

The Second Coming Of The Internet IPO - vdondeti
http://www.avc.com/a_vc/2011/01/the-second-coming-of-the-internet-ipo.html

======
skarab
The writer mentions "other Internet services which are valued well north of
$50bn." I am having trouble producing much of a list: Google, Amazon,
Microsoft (some value is in "Internet services"), Oracle (the "Internet" here
is arguable). Who else?

~~~
ra
ebay / paypal?

------
pmchiu
I disagree with Fred Wilson that a multiple of 25-50 EBITDA is not
unreasonable. I think it's completely unreasonable at this point. Let's for a
moment consider what a 25 or 50X EBITDA multiple means. In the long term that
would imply that Facebook's revenue is 25BN or 50BN (assuming 1BN of revenue
now). Apple's revenue right now is 60BN annually and Google's is a little more
than 25BN. Either of these is fair if you assume that Facebook has a
monetization plan that is at a minimum as good as Google search and at best as
lucrative as consumer products (ala iPhone, iPad, iPod). Right now there isn't
anything to indicate it's either of those.

So a multiple of 25 or 50x EBITDA is done on faith that Facebook is smart
enough to figure it out. Frankly before I'd invest I'd like to see some proof
of that. Right now all I see are display ad's and that isn't enough.

------
acconrad
Valuations are such bull - it's all hype. Nonetheless, if Groupon is preparing
to go public, it's at least worth purchasing on the first day cause you KNOW
the stock will go up.

~~~
arethuza
That attitude is giving me horrible flashbacks to the .com boom.

