“Yahoo’s market cap today is $100 billion. If I gave you $25 billion in cash, is there any one of you who doesn’t think you could reproduce what Yahoo has done to date?” The conversation validated that market valuations had completely disconnected from reality. Although a few people put up a pretty good fight, ultimately everyone acknowledged that they could probably do it. Which meant there were no barriers to entry. And of course there was still that pesky little problem of revenues.
