Monday Musings: The Street Value of What?

Smile! You’re on candid… Who?

Facebook is paying 1.1 Billion dollars for startup Instagram.  

In a video from 2011, New York Times Magazine contributing writer  Clive Thompson explained why writers should use the photo-sharing app in their daily lives.

We’ve seen some unusually large payouts for application companies over the past few years, and given what professional sports teams are willing to pay for star players, maybe it isn’t surprising.

… but we still have to wonder why anyone would pay 1.1 Billion for a photo-sharing application company?

There’s more to this than meets the eye.

Intellectual Property:

I.P. (Intellectual Property) is Big Business, regardless of the industry you’re involved in. The patents one holds in a portfolio can mean the difference between life… the ongoing financial security of a business… and death due to accidental or incidental infringement of someone else’s patents.

AOL is scrambling furiously for its life, so it is selling a portion (eight hundred patents) of its IP portfolio to Microsoft for the unheard of price of 1.1 Billion Dollars.

It’s curious because the value of its entire portfolio, which includes yet another three hundred patents, was recently valued at somewhere between two hundred ninety and three hundred million dollars.


Ignore the man behind the green curtain in the corner:

Is this a matter of someone selling a pig-in-a-poke?  Is there something in the portfolio that the street has over-looked?

… or does Microsoft have its eye on a bigger prize and is paying an intentionally inflated price… using this purchase as part of a yet hidden sweetheart deal?



About Gwendolyn McIntyre

Author, editor, businesswoman, musician, lover of jazz and horses. Chief investigator of all things that go BUMP in the night.
This entry was posted in Blogging, Information Technology, Paying Attention, People, Publishing, The Art of Self-Promotion, Things you might have learned had you been paying attention, Writing and tagged , , , , . Bookmark the permalink.

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