Looking for a bubble? Social media ain't it - The Deal Pipeline (SAMPLE CONTENT: NEED AN ID?)
Subscriber Content Preview | Request a free trialSearch  
  Go

Video

Share  |  Reprint

Looking for a bubble? Social media ain't it

Published June 6, 2011 at 4:00 AM


"Bubbles are empty vessels," says Scott Cutler, NYSE Euronext's executive vice president and head of listings, Americas, when asked in The Deal magazine's video roundup if we're seeing a bubble in social media. Facebook Inc., LinkedIn Corp. and Zynga Inc. have significant revenues, revenue growth, operations around the world and "most importantly have executed through the financial crisis, and that's different from the last bubble," argues Cutler. Foundry Group co-founder Jason Mendelson concurs. "As an investor in Zynga, I can tell you there are meaningful revenues," he says. Furthermore, LinkedIn Corp.'s successful IPO on the NYSE indicates investors are "thirsty" for social media, says GSV Capital Corp. co-founder Michael Moe. One note of caution comes from Theresia Gouw Ranzetta: "There is, in my opinion, a bubble in the earlier stages, where companies that don't even have products yet are raising tens of millions of dollars," says Ranzetta, a partner at Accel Partners, which backs Etsy Inc., Facebook and Glam Media Inc. For more on the topic, watch "Mendelson: Meaningful revenues in social media" and "Ranzetta spies early-stage bubble." - Mary Kathleen Flynn

Share:

Meet the journalists



Movers & Shakers

Launch Movers and shakers slideshow

In London, Morrison & Foerster LLP recruited corporate lawyer Graeme Sloan to be global co-chair of the firm s mergers and acquisitions practice. For other updates launch today's Movers & shakers slideshow.

Video

Emerson unveils network power business spin-off plans

The industrial conglomerate plans to spin off its network power business as part of a plan to streamline its portfolio and drive growth. More video

Sectors