13. Conclusions
13.1 R ECOMMENDATIONS
The topic of valuing Internet or new technology firms is complex. Even if the Internet industry has matured compared to its infancy in late 1990ies, and seam stable in some areas, compared to prior year 2000, the industry is still developing fast. When talking to
professionals in firms’ valuation, it is still difficult to get clear answers of what valuing approach should be valid, and many seams uncertain, when talking specifically about volatile industries as Internet industries (Interviews, 2006). Further studies on valuation of new
technology firms should be more focused on different business models, the power of adequate management, and the likeliness to maintain operations over a long period of time, which also is the trend (DI, 2007; Koller et al, 2000). How the valuation of these parameters will be managed is still an issue, but the solution may be found somewhere in between of the two valuation paradigms presented.
Further reading on Merges & Acquisitions are recommended to the interested, as well as further reading on strategies on valuing volatile industries.22
22 Books recommended on these topics could be: “Företagsförvärv – en introduction [English translation:
Acquisitions – an introduction],” by Robert Sevenius (2003), and “Financial Dynamics – A System for Valuing Technology Companies”, by Chris Westland, 2003.
Thesis Work Student
Mr. Pontus Claesson, MSc student at Chalmers, Sweden and MBA student at NCTU, Taiwan.
pontus.claesson@asia.chalmers.se
Supervisor at Chalmers University of Technology
Dr. Magnus Holmén, Industrial Dynamics, Chalmers.
holmenm@chalmers.se
Supervisor at National Chiao Tung University, NCTU Taiwan
Prof. Hsiao-Cheng Yu, Management of Technology, NCTU.
chengyu@mail.nctu.edu.tw
Supervisor at MindValue
Mr. Robert Bengtsson, Chalmers School of Entrepreneurship, Chalmers.
rb@mindvalue.eu
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4. Dagens Industri. 2007-01-09. Svenskarns som tjänar storkovan på nätet.
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Appendix A
Internet
Short history brief
The idea of an interconnected globe was first stated in the beginning of the 1960ies. A wide variety of computer experiments were going on at Massachusetts Institute of Technology (MIT), Boston, USA and the embryo of an interconnected globe begun to take form. The plan and ideas of a global interconnected net developed further, and in the 1970ies the United States Department of Defense Advanced Research Projects Agency (ARPA) officially sponsored the project23. The name ARPANET was used already in the 1960ies because of ARPA’s interests already by then. During the 1980ies the launch of the personal computer (PC) raise the awareness, and the new PC/technology era is booming. In 1990 the ARPANET has grown from 4 to 300,000 hosts in 20 years, and have connections all over the world. The next year, 1991, the users doubled in numbers and the net’s dramatic growth continues with National Science Foundation, NSF lifting any restrictions on commercial use. The Internet becomes such a part of the computing establishment that a professional society forms to guide it on its way. In the beginning of the 1990ies the WWW bursts into the world and the growth of the Internet is booming. “What had been doubling each year, now doubles in three months.
What began as an ARPA experiment has, in the span of just 30 years, become a part of the world’s popular culture24”25.
23 The research and computer experiments were already sponsored before the 1970ies, but the Internet and Transmission Control Protocols were initially developed in 1973, by the United States Department of Defense ARPA.
24 http://www.computerhistory.org/, Internet history 1962 to 1992.
25 http://www.computerhistory.org/, Internet history 1962 to 1992.
Appendix B
List of some deals by Swedish IT & Internet companies:
• Playahead: Founder: Jonas Frost and Leif Carlsson Amount: Sold for 102 million Swedish Crowns SEK to MTG in 2007
• OnGame - Bwin Games AB: Founder: Hörnell Family Oskar & Karl Hörnell with Claes Lidell Amount: Sold for 4,5 billion Swedish Crowns SEK to Bwin
• Tradera: Founder: Jonas Nordlander Amount: Sold for 365 million Swedish Crowns SEK to Ebay in 2006
• Lunarstorm: Founder: Richard Ericsson Amount: Sold for 170 Million Swedish Crowns SEK to Sten Mörstedt, CLS Holdings in 2006
• Skype: Founder: Niklas Zennström & Janus Friis Amount: Sold for 30 Billion Swedish Crowns SEK to Ebay in 2005
• Blocket: Founder: Pierre Siri Amount: Sold for 183 Million SEK to Aftonbladet in 2004
• Pricerunner; Founder: Kristofer Arwin, Martin Alexandersson and Magnus Wiberg.
Amount: sold for 220 million SEK to Valueclick in 2004
• Lensway; Founder: Daniel Muhlbach Amount: sold for 104 Million SEK to Coastal Contacts in 2004
• Tradedoubler; Founders: Felix Hagnö, Martin Lorentzon and Magnus Emilson. Sold in 2005.
(Source: Dagens Industri, 2007; Company press releases, 2006)