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Comment by jamess | Hacker News Reader

Call me a bluff old traditionalist, but I really fail to understand new economy 2.0. Companies that have no revenue buying other companies that have no revenue and rejecting purchasing attempts from other companies who have no revenue who would pay for them in shares the value of which scarcely exceeds the value of the paper they are printed on.

Is there some ultimate strategy that the twitters, facebooks and youtubes of this world have that I'm too narrow minded to see but will make these companies bigger than Jesus, or is this the same business model as new economy v1?

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"... Call me a bluff old traditionalist, but I really fail to understand new economy 2.0. Companies that have no revenue buying other companies that have no revenue ..."

Because Twitter is not buying the company.

They are buying the technology and the lead developer, Rael Dornfest. So recruitment & a new interesting code base are the objective ~ http://www.valuesofn.com/blog/2008/11/fork-in-road.html

I've watched 'Values of N' before Rael started on Stikkit ~ ~ http://www.flickr.com/photos/bootload/tags/2006nov08/ after getting a hint that Rael was quiting O'Reilly and I must say it's a very interesting bit of technology. If re-implemented partially at Twitter could "turbo charge" Twitter. I took the Stikkit for a test drive back in 2006 ~ http://www.flickr.com/photos/bootload/291957738/ and while Stikkit had a few hiccups at that time, the service matured well, but the number of users required to build a company was simply not there.

the same business model as new economy v1?

The same, but now with AJAX and Rails.

The previous era's coke and hookers were far more exciting.

(If you think I am joking, please see: Pseudo.com)

DHH is to blame for the economic collapse, not the housing markets.

Heh, even though he stresses charging money for your product.

No, far less IPOs.

Companies that have no revenue buying other companies that have no revenue and rejecting purchasing attempts from other companies who have no revenue

You're probably right about the first two, but not the third. Facebook brought in ~$150m in '07 and is projecting something like $300m this year.

(source: http://www.techcrunch.com/2008/01/31/facebook-finances-leake...)

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