450 million dollar….this is how much JP Morgan funds (Digital Growth Fund) is aiming to pay for a 10% participation in Twitter!
Adding this 450 million to the already huge value of Twitter, Twitter would value up to 4,5 billion dollar. Where only 2 months ago Twitter was valued 3,7 billion dollar in total. A raise in value of approx. 15%, I wish my investment was gaining capital at this rate!
Again this feeds the thoughts of a social media bubble….although Twitter declares making money, I still don’t see how but then again I’m not making their balance! So are we really heading for a bubble to burst?
Looking at different media and listening to different analysts, and insides (like Google’s CEO f.i.)….I must say I really don’t know. The signs are there. But is every bubble the same, and will it burst eventually? Let look at some signs….
- Is it hard to attract money for new social media/IT businesses? – NO. If you see how easy Facebook and Twitter have access to money!
- Are these businesses making money? – Not yet….and will they in the end….we’ll see!
- Are they showing a clear strategic vision? – Some are….and they have created new public needs (=social connection)
- Is their technology tailored to the needs of the market? – Yes, especially from Twitter, Facebook and LinkedIn who serve a different audience and on focus with their market. But huge investments are needed to maintain this technology (increasing demands!)
- Authentic leadership? Yes, Zuckerberg is a strong ‘brand’ with a clear vision on his ‘product’
So will it burst? It will burst for the small ones, like Netlog, Hyves, Hi5, …. who are competing in a highly aggressive world (unless they change their business model, and get a new focus on sharply chosen market!), but for the big ones….will have to wait and see!
But look at Amazon, they survided…..social media will survive as well! How and when….we’ll notice sooner or later!
If you want more predictions, check out these blogs, and webs:
- http://siliconangle.com/blog/2011/02/11/internet-bubble-again-yes-and-no/
- http://paidcontent.org/article/419-is-the-second-dotcom-bubble-underway-ten-telltale-signs/
- http://gigaom.com/2011/02/14/silicon-valley-the-land-of-confusion/
- http://thenextweb.com/socialmedia/2011/02/21/boom-or-bust-broadband-and-social-media-will-save-dotcom-2-0/
- http://www.businessinsider.com/cloud-computing-bubble-looks-like-dot-com-bubble-warns-ubs-2011-2
- http://technology.timesonline.co.uk/tol/news/tech_and_web/the_web/article3620882.ece
- http://www.quora.com/Will-we-have-a-new-dotcom-bubble-driven-by-Social-Networks-and-Social-Media-in-2011-or-2012
- http://www.actioncoachsocialmedia.com/social-media-bubble/
- ….[and many more]
(Picture from Actioncoachsocialmedia)
[Update March 3, 2011 – Biz Stone, co-founder of Twitter, announces at Reuters, Twitter doesn’t plan to put out an IPO, because Twitter has enough money for the next 12 months! We’ll see!]
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