This basically proves my point. If it's only their catalog that has value at this point, then we're admitting 100% devaluation of the platform they built.
And their platform is only worth the present value of a decaying series of cashflows. They have to continue to scale faster than the erosion or growth becomes decline. Yet their valuation seems to assume this game can continue forever.
This basically proves my point. If it's only their catalog that has value at this point, then we're admitting 100% devaluation of the platform they built.
I'm not rebutting your argument but I recall two additional maxims
Content is not King
Andrew Odlyzko (2000) - AT&T Labs - Research
which advised me to build infrastructure and not make videos - my fortune via YT lost :)
and
Joel Spolsky's advice in June 2002
meaning if you make infrastructure - give away the content and make it worthless
So it is interesting that Google followed this advice
And their platform is only worth the present value of a decaying series of cashflows. They have to continue to scale faster than the erosion or growth becomes decline. Yet their valuation seems to assume this game can continue forever.