Thursday, January 6, 2011

Is Facebook Just the Beginning Of Another Internet Bubble? - CNBC

Is Facebook Just the Beginning Of Another Internet Bubble? - CNBC
Remember Webvan? The online grocer, whose initial public offering in March 2000 was among the most hotly anticipated during the dot-com boom, is now viewed as one of the greatest disasters of the era.
Facebook

Fast forward 11 years and the feeding frenzy around Facebook and its exponentially expanding valuations are conjuring fears of a Bubble 2.0.

Goldman Sachs bankers have offered their private wealth clients less than a week to decide whether they want to hand over $2 million apiece for a sliver of the Web darling du jour: Facebook at a $50 billion valuation.

For one Goldman [GS 172.21 -1.79 (-1.03%) ] client, who was expecting a 100-page financial document on Facebook to be hand-delivered on Thursday, hours before the deadline to invest in the company—the whole thing "felt a bit like 1999."