I'm surprised the article doesn't mention the backlash that would ensue. Privacy groups would just love this. As we saw with GMail, people hate their personal information used for targeted advertising. Weather or not it would be rational is irrelevant.
In fact, I think targeted advertising can be win-win if it is done right. GMail does it right, and Facebook is getting better.
And a $100 billion valuation? I don't claim to know much about valuations, but this can't be serious.