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How much are social-media companies really worth?

In the social-media industry, a company's valuation is always a hot topic. But a recent survey shows that those valuations might need to be taken with a grain of salt.

According to a survey conducted by accounting and consulting organization BDO USA, 75 percent of capital markets executives at investment banks do not believe that social-media companies' valuations can be "justified." The survey also found that 62 percent of the executives say that the chances of a second dot-com bubble "is at least somewhat likely."

However, BDO partner Jay Duke isn't so sure that … Read more

Report: LivingSocial moves closer to IPO filing

LivingSocial, one of the major players in the social-buying sector, has hired JPMorgan Chase, Deutsche Bank, and Bank of America Merrill Lynch to oversee the company's upcoming initial public offering, The New York Times reported Friday.

According to the Times, LivingSocial managers have discussed in meetings with the bankers the possibility of raising $700 million to $1 billion in the stock sale. That would give the company a value of $10 billion to $15 billion.

If you're wondering what "social buying" is or if that sounds like a catchphrase left over from the previous bubble era, you're not alone. The company is one of Groupon's biggest competitors, another one of these deal-of-the-day services that offers discounts to users. LivingSocial is just one of the many tech start-ups preparing to test the public markets.

There's a lot of skepticism that many of the companies that have filed for IPOs or are considering them--including LinkedIn, Pandora, and Groupon--can justify their lofty valuations. Groupon has already filed for an IPO and the Times reports that the company's valuation may be as high as $30 billion.

What might add some credibility for the social-buying sector is that Googleand Facebook are competing there now.

Some of the other companies that have gone public or are reportedly considering one include HomeAway, Active Network, Skype and Trulia. … Read more

Report: Groupon rejects Google's offers

Google's pursuit of red-hot social buying start-up Groupon may have come to an end.

Citing two sources familiar with the talks, the Chicago Tribune is reporting that Groupon, a fellow resident of Chicago, has decided to go it alone, passing up an offer to be acquired by Google for between $5 billion and $6 billion. The report suggested Groupon hasn't made a final decision about whether it wants to pursue an initial public offering but might go down that road next year.

Talks had been reportedly hot and heavy between Groupon and Google, always looking to boost its … Read more

What might be on Google's holiday shopping list?

At this point, it's almost embarrassing to be a Web company that hasn't been courted by Google.

Not a week goes by when news doesn't surface regarding Google's trolling the waters of Silicon Valley for a new acquisition; Friday's discussion surrounded daily-deals site Groupon. And for every big fish contemplating the Google bait, there are tons of smaller ones that don't get as much attention but are potentially just as important to Google's overall strategy.

At this point in its history, it's simply easier for Google to let outside firms nurture promising … Read more