Hot on the heels of an announcement that growth in internet advertising is slowing down, Yahoo! is thinking about paying $1 billion for Facebook. Fine. NewsCorp bought MySpace, and that is looking like a good decision, but I suspect that the executives who are negotiating these deals are more than a little bit concerned about this:
The danger of building a business around networking sites -- which also include Friendster, Bebo and myriad smaller players -- is the fickle nature of their consumers. As the Internet has sped up the life cycle of success and failure, it is possible some of these sites will flame out as their young devotees flock to the next thing.
Possible?
Let's play intertemporal executive: in 2010, will MySpace and Facebook seem like eBay and Google today? Or will they seem more like Alta Vista or Globe.com?
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1. Posted by Justin on September 21, 2006 @ 13:51 | Permalink
Facebook is already going through some turmoil because of their recent personal newsfeed idea. Through the news feed, ironically, I've noticed that lots of people I know are joining groups declaring their dislike for the invasion on their privacy. One particularly good way to torpedo your website is to give out people's information without proper notification. I think they're in trouble.
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