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June 30, 2015

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Mcowger

>If agreed-upon methods are in place, the M&A discussion becomes more bounded. If LinkedIn is essentially offering $112.88 per gigabyte, lynda.com can point at other valuations in the industry as a way of arguing that the price is too low. - See more at: http://stevetodd.typepad.com/my_weblog/2015/06/valuation-during-acquisition.html#sthash.DbRUP9t0.dpuf

I think its also important to note the effective information density in the data. 10GB of MP4 compressed video will likely have a different density (referring here to both Shannon entropy-style information as well as a more semantic view) than 10GB of clickstream data.

So not only do we end up with a dimension that you suggest to start with around raw quantity of data (and the price paid), but also the nature of that data.

Then, how do we differentiate between storage and encoding mechamisms? Do we always, as alluded to, default to effective uncompressed values? And what about the meta data - I'm sure the data that LinkedIn has around person-to-person connections (the graph data) are just as important as the raw (I worked at XYZ for N years).....how do you value connections among the data, given they are tiny compared to the raw data?

Cool questions.

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by Steve Todd

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