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Quick Edit | Tech boom or bubble?

Quick Edit | Tech boom or bubble?
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First Published: Thu, May 19 2011. 12 02 AM IST
Updated: Thu, May 19 2011. 12 02 AM IST
Even as there are fears about a new dot-com bubble being blown some 11 years after the original went pop, professional social networking site LinkedIn said on Tuesday that it would be raising the price at which it will sell shares in its forthcoming initial public offering (IPO). The new sale price values the firm at $4.3 billion rather than the earlier $3 billion.
The LinkedIn IPO follows deals such as the $8.5 billion buyout of Skype by Microsoft and the $1.5 billion investment in Facebook by investors led by Goldman Sachs that valued the social network at $50 billion.
It is always difficult to identify a bubble till it has burst, there is an important difference between then and now. There are now many Internet firms that have robust business models. Think Amazon or Google. Or, closer to home, travel portal MakeMyTrip. The Internet ecosystem has also matured. There is more to valuation than just eyeballs. It could be different this time!
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First Published: Thu, May 19 2011. 12 02 AM IST
More Topics: Quick Edit | LinkedIn | IPO | Microsoft | Skype |