Feeds

Freeserve price tag questioned

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

  • alert
  • submit to reddit

Choosing a cloud hosting partner with confidence

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. ®

Top 5 reasons to deploy VMware with Tegile

Whitepapers

Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
5 critical considerations for enterprise cloud backup
Key considerations when evaluating cloud backup solutions to ensure adequate protection security and availability of enterprise data.
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.
Managing SSL certificates with ease
The lack of operational efficiencies and compliance pitfalls associated with poor SSL certificate management, and how the right SSL certificate management tool can help.