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Your argument makes perfect sense when you're talking about real companies, with R&D, marketing, technology and all that. GM buying Tesla for 15% of its worth m
by flyinglizard 13y ago
Your argument makes perfect sense when you're talking about real companies, with R&D, marketing, technology and all that. GM buying Tesla for 15% of its worth might make sense. But in the social space, companies are entirely seasonal, the barriers to entry are none, there's no way to predict user traction or behavior.
I understand this is how Facebook intends to keep itself at the top of the social heap, but with recent valuations (starting at Instagram), it'll be incredibly difficult to maintain this for long.
- frandroid 13y agoFacebook and Twitter are seasonal?
- lancewiggs 13y agoWhere the seasons extend over a few years - yes. MySpace, Friendster, Slashdot, Hotmail etc. were the same.
- shill 13y agoCyclical
- patrickk 13y agoCyclical means they'll come back up. Somehow I doubt that's the case with MySpace, bebo etc.
- chockablock 13y agoYeah but seasonal implies a (yearly) cycle too. Plants that die completelyaway at the end of each growing season are called 'Annuals' (vs. perennials), but I think that term would be too confusing to be useful ;)
- ulfw 13y agoYea like search. See altavista, goto.com, inktomi, google...
- Sivart13 13y agoI am very happy with your argument. I will use this argument in the future.
- mulletbum 13y agoSlashdot? Was this because of Digg?
- andrewfelix 13y agoUsage fluctuates. The value is in the users not necessarily the company or the tech. When users start bailing to another platform what's left?
- jcfrei 13y agoCouldn't agree more. I guess most of us remember the MSN messenger. Back then me and my teenage friends thought it would stick around forever - up until skype came along.
- ulfw 13y agoExactly. So what will they buy next? Snapchat for 50 Billion?