FilmLoop and Alexa – When Fake Rankings Kill Companies

There’s much sturm und drang about the nasty setup and selloff of a little company called FilmLoop in the business community this week. While there can be much debated about liquidation preferences, drag-along rights and sharp practices, there is one issue relevant to the datacenter operator – the claim by some VCs that Alexa rankings are a good validator of an Internet company’s audience and future traffic. And now, since we’ve stepped out of money-land and into datacenter-land, let’s examine this assumption a bit more carefully. Is Alexa a good validator of a business, or not?

Leave a Reply

Your email address will not be published. Required fields are marked *