What is an Open Source Company Really Worth?

CNet has an interesting profile of MySQL, JBoss, and Zimbra, exploring what an open source company is actually worth. "Given how slowly revenue accumulates in an open-source company--assuming it is recognizing subscriptions over 12 months--bookings is probably the valuation metric being used or at least strongly considered. It surely is the metric by which the start-up wishes to be measured. So while Savio suggests we open-source entrepreneurs may be "sleeping with dollar signs in (our) eyes," there's clearly a lot of work to do before most open-source companies are worth selling. It's not worth selling out for $100 million. Not for the venture-backed companies, anyway."

Link to TFA

[linumax]

http://blogs.cnet.com/8301-13505_1-9853461-16.html [cnet.com]

Easy Answer

[Nintendork]

It's worth whatever someone is willing to pay. As is anything else in this world. Make something valuable to someone with lots of money and they'll pay lots of money for it. It really is that simple.

Link to article

[claytonjr]

Link to article: http://blogs.cnet.com/8301-13505_1-9853461-16.html?part=rss&subj=news&tag=2547-1_3-0-20 [cnet.com]

Re:Easy Answer

[Anonymous Coward]

It's worth whatever someone is willing to pay. As is anything else in this world. Make something valuable to someone with lots of money and they'll pay lots of money for it. It really is that simple.

Actually, you've got it wrong. The eBay Theorem states that everything is worth what two people are willing to pay for it.