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.