logoalt Hacker News

dwohnitmok • today at 4:34 AM • 1 reply • view on HN

> If every software developer paid $200/month, every academic paid what they pay for Matlab or Mathematica licenses, every YouTuber paid for whatever video processing, and every normal person paid a subscription comparable to their TV subscriptions and cell phone plans - does that justify the valuations?

> The government pays for surveillance? Companies pay for customer service replacements and target advertisements?

Yes definitely. All together that's probably within striking distance of a trillion dollars in annual revenue. Just TV subscriptions + cell phone plans in the U.S. alone is about 400 billion (leaving aside any other country).

Most large, mature tech companies are at 5-10x revenue to valuation ratios (and 10-20x EBIDTA to valuation ratios).

Of course whether you get there is a separate question, but any company that fulfilled what you're asking would pretty easily justify multi-trillion dollar valuations.


Replies

xscott • today at 5:06 AM

You make it sound reasonable then.

That $400B for video and phones though. That's like a $1k average for every adult and child in the country. It's twice what I spend, and I'm not on a family plan.