Yoav Tchelet
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Hyper Inflated, Over Valued – Unsustainable New Media Bubble

We’ve heard much talk in the last few months of a new tech bubble emerging and inflated values on companies such as Facebook, LinkedIn, Groupon and the list goes on and on.

Yes the majority of the companies with inflated valuations are generating revenues, but not quite what their valuation picture depicts. to

The biggest issue with all of this is the over hyping of certain startups and new verticals emerging online such as what’s happening with group buying – being driven by the likes of Groupon.

The problem with the group buying model is that its not a sustainable long term business model – not for Groupon or the businesses that they serve.

Facebook for one, has the potential to pretty much make Groupon a has been – that if it plays its cards correctly with the Facebook deals platform.

Groupon is a bit removed from the social graph and removed from the search universe.

Google’s newest foray into the social scene is still in Beta but having garnered over 10 million users already, may just be the golden goose that Google has been searching for to combat Facebook.

If Google gets this right then it can easily integrate a platform similar to Facebook’s deals platform with its integrated locations/places.

These are interesting times for the likes of the Groupons of this world, the other startups such as LinkedIn will probably survive as they carve out a niche in the HR and recruitment industry in the long term.

Groupon and group buying – I’m very skeptical on this one and don’t quite see the future for them.

Facebook and Google – it’s all theirs to loose now, let the battles begin…

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