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The case provides details of Sify''s acquisition of IndiaWorld, including the structure of the deal, its perceived synergies and the criticisms levelled 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. The case is designed to help students critically analyse the valuation of IndiaWorld arrived at for its acquisition by Sify. After reading the case, students should be able to: (1) understand the concept of valuation and the primary reason for undertaking the valuation of an organisation; (2) understand the problems faced by valuation experts when applying traditional valuation models to value dotcom companies; (3) analyse the various models for the valuation of dotcoms; and (4) determine whether Sify''s acquisition deal was overvalued or undervalued. The case is targeted at MBA/PGDBM level students as part of the financial management curriculum.