• Time Warner Chief says YouTube and FaceBook Over Valued. It’s a Big Leap of Faith

Media companies looking to acquire internet sensations Facebook or YouTube would need to take a “big leap of faith” to pull the trigger on a deal at the valuations of close to $1bn being discussed, said Dick Parsons, chairman and chief executive officer of Time Warner. He said the two most attractive assets available to increase web traffic were Facebook and YouTube. “[But] it’s a tough assignment. Valuations that are put on those businesses that currently make no money are astronomical and you have to have a big leap of faith,” he said.

• About 83% of iPod owners throughout Europe do not regularly buy digital music
  Only one in five European iPod owners regularly buys songs online, new research shows, a signal that the music industry will need to rely more heavily on other ways to recover revenue lost to piracy and illegal downloading.
• Wallflowers leader Jakob Dylan has signed with his father’s label, Columbia Records, after his band ended its relationship with Interscope Records.
• Clive Davis and Courtney Love have teamed up to help revive her floundering career.