Here is a piece on BusinessWeek.com about Facebook’s valuation.
I think deal meister Bruce Jaffe (ex-Microsoft) had put together this really stupid deal together among others.
Come on!! I don’t think the idea of Facebook is unworthy of much money, but the monetization of it is what is impossible. I agree with the vision that say in 20 or 50 years from now, ideas like this will be commonplace in our lives like utilities and cars are today (read “The Big Switch”).
But I am skeptical on how money is going to be made. Now you can argue if Google is being smart by putting to work its one trick pony for the millions of things they invest in like Docs, Blogger, Youtube.com etc. I think at the face of it, they’ve gotten into so many things, changed the game in so many ways that they may be able to develop new revenue models in the future. Unfortunately another side of me thinks they are going to fizzle out in 10 years. Who knows? Do you????
Facebook is a one trick pony when it comes to the idea – that is the crucial difference between them and Google. Facebook does not have a revenue stream, forget those ad deals, they are measely. Its like Youtube.com – a money suck and fund-able only by a giant parent company.
I think anyone with a bit of common sense would have figured that Facebook will implode sometime soon. I forget, what’s that age-old saying about common sense?