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FX.co ★ Buffet Warned About the Social Nets Overestimation

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Forex Humor:::2011-04-04T10:21:00

Buffet Warned About the Social Nets Overestimation

The American billionaire and investor Warren Buffet warned the investors to be cautious investing in the social nets. “Most of them are overestimated”, - Bloomberg quoting Buffet.
Buffet said that it is rather complicated to determine the real cost of any social net, as prior to the Initial Public Offering the Internet startups try to evaluate them maximally high.
Although, Buffet did not mention any concrete companies, - as New York Magazine stated, for some time past there have appeared a few estimates of the largest social nets and Internet-companies. Thus, on the secondary market Facebook was appraised at 65 billion dollars. In spring 2010 the analysts of Private Equity Data Center stated that “fair” price of Facebook may reach 35 billion dollars.
In February this year Twitter was given a value of 5-10 billion dollars. The representatives of Twitter service contradicted this information calling this appraisal excessive. Referring to Bloomberg, the service of Groupon collective discounts which is to enter the stock exchange is evaluated at 25 billion dollars. Google was assessed at 36 billion dollars before entering the stock exchange.

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