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They say "no" to $6B?! Are these start-ups getting to think a little too highly of themselves?

Does anyone ever point to the 360networks et al. of the late '90s as a cautionary tale? The ridiculous valuations of these companies cannot keep going up and up, much like housing prices leading into 2008. The difference, of course, being that Google is sitting on cash and not debt. But even they have their limit. And the number of companies bidding against Google isn't exactly stretching around the block.

Groupon's cashflow is rumoured to be around $50M/year profit (although what exactly that means is subject to some debate), but it takes a whole lot of "50 million"s to make "6 Billion" (120 to be exact). So, 120 years to get your money back.

Sure, Google could grow their profit, but by that much? How's the YouTube thing working out for Google these days? Made back any of that $1.7Billion yet?

And don't even get me started on what on earth Intel was thinking in paying $7.5B for McAfee?!
 
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