Cambridge Cluster

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Friends Reunited is now valued as little as £20m to £40m compared to the price paid by ITV of £175m.  Perhaps it is time for the Founders to buy it back or else think that social networks have moved on and Facebook has won with 200million users.

It is why you need an outside investor onboard to keep you in touch with the market; it is so easy to keep a life-style or passive equity company chugging along but it is not the role of entrepreneurs.

I remember the words said in ‘87, “We could work for another ten years and not be as well off”.  And not just us, all the staff with their options and all the investors.

So essential and so difficult to do; build a business and keep a watchful eye on the value you are creating.  Of course, it takes special people to be busy building a business and going through the tortuous route of due diligence and closing the biggest deal of their lives.

Related articles by Zemanta

• ITV faces losing Friends as advertising suffers (telegraph.co.uk)
• ITV puts Friends Reunited website up for sale (guardian.co.uk)
• For Facebook, More Users Are More Problems (valleywag.gawker.com)