> Not entirely, no. However, at present what you're seeing is investment in
> the expectation of an increase in share price irrespective of the underlying
> value of the business.
>

You're making gigantic assumptions here. It's perfectly OK to establish a
company SIMPLY to sell it at the earliest profitable opportunity to another
company. You can't walk a mile in the Valley without stumbling upon a
business just so constructed.

Now, does that immediately make them an MLM proposition? Who are you to tell
founders and/or shareholders of a company how they should get to their
payoff day?

If the company was constructed to sell, then that's what it's going to focus
on. That's Business 101. I have no idea what the founders and the subsequent
shareholders of YouTube, Skype, MySpace, Bebo, etc actually wanted, but I'm
fairly certain they are satisfied with what they have achieved.

Google, eBay, News Corp, AOL didn't quite get their money's worth and
couldn't make lemonade? How is that the fault of the acquired companies, as
they got satisfaction?


> the fundamentals of the business...
>

...is what others are willing to pay for it, not for uninvolved parties to
pontificate on.

As I previously said, what success means to one company may not necessarily
mean the same to an acquirer that may have entirely different metrics,
concerns, business models, etc.

Google, for example, doesn't focus on making money from services, and the
vast majority of its revenue comes from advertising. So acquiring the
world's biggest social network in FaceBook may mean, business wise,
something different to Google than FB or some other company. Google may have
entirely different capabilities of monetizing that network than FB. You may
think FB's business fundamentals are not there, because you're narrowly
stuck in FB-as-an-independent-company model, whereas Google may have far
different ambitions with FB.

You're seemingly blind to network effects, which is at the heart of many
successful online businesses.

-- 
Kontra
http://counternotions.com
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