THE NEW GLOBAL WE.

The Joker

Posted in New by Harsha on August 6, 2008

Here is a piece on BusinessWeek.com about Facebook’s valuation.

I think deal meister Bruce Jaffe (ex-Microsoft) had put together this really stupid deal together among others.

Come on!! I don’t think the idea of Facebook is unworthy of much money, but the monetization of it is what is impossible. I agree with the vision that say in 20 or 50 years from now, ideas like this will be commonplace in our lives like utilities and cars are today (read “The Big Switch”).

But I am skeptical on how money is going to be made. Now you can argue if Google is being smart by putting to work its one trick pony for the millions of things they invest in like Docs, Blogger, Youtube.com etc. I think at the face of it, they’ve gotten into so many things, changed the game in so many ways that they may be able to develop new revenue models in the future. Unfortunately another side of me thinks they are going to fizzle out in 10 years. Who knows? Do you????

Facebook is a one trick pony when it comes to the idea – that is the crucial difference between them and Google. Facebook does not have a revenue stream, forget those ad deals, they are measely. Its like Youtube.com – a money suck and fund-able only by a giant parent company.

I think anyone with a bit of common sense would have figured that Facebook will implode sometime soon. I forget, what’s that age-old saying about common sense?

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One Response

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  1. raja devanathan said, on September 28, 2008 at 8:14 am

    Facebook is definitely getting boring by the day, and personally I don’t think it will even last 10 years. Over the next couple of years, if it doesn’t reinvent itself in some way or another, people will just get bored of its “social utility” concept and move onto green pastors.

    I use Facebook on a semi regular basis, but notice my home page and and walls, and profiles and photo pages don’t change regularly enough for me to keeping coming back. My habits are changing, and I too have noted some of my peer’s habits are changing as well. They are also not accessing facebook as regularly as they used to.

    They have lost the boat in terms of making money from it, they should really sell it to a larger corporation and get their money and make a run for it. Like the founders of youtube did, smart people. they knew very early on youtube was not a site to make money from by ads only.


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