Attention Wal-Mart shoppers: Facebook stock is now on sale. If you previously wanted to buy shares of the hottest social networking startup in the world but the $15 billion valuation scared you off, you’re in luck. On aisle 3, existing Facebook investors have rolled back pricing on Facebook stock to bargain basement prices - shares are now available at valuations as low as $3 billion!

In a sign that some Facebook investors are itching to sell while Facebook still has value (or before the financial markets implode), it is being reported that blocks of Facebook stock are being shopped around.

Others Start to Ask “What is Mark Mahaney Smoking”?

In my recent post about the absurdity of the predictions and projections frequently promulgated by research firms and analysts, I focused on the amusing dynamic Yahoo-Microsoft predictions offered by Citigroup analyst Mark Mahaney:

Another amusing example of just how foolish it can be to rely on “experts” was provided by Citi Internet Analyst Mark Mahaney. On February 2, the day after Microsoft announced its bid for Yahoo, he predicted that there was a 60% chance that Microsoft would wind up acquiring Yahoo, noting a 20% probability that the original bid would be accepted and a 40% probability that a higher bid would be accepted.

Yelp Raises More Money for Business Stuff and Parties

TechCrunch is reporting that Web 2.0 local reviews service Yelp has raised $15 million in a fourth round of funding led by DAG Ventures. The rumored valuation: $200 million.

The funding would take the company, which was launched in 2004, to $31 million in total funding. According to TechCrunch, “Yelp says that they will be using the money to expand geographically, add onto their sales team, and establish a second office in New York City.”

I like local reviews services and one could probably argue that Yelp is a decent player in the space. But for a company whose “revenues are rumored to be sub $10 million/year,” $31 million in funding and a $200 million valuation do not make sense.

Where is Your Money Now?

Time Warner shareholders might be asking themselves that question if the rumors around AOL’s possible $200 million acquisition of Where Are You Now? (WAYN), a UK-based social network for travelers, are valid. With $4.5 million in annual revenues and 3.6 million unique visitors in November according to comScore, a nine-figure acquisition of WAYN would seem to provide a disappointing answer: the shitter.

Social Network for Language Learners Raises $6 Million

In my new column, Bubble Watch, I will highlight what I see as signs of the growing bubble commonly called Web 2.0.

Washington-based LiveMocha has raised $6 million in a first round of funding led by Maveron Equity Partners. by PaidContent:

The site offers lessons that users can sign up for, as well as the ability to converse with other users for practice. Members can also offer tutoring services using the site. The site, which launched in September, is hoping to offer an alternative to traditional at-home language learning packages that come on CDs or CD-ROMs.


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Drama 2.0 spikes the Web 2.0 kool aid by providing critical analyses of Web 2.0, its people, its startups and its impact on the world of media. Other topics are explored when Drama 2.0 has been drinking too much 1975 Dom Perignon. Read more about the Internet's version of Keyser Söze here.