Bebo Sold for $1 billion!!

[Slade]

Well guys, another small startup online venture has been sold for a ludicrous amount of money. check this article out - Is Bebo Worth $1 billion? (http://www.techcrunch.com/2007/05/20/is-bebo-worth-1-billion/)

Do you think we are starting to see the same cycle that happened in the Internet Crash at the start of the millennium? Share market is falling over, internet companies are being valued at crazy prices based on user base alone..

Or is this the start of something big?

[crackers]

Yeah I think its wildly over valued. They are just not able to make that kind of cash back.

[rosshill]

I think massive valuations of massive user-bases will continue. Attention is worth a lot.

[Carl Taylor]

hmm yeah interesting comparison.

Only time will tell

[wiiman]

Its not overvalued. Imagine the marketing potential. When Myspace sold it was valued at 580 million. A couple months after it was valued at 4 billion. Advertising is the way of the future and with such a user base that is nothing to spend. You know how much Coca Cola spends a year just on ads?

[Slade]

Fair point, but what value is a user worth? and how can you ensure they are quality users?

How much does coke spend?

[crackers]

The advertising revenue isnt enough for that price tag!