Online Marketing and IPOs
Aaron Ricadela of Business Week put out an interesting article today called Web 2.0’s Long Road to IPOs. I found this article particularly compelling as it touches upon many points I have been blogging here about here recently such as the recession and having a viable online business model.
In essence Ricadela provides a great summary of where LinkedIn, Facebook and Slide stand, or the “Web 2.0 companies” as he refers to them. The consensus seems to be that none of these sites will attempt an IPO until 2010. Personally, I think LinkedIn is the only one that has a viable business model that would provide any value to go to the street with.
Facebook, Ricadela points has “yet to show they can command a premium for the ads they display” and the same goes for Slide. It is completely ridiculous that Facebook is valued at $15 billion on paper, I would not value the company anywhere north of a billion and even that’s preposterous. Facebook did $150 million in revenue or so last year yet analysts have been trying to tell us they are worth 15 billion. Give me a break!
With the exception of LinkedIn, none of these three sites show any value. As far as I am concerned the Web 2.0 sites that we always hear about in the news hold very little value. It’s premature and irresponsible for organizations to entertain the notion of going public without a viable and sustainable model. The more dot coms attempt to do this, the more it damages the industry as a whole. Too many people in this game to get rich when the focus should be on providing value and let us not forget profitability!
LinkedIn has a lot of upside and is just now starting to tackle international markets, something I do not see with the other in the “web 2.0″ category.
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