10 Billion Dollars for FaceBook? Somebody is Smoking Crack!

FaceBook being worth 10 billion or more is the biggest lie since rumors of a Britney comeback.



The hottest business news today is the possible purchase of a 5% stake in FaceBook by Microsoft. I say don’t do it Microsoft! Don’t fall for the FaceBook trap. For 300-500 million dollars Microsoft can create its own social networking site and get a better return on its investment. They need creative people, awesome content, fresh concepts and they would be unstoppable.

I found this, somewhat, funny video on YouTube that illustrate the pitfalls of paying this outrageous sum for a 5% stake in a social networking site. Sites like MySpace and FaceBook are in a fight against time. Tastes in social networks are in constant flux. There are no guarantees that what the young find cool today will be cool tomorrow. That 10 billion dollars valuation for FaceBook is the biggest lie since the prediction of a Britney comeback.

If Google wants to pay this sum, let them. They have money to burn. Microsoft should not go to the table with FaceBook with such a strong scent of desperation. I can smell it from my couch. Business deals made out of desperation never end up well. Examples: Michael Jackson and Lisa Marie Presley, Tom Cruise and Katie Holmes. You get the point.

I have a MySpace, FaceBook and YouTube account. If I was confronted with Sophie’s choice, I am afraid both Myspace and FaceBook would have to go. The future is video social networking. If only YouTube could make their site a bit more flexible, no one would care for either Myspace or FaceBook..