Facebook has been getting a lot of press lately and some insane valuations, considering that they have no real way to make money. I have an account, and a lot of my friends do as well, and while they are calling Facebook the "grown-up MySpace" I would have to award that accolade to Linked In - which I actually use professionally.
Twitter seems like a fun little app - probably not terribly useful - and MySpace is swarming with pre-teens and people who either want to be pre-teens or want to have sex with pre-teens. But Facebook... I don't know. Apparently some other people don't know either.
I don't see them pulling any profitable business model out of this. If they refuse to sell they will probably end up bankrupt in a few years when everyone moves on to the next big thing. Then again I am not a big gambler. I would have taken the $1 billion or $1.6 billion and called it a day. That's not a bad return on an idea you stole from some other college kids.
But Zuckerberg is young and probably as stupid as I was at his age. I lost a good amount of money in the first dot-com boom, as a young kid right out of school, with no experience and lots of extra dot-com cash burning a hole in my pocket.
I just don't see these valuations ever being justified. Sure it is the cleanest and simplest social networking site I've seen (I hate cluttered interfaces with animated backgrounds and blinking lights); sure it has the open SDK - which is pretty huge; but how are they going to wring money from that remains to be seen.
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