“San Francisco based social network Bebo, which recently raised $15 millionfrom Benchmark Capital, rejected a £300 million ($552 million) acquisition offer from British Telecom Group “a few weeks ago”, according to an insider on the transaction. Bebo’s asking price? North of $1 billion” Says techcrunch.com
Predictably all the arm chair generals responded by saying its a ton of money take it you now while you still can. Yet others screamed that this is yet another sign of the bubble.
Just like I would be stupid to sell right now, so would Bebo. Unlike facebook they are no where near the max market penetration and there biggest costs are hardware. In the next 18 months processing power will double and with it millions will vanish from Bebo’s operating budget. The other major trend is that advertising is coming online in a big way, and once demographic targeting is introduced into adsense and YPN the value of these sites will triple over night. The web in 2 years from now is going to be completely different then it is today. I really think that the people who sell sites with massive pageviews now will be considered idiots in a few years:)