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Internet valuations "crazy" says Boo.com founder

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By The Drum Team, Editorial

April 12, 2011 | 2 min read

The founder of Boo.com, the retailer which went bust following the dot com crash of the late nineties, has warned that the values being placed on some of today's online businesses are "crazy".

Ernst Malmsten told the Financial Times that the spiralling valuations were "fuelled by greed". Michael Birch, the co-founder of Bebo, also told the paper that some internet valuations were getting "a bit silly".

Birch said there "is a bit of a mini bubble in Silicon Valley", which he claims has been led by the $50bn+ price tag put on Facebook.

The comments echo the views of billionaire business sage Warren Buffett, who has warned investors to steer clear of "overpriced" social networking companies.

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