Some people continue to insist, in good bubble fashion, that a $2-billion price for Facebook isn’t all that bad. For example, Mike over at TechCrunch called it “high but not ridiculous yet”.
I like Mike, so I say this out of love: Are you nuts? It’s high, ridiculous, and, okay, highly ridiculous.
Sure, Fox bought MySpace for half a billlion, and sure it has grown nicely since then, but so what? If paying four times as much for a smaller, slower-growing site whose main users leave in lock-step graduating cohorts every year isn’t mad, then I have no idea any more what is.
And Ross Levinsohn over at Fox apparently agrees. Here is what he said on the subject earlier today at a Bank of America investor conference:
“We’re certainly not paying $2 billion for Facebook. If the price was right I’d be interested in it. It’s a great site and I know the guys there well.”
I know, I know … what else would he say, right? Just go right on believing that.