Wednesday, September 26, 2007

Facebook, overvalued, overrated

Unbelievable as it may sound, there are people out there who actually believe that the current social networking fad Facebook is worth up to US$10 billion. O_o With around 34 million active users that is roughly around £130 per user. O_O For a company that has very little cash flow and revenue.

Bad move Microsoft. Remember the Hotmail bubble? Even then you guys paid around US$50 per user. Now the rebranded Windows Live Hotmail is lagging behind competitors. What about Yahoo!'s acquisition of Geocities or Time Warner's AOL? None proved to be worth the price tag.

Anyway, like Myspace and Friendster, Facebook is yet another Web 2.0 fad. Wait a year or two, and I am sure another new social networking site will come to exist and will be the new mass-media darling. Just wait. The bubble has to burst eventually.

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