Technology columnist John Dvorak thinks Microsoft paid entirely too much for their stake in Facebook. In an article on MarketWatch, Dvorak scoffs at the price MS paid for access to Facebook’s userbase, and derides the the popular social networking site’s audience.
“But this is $300 a head for what are essentially bloggers, duds, poor students and hangers-on. What are these people constantly buying that makes them worth that much?”
Think again, John. Those bloggers, duds, and poor students, especially those poor students, are trendsetters. They buy expensive clothes and the latest gadgets. They may eat ramen before class, but they throw on their designer sunglasses and drop a load of cash on booze after the books are shut. And their example is watched closely by high school and middle school students, who are just as talented at spending their parents’ money.
Perhaps $15 billion is an outrageous sum at which to value a Internet company, but Dvorak’s argument is simply out of touch.
Link via Digital Inspiration. Photo by Randy Stewart.
