It is linkbait because the article doesn't actually argue for his point in any meaningful way or suggest any alternatives, its just a headline written to catch attention, which we both admittedly fell for given our comments here.
The article suggests we can only determine market cap by a larger percentage sale of the company. I think this is a poor argument for a number of reasons:
1) Bid ask pricing is a very well established economic model. In active market, which I would argue Facebook has due to SecondMarket et al, it tends to closely approximate the value of the asset. Certainly there are market or sector wide bubbles, but that is an entirely different argument.
2) The counterexample used is poor. He uses the example of Digg which was almost completely illiquid at the time of that article. Additionally, had Kevin Rose actually wanted to sell Digg at that point in time he probably could have actually garnered that price. The 37signals $100Bn valuation is a straw man argument that is not based in reality at all.
The article suggests we can only determine market cap by a larger percentage sale of the company. I think this is a poor argument for a number of reasons:
1) Bid ask pricing is a very well established economic model. In active market, which I would argue Facebook has due to SecondMarket et al, it tends to closely approximate the value of the asset. Certainly there are market or sector wide bubbles, but that is an entirely different argument.
2) The counterexample used is poor. He uses the example of Digg which was almost completely illiquid at the time of that article. Additionally, had Kevin Rose actually wanted to sell Digg at that point in time he probably could have actually garnered that price. The 37signals $100Bn valuation is a straw man argument that is not based in reality at all.