Some pretty interesting reactions to AOL’s recent purchase of fledgling social networking site Bebo for $850MM. The Wall Street Journal, Seeking Alpha and Condé Nast Portfolio are all skeptics to one degree or another, but to my mind The Economist really nailed the chief takeaway of the deal: social networking is becoming increasingly indispensible to how we interact on the web – but that doesn’t mean it’s a money-maker on its own, worth nearly a billion dollars in this instance. The Economist likens social networking utilities today with free web email back in the 1990s, valuable not for the modest advertising revenue they’re capable of generating but rather for the huge brand loyalty these tools can engender for businesses that make money some other way.We couldn’t agree more at TK. We like the fact that you can interact and learn from other traders and trading experts in our community without sneaky advertisements or other would-be moneymaking schemes getting in your way. Isn’t there enough advertising static out there in the world already? When you’re ready to place a trade, you’ll pay a very modest fee – usually less than 5 bucks – to get a great, fast execution, with the innovative tools and super customer support that complete the experience.
Have an opinion on the AOL – Bebo deal? I’d be curious to hear it. It’s no secret that we’re fans of social networking over here, and we’re always curious to see how this still-new field morphs over time. A nearly billion-dollar deal is definitely something to keep our eyes on, right?
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