How To Value A Failed Dot Com?

from the er...-shouldn't-that-be-zero? dept

Just how do you value a failed dot com? I would think that the number would tend to run towards zero, but apparently, that's not always the case. We'd already talked about some of the complaints shareholders had about Staples buying Staples.com in what looked like a sweetheart deal to compensate the Staples.com management. Now, some of the background information (in the form of emails with bankers) explains how Staples came up with the $900 million price. Basically, it sounds as though they said to Wit Capital, "figure out a way to justify $900 million" and that's exactly what Wit did. Wit, of course, claims the messages were taken out of context. Aren't they always?

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