I honestly think that we are in a bubble right now. Somebody today posted a 1998 AOL article highlighting the purchase of a chat company and the languages are very similar to what we read today about these type of mega buyouts. Having said that, I think that the financial forecast of Facebook is questionable at this point, if they need to keep buying billion dollar price tag items without making money from it's core product, it's a no brainer math that at somepoint in the future they will lose investors confidence and ultimately disappear. I have similar views regarding Twitter.
If Google bought this I wouldn't be worried but it seems that Facebook is more concerned about portraying the image that they are powerful and too big to fail without making enough revenue like their rivals.
Google and Microsoft have enough cash to fail many many more times than Facebook has relatively fewer chances to fail.
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I honestly think that we are in a bubble right now. Somebody today posted a 1998 AOL article highlighting the purchase of a chat company and the languages are very similar to what we read today about these type of mega buyouts. Having said that, I think that the financial forecast of Facebook is questionable at this point, if they need to keep buying billion dollar price tag items without making money from it's core product, it's a no brainer math that at somepoint in the future they will lose investors confidence and ultimately disappear. I have similar views regarding Twitter.
If Google bought this I wouldn't be worried but it seems that Facebook is more concerned about portraying the image that they are powerful and too big to fail without making enough revenue like their rivals.
Google and Microsoft have enough cash to fail many many more times than Facebook has relatively fewer chances to fail.