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Aug14
Dot.Com Deja

Is it just me that smells something going rotten in the state of social networking? OK, I know that the “Wizened of Oz” coughed up $580 million to buy MySpace and they just pulled off a nice $900 million deal with Google (See my post of Aug 13th) which on top of their rapid growth makes it look like the Aussie octogenarian is a clever old “Bruce.” But with the news that Viacom might be talking to Bebo and FaceBook about a possible acquisition of one or the other for asking prices of $1 billion and $2 billion respectively, my eyes start to glaze over. Too much like the glory days of the late nineties when dot.com companies were being bought at prices that could never be justified by possible revenues. A lot of people lost a lot of money because the “New Economy” snake oil was predicated on building share of market, rather than revenues, let alone profits. I’m starting to smell that same smoke now… How long before we see the flames?  157482607_486963b96d_m.jpg

Share of market. Revenues. Profits... Which came first?

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