mannerisms

Ruminations on the electronics industry from David Manners, Senior Components Editor on Electronics Weekly.

Now For A Damn Good Laugh

What a laugh to see social networking site MySpace sold for $35 million by Sky which had bought it for $580 million.

 

Not quite such a laugh as AOL which paid $850 million for Bebo and sold it for $10 million two years later.

 

But funnier than Friends Re-United which was bought by ITV for £175 million and sold three years later for £25 million.

 

The laughter may be forced in Goldman Sachs’ offices where an attempt is being made to inflate an asset bubble around social networking.

 

Typically Goldman Sachs bought a sub-1% stake in Facebook for an enormous sum so putting a large notional value on Facebook which has subsequently been inflated to over $100 billion.

 

But now Facebook is shrinking in the USA and Europe. It is being used less and people are de-registering. The young are moving on.

 

It’s what the young do.

 

Facebook is uncool. The next cool thing – Bumbook or somesuch bollox – is catching on.

 

For Goldman Sachs it’s a bummer.

 

And that’s OK by me.

Tags: bebo, bollox, goldman sachs, laughter, social networking site

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9 Comments

  1. David Manners
    July 05, 2011 16:03

    Same thing [Anonymous]

  2. Anonymous
    July 05, 2011 14:31

    Sky never owned myspace. You surely mean newscorp?

  3. Sceptic
    July 05, 2011 13:20

    Facebook – the perfect environment for dullards and no-hopers to draw-out their pitiful, uninteresting lives. It contibutes nothing and bears nothing but misery through it’s members back-biting.
    Good riddance I say.
    Sceppers
    PS
    Sky lost 545 million US? I sincerely hope it came straight from that loathesome pillock James Murdock’s pocket money.

  4. Chuckwallah
    July 05, 2011 11:56

    If Facebook truly is on the decline then there are an awful lot of companies and organisations out there who are unaware of it. The “Like us on facebook” slogan is still spreading, virus like, throughout internetland.

  5. Professor WhapCaplett
    July 05, 2011 11:41

    Rather like how we bought houses for several hundred thousands of pounds and they are worth half that now!
    Nobody to bail us out! Suck it up sunshine – debt slavery for the forseeable future.

  6. greg
    July 02, 2011 23:01

    Yesterday I read that Facebook has come up with a strategy to make money. They’ve created their own currency so that now those who play games online and buy things have to pay with Facebook credits. Facebook then takes a 30% cut of all sales. I can smell an IPO coming… I reckon theirs a good chance the bastards at Goldman are going to make money out of it if Facebook can show revenue growth this next year.

  7. David Manners
    July 01, 2011 11:53

    I’m not sure that everyone forgets, Terry, the Goldman Sachs bollox machine is grinding away again now trying to pump social networking stocks – no doubt bearing in mind the No.1 lesson it learnt from the boom ten years ago: Get Out In Time

  8. Terry
    July 01, 2011 11:49

    Remember lastminute.com? The ridiculous value put on that was aruably what burst the previous dot com boom. 10 years is just long enough to forget what didn’t work the previous time.

  9. St0815
    July 01, 2011 06:53

    Google+ seems to be gaining some traction. If it loses GS some money that’s fine by me.