Space Ramblings

Tech Bubble, What Tech Bubble?

In an environment in which Cuil could actually get off the ground, it’s not completely surprising that Friendster could raise 20 million dollars, even though the most elementary investment reality checks should have kicked in at the idea of kicking over 20 million dollars to a social networking company that expired more years ago than the fish in George Clooney’s fridge. But the common denominator for both is the Google magic factor. Cuil was launched with much ballyhooed Google people and Friendster has a new Google CEO and for Wall Street, having some Google executives on board is the magic factor that makes them overlook anything like say a realistic plan for repaying investors or a real world business model. The problem is though that Google is hardly the magic factory that Wall Street seems to believe it is. Google’s management style is chaotic at best, making its executives a very poor fit in any other corporate culture that isn’t based on peer review, and Google has only really succeeded in one area, selling ads for its dubious search results. But the new Google tech bubble, like the old dot com bubble, is based on the idea that people with limited knowledge about the internet really shouldn’t be throwing around millions of dollars on companies they don’t understand.

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