Yesterday Henry Blodget unveiled the new SAI 25 which values the top 25 startups. At the top of the list was Facebook, bringing in a valuation of $9 billion. Didn’t Microsoft value Facebook at $15 billion though? Well yes but as most people know, Microsoft over-valued Facebook. So how about the other Silicon Valley darling, Twitter?
Silicon Alley Insider valued the company at a measly $75,000. The companies are also pegged to the Nasdaq and have valuations updated in real-time via the SAI 25 Live. Many of the valuations are way off the mark and many have no realistic basis. It’s a great attempt though.
As Erick Schonfeld points out, “SAI gets at its $125 million valuation for Digg by â€œsplitting the differenceâ€ between a $200 million buyout rumor we reported and the $60-to-$80 million that Kara Swisher came up with. Splitting the difference between two rumors is not exactly the height of financial analysis.”
Regardless of the varying valuations, Blodget has definitely furthered the game of estimating private startups in the Valley. It’s a fun game but nobody will win until the startups get acquired.