defensive Dealmaking or Panicky Preemption?Aswath Damodaranhttp://www.blogger.com/profile/12021594649672906878noreply@blogger.comBlogger22125tag:blogger.com,1999:blog-8152901575140311047.post-31604418241493007662014-03-20T06:14:18.678-04:002014-03-20T06:14:18.678-04:00As a consultant for ConceptsIT, he was told his jo...As a consultant for ConceptsIT, he was told his job would be to translate a client's needs into technical language so that ConceptsIT's workflow remains good.<br /> Manish Sangal, as one innovative founder of this company created many job opportunities for thousands of people.Manish Sangal Conceptsithttp://conceptsit.comnoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-87487005480678820242014-03-06T11:39:26.992-05:002014-03-06T11:39:26.992-05:00What would you loose if you exchange it with me.?
...What would you loose if you exchange it with me.?<br /><a href="http://www.saltbranding.com.sg/" rel="nofollow">No 1 Brand's Company</a>Jhon Staphenhttps://www.blogger.com/profile/09109650156172127414noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-87707514587474826802014-03-06T02:27:54.783-05:002014-03-06T02:27:54.783-05:00Excellent postExcellent postPENNY STOCK INVESTMENTShttp://www.manhattancalumet.comnoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-74935136177835789162014-03-04T01:45:25.990-05:002014-03-04T01:45:25.990-05:00One would expect that at a minimum very basic arbi...One would expect that at a minimum very basic arbitrage opportunities do not exist in integrated financial markets. Stock Exchangehttp://blog.epicresearch.co/noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-22714471225218489932014-03-02T18:08:16.199-05:002014-03-02T18:08:16.199-05:00I appreciate your blog post, beautifully expressed...I appreciate your blog post, beautifully expressed and well written.Radiator Covers UKhttp://radiator-covers.iftekharahmed.comnoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-20716397037729519102014-03-02T04:48:15.120-05:002014-03-02T04:48:15.120-05:00Very value able post, I read the whole story when ...Very value able post, I read the whole story when I start reading it.Free Online Gameshttp://www.ourfog.comnoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-2270239885710931142014-03-01T10:00:57.309-05:002014-03-01T10:00:57.309-05:00The board is borderline useless since Zuckerberg h...The board is borderline useless since Zuckerberg has complete voting power. I think he may replace the entire board whenever he pleases, so what they think it's pretty much irrelevant for the most part.<br /><br />It's hard to imagining a board member at FB voicing dissent over anythingAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-14061533662287689382014-03-01T02:24:39.879-05:002014-03-01T02:24:39.879-05:00I dont think this preemptive acquisition is a soun...I dont think this preemptive acquisition is a sound valuation argument, especially for listed companies. The reason is simple - investors can swap your stock with any of your competitor's. The board must've been sleeping.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-38495966241153892412014-02-28T12:21:03.005-05:002014-02-28T12:21:03.005-05:00Prof, in the facebookWhatsapp spreadsheet, on Inpu...Prof, in the facebookWhatsapp spreadsheet, on Input Sheet, the numbers you used for the options represent the balance as of Dec 30 2012, instead of 2013. Is there a reason for this?<br /><br />Should it be 22.1m options outstanding at an average strike price of $3.56? Or am I missing something?<br /><br />ThanksAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-90499295565212073382014-02-28T11:32:06.784-05:002014-02-28T11:32:06.784-05:00Glad to read your post :). It is very informative!...Glad to read your post :). It is very informative!SEO Experthttp://www.iftekharahmed.comnoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-7108890347683520072014-02-27T19:13:42.177-05:002014-02-27T19:13:42.177-05:00what about current value of Facebook, if we believ...what about current value of Facebook, if we believe that 19B (or less) properly values the threat to Facebook; I mean, the threat is already in place - is it in the price or not ?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-31194343717084244012014-02-27T10:29:17.438-05:002014-02-27T10:29:17.438-05:00Excellent analysis Professor !Excellent analysis Professor !Anonymoushttps://www.blogger.com/profile/16119298676850524052noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-59413891906666146762014-02-27T10:27:18.538-05:002014-02-27T10:27:18.538-05:00Excellent analysis ProfessorExcellent analysis ProfessorArinjaynoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-33763303149944006612014-02-27T07:57:22.654-05:002014-02-27T07:57:22.654-05:00@Yoav Saffar: The prof addressed that on his previ...@Yoav Saffar: The prof addressed that on his previous post - check it outAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-84895867686525923042014-02-27T02:21:53.139-05:002014-02-27T02:21:53.139-05:00good article with multiple number of ideas.good to...good article with multiple number of ideas.good to read <b><a href="http://www.webdesign.123coimbatore.com/" rel="nofollow"></a></b>Anonymoushttps://www.blogger.com/profile/14588229614761237553noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-82624925983923066952014-02-27T01:34:24.963-05:002014-02-27T01:34:24.963-05:00Keep it simple and small when you are first starti...Keep it simple and small when you are first starting out. It can be fun and exciting to pick a buffet platter of stocks but as a beginner, you need to start off small.<br />Stock Market Investment Strategieshttp://blog.epicresearch.co/noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-13696222915756398692014-02-26T22:22:37.859-05:002014-02-26T22:22:37.859-05:00Professor, what about the possibility that Faceboo...Professor, what about the possibility that Facebook believes that its shares are overvalued, yet on a proportional basis, Whatsapp worth about tenth or more of Facebook?<br /><br />That's probably the reason the deal was done 80% equity 20% cash?<br /><br />I didn't see someone tackling this transaction from this angle yet<br /><br />Would love to have your thoughts on that, since in prior work you've done, you also claim Facebook is way overvalued at current levels.<br /><br />Thanks,<br />YoavYoav Saffarhttps://www.blogger.com/profile/02820448109864785716noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-22413792701689980762014-02-26T19:21:24.202-05:002014-02-26T19:21:24.202-05:00Growth for the sake of growth is called cancer. Ma...Growth for the sake of growth is called cancer. Maybe Zuckerberg should watch your youtube videos.<br /><br />Thanks for another post, I am a huge fan.Anonymoushttps://www.blogger.com/profile/10981406467751967448noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-48746398795086537512014-02-26T13:57:33.536-05:002014-02-26T13:57:33.536-05:00Hi, professor!
I’m a huge fan. I watched your MBA...Hi, professor!<br /><br />I’m a huge fan. I watched your MBA valuation classes and read your blog regularly. I understand you teach that stable growth should be equal to or smaller than GDP growth. <br /><br />Smaller would make sense because young companies have high growth and, thus, stable companies would have a smaller growth to compensate for that.<br /><br />The young companies that prosper have a lot of growth, but most young companies fail, and so the growth for those failures is negative. <br /><br />I wonder if the collective effect of young companies on growth (including the failures) is truly above GDP growth. Is there an explanation or hard data that could make me better understand this relationship? (maybe this make for a future post)<br /><br />Congratulations on your awesome work!<br />Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-63293546102989361342014-02-26T12:06:43.888-05:002014-02-26T12:06:43.888-05:00Dear Professor Damodaran,
Excellent post on why t...Dear Professor Damodaran,<br /><br />Excellent post on why the defensive moat theory doesn't hold up. I share your skepticism about point 4 (uniqueness of threat). It does not seem to be the case in the mobile sector due to the fact that the social network moat can be rapidly built up from phone contacts. This shows that in the mobile sector, the moat that is the social network is easier to breach than on desktops.<br />http://techcrunch.com/2014/02/21/mobile-contacts-are-now-the-real-social-network/<br />Witness how fast Snapchat, and now Telegram, have grown through using phone contacts.<br /><br />I think one non-valuation point that you haven't addressed is the fact that Facebook's dual-class ownership structure biases it towards empire building. Matt Yglesias has a good article on this topic: http://www.slate.com/articles/business/moneybox/2014/02/facebook_buys_whatsapp_zuckerberg_s_total_control_guarantees_more_buying.html<br /><br />I know that thesis falls outside the scope of valuation, but if we're trying to generate an explanatory model for why Facebook splurged on this purchase, and cannot find a solid one on valuation grounds (both defensive and offensive), then that one makes the most sense.Arjun Narayanhttp://www.arjunnarayan.comnoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-22122310277395292712014-02-26T11:57:31.061-05:002014-02-26T11:57:31.061-05:00I want to know about best marketing tips..
No 1 Br...I want to know about best marketing tips..<br /><a href="http://www.saltbranding.com.sg/" rel="nofollow">No 1 Brand's Company</a>Anonymoushttps://www.blogger.com/profile/02430171753992950085noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-37059306375176586672014-02-26T11:51:07.330-05:002014-02-26T11:51:07.330-05:00My limited intuition is telling me that this deal ...My limited intuition is telling me that this deal is all about expanding Facebook's moat. Facebook is a colossal social index and was not designed with monetization in mind. Adding 400 million (and growing) phone numbers and contact lists can only expand the moat. Facebook might also be going for the network effect trying to make it difficult for people to abandon it. Monetization of watsapp users can come later.UniverseofRisksnoreply@blogger.com