Guide to Why Social (Business) Networking is the Future

I am always skeptical when I here people talk about how much companies like FaceBook, mySpace, LinkedIn (and other social networking websites) are worth. Usually, they talk in the "billions" which puts them in the best class of real estate on the web. Why do they feel so confident in their worth?? I think I have a theory.....

First, I believe the Internet is transitioning back to its root of being a "personal network". For some reason in the late nineties, everything went "corporate" - with brands dominating the experience. Now, we have come full circle, and blogging, videos and even websites are becoming the dominating experience of the web - and the power and influence is shifting back into the hands of the people. Thus, social networking is taking center stage.