The Best & Worst Money Ever Spent Is The Same Money

Late post on this amid all the coverage, but there is a different angle to Microsoft's 1.6%, $240MM purchase within Facebook.

This is certainly the best money ever spent if you credit every dollar toward keeping Google out of Facebook. Right now most of the money being spent is land-grab money, and in the long run that isn't a bad thing so long as the portals are spending money like VC's invest - you know one in ten will pan out. That one will pan out big, though.

However, because this values Facebook at $15B, more than 50% greater than Chrysler, this is the worst money ever spent at the same time. Chrysler, with all its problems, has physical assets, a history, patents, and all the other things you buy when you buy a business. Of course, web 2.0 folks will retort that Facebook has users and engagement. For now, that's correct. But just as any domestic auto manufacturer will tell you about the younger generation's loyalty...