Category: Appraisal/Valuation

How to Make Skype Worth $8.5 Billion

Microsoft just announced that it will be paying $8.5 billion for Skype.  It is the largest purchase ever for Microsoft, who in recent years avoided big ticket acquisitions since the lackluster results of its purchases of adQuantive and Danger (the makers of the sidekick phone, which gave Microsoft the flop known as the Kin). Microsoft …

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Permanent link to this article: https://betweenthenumbers.net/2011/05/how-to-make-skype-worth-8-5-billion-dollars/

House votes to reduce GRATs – Act before the effective date

A grantor retained annuity trust (GRAT) can be a tax-efficient technique for transferring to children property that the transferor expects to appreciate in value. The transferor (the “grantor” of the trust) creates an irrevocable trust, places property into the trust as a gift, and retains the right to a fixed payment each year until the …

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Permanent link to this article: https://betweenthenumbers.net/2011/03/house-votes-to-reduce-grats-act-before-the-effective-date/

Michael Vick and the Duration of Reputational Damage

It wasn’t long ago that Michael Vick was the highest paid player in the NFL and was frequently tapped for high profile endorsement deals with companies such as Nike, Coca-Cola, Kraft and Hasbro.  But when news of his dog fighting activities surfaced, the endorsement deals came to a grinding halt.  A prison sentence and a bankruptcy …

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Permanent link to this article: https://betweenthenumbers.net/2011/02/michael-vick-and-the-duration-of-reputational-damage/

Steve Jobs’ Key Man Discount

The message boards are abuzz with the news of Steve Jobs’ (possibly) temporary medical leave of absence from Apple.  The obvious question is the impact of this news on Apple’s valuation.  For most large public companies with deep management, this is not an issue.  Relatively speaking, a single person’s importance usually affects only smaller companies, …

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Permanent link to this article: https://betweenthenumbers.net/2011/01/steve-jobs%e2%80%99-key-man-discount/