Well, if someone is willing to pay 400M for 5% of the company it certainly seems like it's worth 8B total. This is how markets work. How else do you propose we put a value on things?
That's not a market valuation. That's one group's overinflated opinion of Twitter's value.
A market valuation is obtained by offering a good for sale to a public group of people who, in concert, determine a fair value over a certain period of time.
Comments
Well, if someone is willing to pay 400M for 5% of the company it certainly seems like it's worth 8B total. This is how markets work. How else do you propose we put a value on things?
That's not a market valuation. That's one group's overinflated opinion of Twitter's value.
A market valuation is obtained by offering a good for sale to a public group of people who, in concert, determine a fair value over a certain period of time.