eyerot

This is EXACTLY what we saw happen in the late 90’s. Startups are being acquired in massive deals that overvalue small business in an emerging market. Those acquisitions will embolden venture capitalists, and tons of money will be converted to vaporware. In the end, young developers and code monkeys will be left holding the bag, while the ‘CEOs’ of these potemkin companies buffer their resumes and make off with a few million dollars to float them to the next bubble.

It’s a bubble, kid, whether you recognize it or not. If you haven’t seen one before, hold on to your hat.

True. But that kind of business model has a shelf life. If they are banking on a single franchise to power the company, I guarantee that Angry Birds will be played out within a few years. They will move into branded retail items, oversaturate the market, and end up eating unsold surplus, burying truckloads of Angry Birds underoos in the middle of the desert. I’m not saying that they won’t make money, but I think they would do better to ride the wave with an understanding that they are trading in a fad.

The popularity of the game is understandable. But an ipo?

Coming Soon – Dotcom Bubble Part 2: The App Bubble