Tech Bubble 2.0 Busting

Posted by Colbert Low on November 1st, 2006

Are we seeing a tsunami wave of dotcom bustings…

It began with eBay’s purchase of Skype for $2.6 billion. After that, Rupert Murdoch’s purchase of MySpace for $580 million. Next, Google’s follow up with $1.65 billion moola purchase of YouTube, a video-sharing site that offers more than 100 million video clips a day and copyright problems. This shows that the logic used to give explanation for purchase prices on the basis of page views and synergy rather than the more traditional metrics of sales and profit. There is so many more online Web 2.0 purchases going on. Ballmer gives a hint of doubt about Microsoft’s more disciplined approach. After all, it was the third time Microsoft had been outbid and outflanked in recent months, as Google snared deals with both MySpace and AOL. And now Google eats up Jotspot. If only I earn 1% of those deals, I’d be able to afford that small island in the Caribbeans.

It’s time for Tech Bubble 2.0

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