Are we in serious bubble territory here? Facebook are rumoured to be on the verge of deal with Yahoo – for $1 Billion dollars.
“Facebook, the social-networking start-up popular with high school and college students, is on the verge of being purchased by Yahoo, according to two sources with knowledge of the deal“.
Ok, I can see how a social network could be leveraged to produce that sort of revenue, but there’s a big leap of faith involved. These types of businesses don’t yet make much, if any, money. Some analysts think the price is way up there. No bargains, certainly.
Reminds me of a time….1999, in fact.
Alternatively, social media is the new Google.
It will be interesting to see what happens…