Think Media

Skype is Ebay's downfall

What is Meg thinking?! I had my doubts about MySpace/IGN valuations for Fox... but Skype!  Perhaps someone can tell me what I'm missing: Skype, founded by two guys who can't step foot in the US because of Kazaa; exploding number of subscribers, but gees... it is FREE!  So that should be no surprise...  $2.6bn-$4bn for a business that's 2 years old and finding a business model.  That's double or triple the entire budget Murdoch has to build his Internet empire. 

Ebay's official line is as follows: 1) Skype brings in new customer base, and 2) Skype offers its existing customers a valuable resource.  On 1), it's not like eBay is an unknown brand in this day and age; and 2) so what? 

Very perplexed.  I'd have to say though, that I've always admired Meg Whitman...  She's probably seeing something I'm not.

Defining Blogs

One of my favorite bloggers, Jeff Jarvis, recently wrote a short piece which prompted me to think about the definition of blogs.  Jeff titled his piece Defying Definition, proclaiming that "Blogs are whatever we make of them.  Defining "blog" is a fool's errand."  Looks like I'd be the fool today!

I've already attempted once at discussing what blogs are in my previous post, although I never gave it a precise definition.  While I was thinking about it, I came across BlogCn.com which explained blogs using the diagram above.  Reading clockwise from top, it says: publishing, self-expression, communications. Expanding from it, I came up with the followings:

A blog is a personal website created (using a simplified template) for purpose of publishing, self-expression, sharing and communications. 

I debated as to whether using a template is a condition for blogs - after all, the lines between a blog and a personal website is increasingly blurred.  This also doesn't cover corporate blogs; although I'd like to think of corporate blogs as just another marketing/customer communications tool. 

Image Credit: www.blogcn.com

Is Alibaba a hype?

I must admit I've never visited Alibaba's site before Yahoo's acquisition.  Which must be surprising since it is, after all, valued at a whooping $2.5bn!  And that's a lot of money, esp. for a Chinese Internet start-up. 

After spending a good 15 mins on the site, I must say I'm most impressed.  While I can't comment on the valuation without more information), I must say it deserves to win every one of Forbes' "Best of the Web" Awards.  If you haven't already, go check it out!

What's good about Alibaba:

• The design, feel and usabilty of Alibaba.com is on par and perhaps even superior to the likes of Amazon and eBay.
• Alibaba.com connects the world in a real and meaningful way; and it delivers with simplicity.  On the site are listings of products and contact information.  No registration, no credit card, no PayPal. It's your new and improved Yellowpages.
• The auction arm, Taobao.com, is really an e-commerce site for merchants.  Comparing eachnet.com and taobao.com; it is not difficult to understand why the former is attracting traffic...  Again, it's strength lies in usability and simplicity.

What could pose a problem:

• Management - How would you motivate someone like Jack Ma, who literally hit the jackpot?  With his payout, he (and his future generations) can live like king forever in China...  Founders cashing out is always a headache.
• eBay vs. Yahoo - If you read (and believe) the article on WSJ, you'd get a sense that Alibaba emerged as a "winner" from a chicken fight between eBay and Yahoo.  It's great for the founders to cash out, but is it the best solution for the Company in the long run?
• Potential red flag - Why is the company not holding out for an IPO?  Rather, why is it not issuing IPO instead?  Baidu proved that the equity window is open...  Is there something we don't know?

Nobody knows how the Internet will evolve, and particularly in China.  Hence, nothing is a sure bet.  But one thing is for sure: Jack Ma found his treasure.

Image Credit: http://www.alibaba-bb.com/Accueil.asp

Google Mania

The current craze about Google suggests a 2nd wave to the Internet boom.  Same sentiments apply: Google is indestructible, it revolutionizes the Internet, and yes, it can crush everyone and anyone in its way.  Oh, and btw, we don't know exactly how it can sustain the growth, but we'd give it the benefit of the doubt.  Enthusiasts will tell you that Google is the new Microsoft, the new Berkshire Hathaway.  I beg to differ... and of course, I could be very wrong.

I'd be the first to admit that I love Google's products - I use Google Search religiously, I was in awe to see Google Map (how about overlaying subway lines on top?!), and I thought Google Answers and Google Images were ingenious.  What lies in its core is the rare ability to innovate consistently and execute with needle-sharp focus.  It's most valuable asset? - People.

Here is where Google is walking on thin ice - With the lure of an IPO removed, and the weight of being a public entity weighs in, can Google retain the best entrepreneurial minds?  Will employees remain focused and dedicated when and if market sentiment shifts to the next big thing?  Can it contain its oversized ego or will it be tainted by arrogance and complacency?

The test will come when the company hits a bump down the road (which, I'd argue is inevitable for any growth company).  I believe then, Google will find itself as vulnerable and destructible as any.  In the meantime, I'd download Google Earth and view my apartment from space.

Image Credit: http://www.wla.lib.wi.us/waal/newsletter/211.html