I just saw this article at NYTimes . I don’t understand it. Are we back to late 90s? This type of valuation is a signal of late 90s valuation which cannot be justified PERIOD. We first had E-Bay acquiring Skype @ ridiculous valuation and then righting it off. Most likely Microsoft will write off this investment in a few months as well. Given the cash position of the MSFT, this will have little impact on their bottom line. But this completely distorts the market space for near future acquisition and startup activity. The VC money flow starts diverting on “.com” and starts drying off from infrastructure where such valuations are still not there.
I loved late 90s. Lots of people made a lot of money. But I was just too young at that time. May be if MSFT/Yahoo/Google keep fighting, I will be able to make some money in late ’00s 