Boom or bubble?
Rumor has it that MySpace competitor Facebook has been looking to sell out and allegedly turned down a $750 million buyout offer. Management's supposed asking price? $2 billion.
Meanwhile video-sharing site Grouper just sold to Sony for $65 million -- about $70 per user.
All this makes News Corp's purchase of MySpace parent Intermix, at a paltry $580 million, seem like a real bargain -- and reminds us of the late '90s rush to invest in anything .com.
So is this interest in social networking sites a sign of a healthy boom? Or a fragile bubble? Tell us what you think.
85% Boom; 15% Bubble. A square screen that you do all your work on, listen to music, interact with friends and family, read magazines, article, news, weather: The Computer. In 10 years, People will buy a 2nd "monitor" for television with a wire to their computer.
The days of conventional Television, Radio, and Press are quickly fading. As is evident by the trend of fleeing dollars from those convential marketing venues, and the flood of money into "new media". Convenience will win out and the computer and the internet websites that deliver the best format to consumers will form the new powerbase in the media market.
As with all booms, overvalued hot spots will fizzle or decline to moderate values once the hype has died. You Tube will follow a storyline similar to Napster, and sell in the next 2 years for over 100 Million. It will need to be heavily re-formated for legal reasons, and if they have a well informed team, they can retain their market share and continue to be a central location. "Is it a Boom?" YES! "Will it sell for over a Billion?" No... Why? Because clicks and views are one thing... converting that to sales by consumers of the marketed products is entirely another.
It should also be noted that YouTube won't be the last. Companies like "STIM TV" have a better format, and no-copyright problems.
Either way, these companies or their formats are here to stay!
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