Posts Tagged Xerox

Update: “Social Networking is a Stupid Fad”

Brian Womack at Bloomberg just pointed out what everyone in the Valley and technology have known for some time: Social networks are more valuable than many of the Web 1.0 companies that have come to be household names over the past decade.

Facebook valuation hits $41 billion. Say it a couple of times and let that sink in. Combined with secondary market valuations of Twitter and LinkedIn, the Big 3 social networks are worth more than $46 billion — that’s some serious coin considering all of these companies are about 10 years newer than the watch I’m wearing right now. (Note to self: buy new watch.)

Greenspan made his infamous irrational exuberance speech just after I launched a start up .com. Thanks for that.

To my post from the other day: “so what, who cares?” remains the refrain from many people around the world who stand on the sidelines and scoff at such lofty valuations and the utility of being social. Rational or irrational. Call Alan Greenspan because the exuberance is there. And when that kind of exuberance exists from the capital markets, things change. Big things. Think the Bull Market of the late 90s. The U.S. housing market from the same period. Justin Bieber right now.

Nevermind what Facebook has done in terms of surpassing eBay or Yahoo! valuation.  Look at it compared to iconic brands that have been around for generations. Its worth three times more than Xerox. Forty times more than Kodak. And, if you look at Facebook purely as a medium through which to reach consumers (like a newspaper) it absolutely humbles what is the greatest institution in journalism: the Wall Street Journal — which Rupert Murdoch bought for a skim-milk price of $5.6 billion in 2007.

Maybe social networking is the alternate reality. But, what if it’s not?

– Jose Mallabo

, , , , , , , , ,

2 Comments