And now, Facebook pessimism
The world without Facebook sounds unbelievable, but after its sliding stocks a hedge fund manager has predicted that Facebook will “disappear” in five to eight years.Updated: Jun 06, 2012 21:27 IST
The world without Facebook sounds unbelievable, but after its sliding stocks a hedge fund manager has predicted that Facebook will “disappear” in five to eight years.
According to Eric Jackson, the founder of Ironfire Capital, said, “In five to eight years they are going to disappear in the way that Yahoo has disappeared.”
“Yahoo is still making money,” said Jackson. “It’s still profitable, still has 13,000 employees working for it. But it’s 10% of the value it was at the height of 2000. For all intents and purposes, it’s disappeared.”
Jackson noted that so far there have been three generations of Internet companies. Yahoo, a Web portal, is a great example as an online pioneer.
Facebook then swept in as the second generation with the wave of social media. The third generation is all about mobile, he said.
While this assertion raised a ruckus online this week, other industry analysts wouldn’t be shocked if the prediction comes true.
Facebook has moved to address concerns that it isn’t doing enough to satisfy mobile users, buying Instagram for $1 billion, and hiring the development team behind the Lightbox Android photo app.
Jackson thinks the social network’s mobile woes will continue. “Facebook can buy a bunch of mobile companies, but (it is) still a big, fat website, and that’s different from a mobile app.”
First Published: Jun 06, 2012 21:26 IST