"I’ve got the conch!" – What now for Facebook?

Posted on May 27, 2008

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Jessi Hempel’s article in the most recent edition of Fortune Magazine – “Finding Cracks in Facebook” – intends to uncover some new foundational flows with Facebook. The article itself doesn’t necessarily reveal any new revelations about Facebook, but further asserts some of the ongoing concerns that those in the technology arena have long had about Facebook (an inexperienced CEO, an emerging firm without a clear revenue growth model, and an extreme market valuation).

As I wrote several months ago, Facebook’s economic value may vastly different from its business and market value. While the company is bringing several new experienced executives on board, I can’t help but imagine that Facebook corporate headquarters at least mildly reflects the tensions in the Lord of the Flies.

While Yahoo!, once an Internet powerhouse, slowly fades into oblivion as a Microsoft acquisition target and under talk of selling off company assets, it would be imprudent to consider Facebook’s market share and daily visitors as validation that the company has assured a long-term future for itself.

The latest scoop has Microsoft considering an acquisition of Facebook themselves – another story unto itself.

In looking at the lack of revenue growth and ongoing struggles with launching new platforms and working with developers, the technology development and appeal of Facebooks seems to be reaching an entropic stage. Perhaps this would be a good time to cash out and start anew with the next idea that is inevitably rolling through the minds of Zuckerman and his cohorts. I only wish I had such decisions to consider in my our career and the opportunites available to him should be nearly boundless.


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