With Goldman Sachs’ $50 billion Facebook buy-in, is a new type of dot.com bubble being created? According to this editorial from Germany’s Financial Times Deutschland, in order to recoup such a mammoth sum, Facebook will have to become a conglomerate – a step that has killed off many of the world’s most innovative tech-savvy companies.
The Financial Times Deutschland editorial says in part:
Along the way, user profiles are being built that are far more accurate, and thus more lucrative, than Google’s. For the time being, this will only pay off for Goldman Sachs investors. The U.S. bank offers investors an opportunity to buy into Facebook, without Facebook having to disclose its financial data – and for that, Goldman will collect a handsome commission.
In addition, Goldman Sachs can one day expect to launch the company on the stock market – and the higher its market value, the higher the fee.
If, however, Facebook is to realize $50 billion or more, it must provide buyers a sound strategy about how the company will achieve current investor fantasies. … Above all, Facebook will have to pull off the balancing act of becoming a conglomerate while remaining innovative. Many other market leaders have failed to do this. Admittedly, at the moment it’s hard to imagine what new idea might bring about the social network’s downfall.
But neither did anyone at Yahoo or AOL.
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