K@W on $ocial network$
One of the latest Knowledge@Wharton articles is causing a stir in the blogosphere. Here is the piece: Dot-Com Bubble, Part II? Why It's So Hard to Value Social Networking Sites
Rafat is critical of the fact that the folks at Wharton won't take a stand:
On the Knowledge@Wharton site, an unbylined author explores why it’s so hard to value social networking sites. Several Wharton professors look at the numbers, acknowledge that someone is bound to be a winner, but both the subjects and the author say — you guessed it — that it’s too early to tell. “If you have a little bit of money invested in this and you’re already invested in other things,” says Wharton adjunct finance professor John R. Percival. “Frankly the risk is not as big as you think.” In other words, the experts tell us, we don’t really know.
He then asks, "Should this be so difficult?" It is an insightful piece.
After looking at Wharton's numbers and running some numbers himself, Om thinks their point seems to be, "In bubbly times, fuzzy math is the best we’re gonna get."
Technorati Tags: social.networks, business.models, k@w
Thursday, October 05, 2006