David Rosenthal: evaluation

Transcript context

…Oh, adding too many on the list here. We’re only going to rank the top 10, but we have some honorable mentions to start with. First and most, absolutely given recent Acquired history, we would be completely remiss if we don't mention WhatsApp on this list. The buying estimate and as we talked about on the episode, definitely one of the best acquisitions of all time. The way we tried to estimate market cap contribution of the acquired companies into the parent companies was via the percentage of revenue that that company is now responsible at the parent company and then what the revenue multiples of the parent company. We totally recognize that a lot of these companies don't trade on revenue multiples. They trade on a free cash flow basis, but we can't get the cost structures of the acquired companies anymore, so this is the best we could do. Yup. Again, I think it's directionally correct. The fun part about getting to do a show that's kind of the director's cut here is we can talk a little bit especially in playbook as we get into it and hem and haw a little bit about ones that we were too generous on or not generous enough by just thinking about it as revenue contribution to the business.…

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