Feeds

Freeserve price tag questioned

Dixons values its ISP above Yahoo! - can this be right?

  • alert
  • submit to reddit

Top 5 reasons to deploy VMware with Tegile

Yet more speculation is doing the rounds over how much Freeserve is really worth. This time it comes from Broadview, IT mergers and acquisitions specialists. It reckons that based on value per subscriber and revenue the £1.3-£1.5 billion valuation put about by many sources, including Dixons, could be flawed. In today's Financial Times, Victor Basts, Broadview's MD said: "Because the free ISP model is moving inevitably to a portal/content provider model, Freeserve must be compared with public companies with these characteristics." With 1.32 million active users claimed by Freeserve, its current valuation works out at about $1500 per head. By comparison, Yahoo is worth $1140 per head. Broadview also points out that the company's revenues are much lower than similarly valued companies. AOL has annual revenues of about $4 billion, Yahoo brings in around $300 million and Freeserve has a much smaller £2.7 million. He went on: "A comparison with the 'universe' of net portals and network companies which are publicly traded shows that Freeserve is being valued above all US companies except AOL." He concluded that for the Freeserve valuation to have any validity, the company needed to reposition itself as a portal. He argued that all free ISP's will need to become portals to attract and keep users. Repositioning would involve investment and acquisitions of companies with features that will attract business, he said. ®

Internet Security Threat Report 2014

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
DOUBLE BONK: Testy fanbois catch Apple Pay picking pockets
Users wail as tapcash transactions are duplicated
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
In the next four weeks, 100 people will decide the future of the web
While America tucks into Thanksgiving turkey, the world will be taking over the net
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.