Thursday, December 03, 2009

The Problem with Capitalism

It's all about "value." What is value, I mean, apart from what someone is willing to pay for something? Because if YouTube, which loses almost $500 million a year was worth $1.6 billion three years ago. And Facebook, which makes no money whatsoever, turned down an offer of $8 billion and is valued at $10 billion. Then how can NBC/Universal be worth only around $14 billion?

Forget mere (mere!) profitability. Which entity do you think has a better chance of even existing in 10 years, NBC/Universal or Facebook?


Thomas said...


(But that doesn't mean I think your question was a bad one.)

Jeff Westcott said...

I agree with Thomas, your question is indeed a good one, but Facebook is a lot more likely to still be around in 10 years.

jk said...

Dang, tehy beat me to it: Facebook.