Poor Old Goldman Sachs
Poor old Goldman Sachs – there they were sitting around Wall Street innocently minding their own business – in this case pumping up an asset bubble around social networking sites to make a speculative killing on Facebook – and along comes some absolute rotter who pours merde all over their cunning plan.
The rotter was Justin Siegel, CEO of MocoSpace, who is talking to News Corp about a possible purchase of social networking site MySpace.
Siegel said the likely price for a purchase of MySpace was somewhere between $50 million and $200 million.
Sounds hefty – but the snag is News Corp paid $580 million for MySpace in 2005.
So if history repeats itself, whoever puts a dollar into Facebook now, will see it worth ten cents in 2017.
Not quite the impression which Goldman Sachs wanted to give its potential customers about the value of Facebook shares.