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segunda-feira, maio 01, 2006

Irrational Exuberance 2.0 ?

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Several million fickle teens + dozens of curious advertisers x reams of breathless press - some perverts = $2 billion, please.
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The ever heady combination of ballooning price tags, youth appeal and gauzy PR signaled to some a second-coming of the late-1990s Internet bubble forming in the fast-growing social-networking and media realm, where tens of millions of young consumers congregate -- and have turned sites like YouTube, MySpace and Xanga into hot new properties for VC firms and titans of old media. Just last week Viacom announced it has dropped $102 million in cash for Xfire, an online gaming community that will be part of MTV Networks.

While neither the power of consumer-generated content nor the marketing cachet of digital communities united around similar tastes is being questioned, there's a feeling that the exorbitant figures being tossed about for Facebook signal some fin-de-siecle exuberance about properties that, though successful at reaching large numbers of an elusive demographic, are untried over the long haul.
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Advertising Age - MediaWorks - Social-Networks' Valuations: Irrational Exuberance 2.0?

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