Abstract

The case provides details of Sify’s acquisition of IndiaWorld, including the structure of the deal, its perceived synergies and the criticisms leveled against the huge amount paid for the acquisition. The case also highlights the problems faced when valuing dotcom companies using traditional models of valuation. It describes certain valuation models that were devised for valuing dotcom companies. The case also illustrates the application of one of these models to determine whether the acquisition was overvalued or undervalued.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Concept of valuation and valuation models for dotcom companies.

Keywords

Sify, acquisition, IndiaWorld, structure, deal, synergies, criticisms, valuing dotcom, traditional, models, valuation, overvalued, undervalued