Thursday, August 24

A little more heat in the video sharing space this week

Grouper is one of the three dozen or so video-sharing sites, such as, Guba, Instant Media, Veoh Networks, Heavy, and a host of others that have emerged in the last 18 months or so. All do roughly the same thing, with a twist here and there to provide differentiation. And, Grouper is the second video site to be sold this month. The first was online production company Atom Entertainment which Viacom purchased for $200 million.

I despise the hype as usual. Particularly the three title and subtitles on this single article.

"The video frenzy has only just begun"

"It's a sellers' market; Who is next?"

amd worst of all...

"Prices are insane!"

Irresponsible reporting like this is what cause irrational exuberance (as Greenspan put it) during the last net boom.

Luckily there's one HUGE difference here. None of these companies, not a single "web 2.0" company has gone on the public market. VC investment and the search and media companies buying out these smaller companies luckily are a little bit less prone to hype and a little better able to absorb and capitalize on these startup companies then the open public market.

Of course if you're an investor you might see it differently, but I doubt it based on Vonage's performance after it went public earlier this year. It went so badly they've actually been sued.

The video frenzy has only just begun - MarketWatch

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