Valuations of social media companies are starting to resemble 1999, but are is there a tech bubble like back then?
With many recent happenings in the social media world, including Microsoft buying Skype for $8.5 billion, LinkedIn’s IPO valuing the company at $8.9 billion and Facebook’s estimate pushing $100 billion, you might start to wonder if a bubble is forming and about to pop.
For those of you who can’t remember, there was a big Dot-com bubble that hit the internet in the late 1990’s, online companies were booming and lots of them started dishing out massive amounts of money because this hype kept them going. One such notable company was Hotmail. Originally started as an independent company it shortly lost traction and was sold to Microsoft before the company went bankrupt.
Social media site G+, which is a community of professionals has put together a detailed infographic that lays it all out for you.