Kontra,

I'd hate to take up any more of your time pontificating about concepts and
ideas to which I'm blind. I think we're a long way from the original point
of this thread, so I'll respectfully agree to disagree and move on.

Regards
Steve

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

> > 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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-- 
----------------------------------------------
Steve 'Doc' Baty B.Sc (Maths), M.EC, MBA
Principal Consultant
Meld Consulting
M: +61 417 061 292
E: [EMAIL PROTECTED]

UX Statistics: http://uxstats.blogspot.com

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