Facebook 750 Mil in Hand Worth More than 2Bil in Sky
Below is a MRR and PLR article in category Internet Business -> subcategory Other.
Facebook: Why $750 Million in Hand is Better than $2 Billion in the Sky
Summary
Facebook.com serves as a vital communication platform for college and high school students. Despite hopes for a Google-sized valuation, the proposed $2 billion worth seems arbitrary. Zuckerberg and his Harvard team might be aiming high, but the $750 million offer might have been the better bet.
Article
At my workplace, I seem to be the only person with firsthand experience using Facebook.com. Ironically, as the newest employee, colleagues turned to me for insights into this popular college platform. So, let’s delve into the intriguing story of Facebook.com.
In 2005, MySpace was the talk of the town. Rupert Murdoch’s $580 million foray into social networking surpassed all expectations, amassing 23.5 billion page views by February and becoming the Internet’s second most visited site. Naturally, Murdoch's success spurred interest in other social networks.
In March 2006, Viacom made a $750 million bid for Facebook, founded by Mark Zuckerberg. However, Facebook declined the offer, valuing itself at $2 billion. This decision might be a miscalculation, especially given the unpredictable nature of social networking.
Facebook is primarily a hub for college and high school students. Zuckerberg and his team, much like Bill Gates before them, are likely aiming for a valuation argument akin to Google’s. Yet, the $2 billion figure seems ambitious and is difficult to substantiate.
While avoiding an earlier $15 million offer from Yahoo might seem wise in hindsight, turning down Viacom's substantial bid is risky. There are only so many entities capable of matching or exceeding such an offer.
Recent traffic statistics from Alexa.com reveal a decline in Facebook's numbers since March. This drop, possibly due to the cyclical nature of the school year, poses a challenge. After all, students often shift focus during summer vacations, leading to a potential drop in engagement.
The fleeting nature of online trends means a new social network could easily eclipse Facebook. MySpace’s rapid rise serves as a reminder of how quickly fortunes can shift.
Controversies haven't helped Facebook’s cause. At Syracuse University, a Facebook group’s harsh critique led to class expulsions and student transfers. Additionally, after Penn State's football victory over Ohio State, police used Facebook to identify and arrest students involved in unruly celebrations. These incidents, widely discussed among students, highlight potential risks associated with the platform.
Despite challenges, the future of social networking remains bright, and Facebook is far from doomed. However, like many dot-coms, its prime might have already passed, with growth now hinging on acquisition. With time advancing and trends evolving, the threat of becoming obsolete looms large for Facebook. The clock is ticking.
You can find the original non-AI version of this article here: Facebook 750 Mil in Hand Worth More than 2Bil in Sky .
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