Sunday, July 21, 2013

Network Valuation

At one point in time, bankrupt Kodak had 140,000 employees and had a valuation of approximately $28 billion.  Online photo-sharing giant Instagram has 13 employees and recently sold for $1 billion.

Two very important issues are in play - - the nature of a particular network (i.e., are individuals making "free" contributions to the network, such as like Facebook) and size of the network (i.e., you need a great number of people to participate).

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