Originally Posted by 450SEL6.9

Great link, bmer. Thanks.

So from the article, at a $5b FB valuation, myspace would be worth $12b. At $10b for FB, myspace is worth $24 billion. Myspace's parent company, News Corp, only has assets worth $62 billion as of 2007. According to these crazy valuations, their myspace unit (which cost $580m in 2005) could account for 40% of the world's largest media empire's assets. Does that not seem absolutely absurd? But then again American mortgage lenders granting mortgages to people without checking their income is equally absurd.

If FB gets to a $10b valuation (and it probably will), we're looking at 2000 internet stock bubble all over again. With the mortgage mess in America, the last thing it needs is another bubble. The article says the bidders don't care about price. I don't know why I read that line so much today. They better start caring about price because the goal of business is to make a profit. You don't make profits when you overpay. I think the American economy is setting itself up for a mighty, mighty fall, but most economists are too blind or conflicted in their interests to see it.

Originally Posted by Imhotep Evil

I think you're confusing assets with market value/capitalisation. Even if myspace could be spin-ed off for 24 billions I don't think it would have anywhere near 24 blns. in assets.
If this is the era of Internet 2.0 that means there will be a bubble 2.0 .