Dot Com Bubble II
I am a dinsosaur. I freely admit it. In the heady days of Dot Com Bubble I, it was often said that old foggies didn't "get it", when they stared open mouthed at insane valuations. A decade after that, I still don't "get it". Can somebody explain to me the valuation of $ 8.5 bn for Skype, which Microsoft announced buying a couple of days back. Skype still makes no money after being around for a fair bit now. Make no mistake; its an excellent product - I am an unadulterated fan and user of Skype. Its just that most users, and there are millions of them, use it for free and don't spend a nickel. Skype doesn't make a profit and there's nothing in sight as to how they might make one. A year and a half ago, Skype was sold for less than $ 3bn - what has happened in a year to almost triple that valuation ?? Or take Linked In - a so called business networking site that I abhor. At least it turns a profit. But its turnover is in the low millions. It has ...