Will a consumer recession hurt Silicon Valley?

Yes. I’ve been writing about Silicon Valley turning into “Media Valley.” Nikkei business magazine, Japan’s top business magazine even featured my take on “Media Valley” earlier this year with a prominent interview. Many of Silicon Valley’s biggest and fastest growing companies are media companies. Google, for example, isn’t a technology company. It is a technology enabled media company it publishes pages of content with advertising around it. Google and many other Silicon Valley companies are increasingly best defined as media companies and they depend on advertising. Consumer oriented advertising is a huge business and GOOG et al depend heavily on that business. A consumer recession will hurt the advertising business. It always does. The question is whether online consumer advertising…

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