Facebook and Goldman Sachs: Inflating a New Bubble?

More than a decade has passed since Time Warner (TWX) and America Online (AOL) merged in a $180 billion deal, marking the peak of the Internet bubble and beginning a long drought for technology stocks—a drought that has arguably been broken only by Apple (AAPL) and Google (GOOG). Now Facebook seems to be taking the lead in the next wave of tech-stock enthusiasm, with Goldman Sachs (GS) reportedly investing $450 million in the social network, giving the company a theoretical market value of $50 billion and positioning it for what seems like an inevitable initial public offering. That may be good for Facebook and Goldman, but will it be good for investors?


Goldman’s gambit, of buying Facebook shares before they go public, values the social network at a hefty $50 billion

By Mathew Ingram
http://www.businessweek.com/technology/content/jan2011/tc2011013_185170.htm

More than a decade has passed since Time Warner (TWX) and America Online (AOL) merged in a $180 billion deal, marking the peak of the Internet bubble and beginning a long drought for technology stocks—a drought that has arguably been broken only by Apple (AAPL) and Google (GOOG). Now Facebook seems to be taking the lead in the next wave of tech-stock enthusiasm, with Goldman Sachs (GS) reportedly investing $450 million in the social network, giving the company a theoretical market value of $50 billion and positioning it for what seems like an inevitable initial public offering. That may be good for Facebook and Goldman, but will it be good for investors? Leer más “Facebook and Goldman Sachs: Inflating a New Bubble?”