Here we are ten years later and this guy talks about how this time its "DIFFERENT", yep the same old saying that goes around every time a bubble is getting bigger. He says this is not a BUBBLE but a real boom. So based on the fact that google offered $6 billion for a company only 2 years old and groupon rejecting that offer that now this has become a new and improved bubble where companies that actually make money can ask for billions more than what they think they are worth. Anyone placing billions in value on these companies is a joke. Google is another one, over 90% of their revenue is derived from advertising just like every 2.0 start up. Groupon's Rejection of Google Marks a New and Improved Internet Bubble, Says James Altucher Posted Dec 10, 2010 02:28pm EST by Peter Gorenstein Related: goog, yhoo, ^ixic, qqqq, xlk Groupon's recent decision to pass on Google's $6 billion buyout offer shocked many inside and outside of Silicon Valley. Observers were flabbergasted at the valuation Google placed on the daily coupon website and were even more astonished the startup spurned the deal. Groupon is not as crazy as one might think, according to James Altucher of Formula Capital. "Why would they take that if they're growing 50-100% a year?" he asks. This is the dawn of a new and improved Internet bubble, Altucher says. Unlike the bubble of the late '90s, though, this one is based on fundamentals, not irrational exuberance. "These are phenomenally fast-growing, earning-positive companies," he tells Aaron and Henry in this clip. "It's not just a bubble, this is a real boom." With businesses built on real earnings and top line growth, this new batch of Internet phenoms (Facebook, Twitter, LinkedIn and Yelp) will soon reinvigorate the IPO market, he predicts. "This is not 1999. This is 2010 -- it's different." The money created from the IPOs will also feed a new round of capital into Internet startups, helping to perpetuate the cycle, he believes.
it's different that the offer was cancelled.. google shareholders didn't want the deal and google management back off...shareholder vigilante...it's not like in 1999 when management can do whatever they want. embezzling cash from company shares or cash to buy useless hyped inflated companies. yahoo bought broadcast.com ...management of these companies aren't like the 1999, since enron and now more than ever shareholders aer green beret shareholders or active shareholders and will object to what management does....management don't have authjority to make purchases with shareholder approval. or embezzle funds without shareholders voting on it.
http://www.j3sg.com/Reports/Stock-Insider/Generate.php?DV=yes&tickerLookUp=goog&Submit232=GO Lots of selling.
Groupon is a risky buy. Its an all or nothing bet. Google was interested in it because they felt their is a small risk people will start going there for a coupon before they go anywhere. Making it the most profitable search engine. It needs to work on technology to ease the coupon process if it wants to make this viable. I wonder what Google thought the risk of it catching on was. I do think 6 billion was too much to spend on this risk though as they could still mock the idea and retain their user ship. Search engine users can be surprisingly loyal. So I definitely think Groupon made a horrible decision turning down that deal.
Google in my opinion is getting irrelevant. I go there and 9 out of 10 times, all it does is it take me to wikipedia, amazon, etc.
I think all those companies are going to be more important and powerful as web 2.0 comes online. We are going to be shifting bandwidth from a large percentage being hardwired computers to other platforms. Google is getting into some growing fields. Google TV and its dealings with Verizon are good examples. It is also a vast informational resource that I believe will have a place in America for a while, even if in a less direct way.