It is interesting to see the formation of the Web2.0 bubble as it grows bigger with todays announcement of
1. Google buying JotSpot(A wiki based application development company) who share Google's vision of Online information collaboration
2. Wired buying Reddit (A social news site)
The financials involved in both the deals have not yet been disclosed . All these Web 2.0 companies places the user as their top priority and their contents are mostly driven by the users. Once they grow up to have a decently large user base, they are being bought by other big players, like myspace being bought by Newscorp, youtube by Google and today jotspot by Google and Reddit by Wired. These big players especially Google's revenues are primarily dependant on Ad's. Nearly 99% of Google's revenues are Ad(vertisement) revenues. I thought that the Ad industry might be comparitively small enough forcing Google's Ad revenues to stall. But I was thrilled to read that $267 billion was spent on ad's last year and online ad's had just a small pie of 4.7%. These statistics looks convincing for the Web2.0 Bubble to be alive for sometime but I am sure itz not far from bursting.
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