Skype/MS Deal Justified

In my previous posts, I mentioned how social media companies such as Facebook and Linkedin comes with a huge price tag well above its fair value based on what investors are willing to fork up for them on the secondary markets. This exuberance extends well beyond social media companies onto other technology companies as well. However, fair value is measured differently among various investor classes. Based on current valuation, Facebook and Linkedin maybe overvalued for individual investors looking to buy and hold them for a period of time but for other strategic investors, it may not be so....