Kontra,

You're confusing the distinction between success for the individuals
(founders), and the success of the *business*. I'm referring to the latter;
the former is irrelevant to what I'm saying with respect to the business
model.

Regards
Steve

2008/9/23 Kontra <[EMAIL PROTECTED]>

> > What you've seen to-date is conditional success
> >
>
> All FB needs is a SINGLE acquirer to purchase them. Just a single metric:
> one company to buy FB. Just like Skype with eBay, MySpace with News Corp,
> Bebo with AOL, etc.
>
> When Google bought YouTube it certainly wasn't profitable in any way and it
> had a huge copyright cloud over its head. Chad Hurley and Steve Chen had a
> $1.65 billion payday. YouTube STILL isn't profitable and is being sued for
> $1 billion.
>
> You think either Google or the YouTube folks are complaining? You think
> Niklas Zennstrom and Janus Friis are worried if Skype is a "fad"? You
> really
> think Bebo founders are crying over $850 million? (I may think Falco was a
> fool to pay that much for Bebo (or Witman for Skype, for that matter), but
> that is NOT the point. We're talking about a company's ability to get to
> payday, not if the acquirer was prudent. In that metric, whether it is 1998
> or 2008, scale always matters. There are entities always willing to pay for
> scale. AND they don't have to use conventional metrics you cited to derive
> value out of that scale either.
>
> You're not going to get scale if your intention is solely to be profitable
> (37Signals) but you're not likely to get acquired unless you have scale. So
> your ability to get to that big payday is directly proportional to your
> ability to scale. FB has scale. You do the math.
>
> --
> Kontra
> http://counternotions.com
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-- 
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Steve 'Doc' Baty B.Sc (Maths), M.EC, MBA
Principal Consultant
Meld Consulting
M: +61 417 061 292
E: [EMAIL PROTECTED]

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