Wizards of bullshit: How Forbes turned $6.5 million into $20 billion

Re:Wizards of bullshit: How Forbes turned $6.5 million into ... by gojomo on Wednesday June 29, 2011 @02:12PM (#2710541)

I'd love to see a similar DHH takedown of Groupon's valuation. And then Jason Fried, Groupon advisor and former corporate director, could refute it!

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Re:Wizards of bullshit: How Forbes turned $6.5 million into ... by dhh on Wednesday June 29, 2011 @02:34PM (#2710631)

I wrote a much more detailed takedown of Groupon's evaluation, in fact. You can find it here: http://shortlogic.com/post/6142108636/groupon-ipo-pass-on-th...

If this stuff is your flavor, I also wrote one on Pandora: http://shortlogic.com/post/6586713689/pandora-should-be-trad...

Enjoy!

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Re:Wizards of bullshit: How Forbes turned $6.5 million into ... by gojomo on Wednesday June 29, 2011 @04:48PM (#2711238)

Thanks, I forgot about that. It should be at 37signals! :)

I agree with you on Groupon as much as I disagree on Facebook. Groupon has a nice gimmick that's easy to copy and has been fueled by novelty and unsustainable incentives – and in my personal experience, even some outright corporate dishonesty.

Facebook has strong lock-in effects and unique targeting capabilities. On any screen in any net cafe worldwide, you're likely to see many people using Facebook. It was worth more then $30B last year when you dismissed that valuation based on a 3% investment, it has a good chance of being worth more than the $70B suggested by multiple small private transactions today.

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