Thursday, November 17, 2011

Sean Parker thinks Silicon Valley is in trouble | Digital Media - CNET News

Excerpt from a stark Bubble 2.0 reality check

Q: How does this all play out?
Parker: I think that when the large established players are done going public, you'll see a few companies that are not ready to go public try. And if the market gets frothy enough, a few of those companies, which are too dependent on bubble economics, will go public and you'll start to see those companies going terribly wrong and then you'll see a lot of losses. And when those losses start to accumulate, you're going to see the public markets for technology shut down again.

Q: But the public markets aren't the only option. Google bought 27 companies just in the last quarter.
Parker: Google bought 27 companies last quarter and a lot of them are talent acquisitions, in some cases paying $1 million an engineer. That can't last forever. There's way more startups getting founded now than there are companies than Google and Facebook want to buy.

Sean Parker thinks Silicon Valley is in trouble | Digital Media - CNET News

Post a Comment