Dave Winer on the Six Apart-LiveJournal Acquisition

Dave Winer:

In all the speculation about the deal betw Six Apart and LiveJournal I haven’t seen what surely is the motivator. Six Apart plans to go public. The market will value SA based on its ability to generate profits, and it will likely do so in proportion to the number of users, the theory being that they can sell things to the users, so the more users, the more they can sell. The more users the more value. LJ has a lot of users. So the founders of LJ get SA stock, and the shareholders of SA get more users, and value of the combined companies goes up and the day of the IPO gets closer.

★ Thursday, 6 January 2005