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Facebook Is Dead, Long Live Facebook

Feb 20 2014, 8:36am CST | by

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Facebook Is Dead, Long Live Facebook
 
 

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Facebook Is Dead, Long Live Facebook

The word you hear over and over discussing this $19 billion acquisition of WhatsApp by Facebook is: ballsy.

As in: “I can’t believe Mark Zuckerberg is being so ballsy” or “wow, this is ballsy… he’s really going for broke.”

A couple of years ago here in Forbes, I wrote that Facebook would be “dead” in 8 years.  Not bankrupt dead, but MySpace-dead (meaning MySpace is really around but effectively it’s irrelevant).

So what’s Zuckerberg done since then?  He’s taken mobile revenues from zero to more than half Facebook’s revenues and he’s bought two of the biggest external threats to Facebook’s perch at the top of the social landscape.

If you can’t beat ‘em, ingest ‘em.

Instagram is now off the market for a billion (in cash and stock) or 1% of Facebook’s market cap at the time.  WhatsApp is now off the market for $19 billion in mostly stock (I’m not saying if it’s inflated or not – I’m just pointing out that Zuck is making good use of all the assets the market has chosen to bestow on him at the moment).

Zuckerberg is a student of history apparently.  He seems to have taken Andy Grove’s mantra of “only the paranoid survive” to heart.  He’s also cleverly watched Yahoo pass on opportunities a decade ago to buy first Google and later Facebook itself.  He’s consciously decided to not go down that path.

If there’s any up and coming service that shows promise, the trick is to take it off the market now before these promising companies become market behemoths.

It’s brilliant – really.

Does it show desperation? I don’t think so.  But it shows that Zuck is acutely aware of the ephemeral nature of Facebook’s current leadership.  That self-awareness is a strength, not a weakness.

Is the deal destined to work out?  It’s not clear yet.

The rationale is clearly that WhatsApp is going to continue to grow like a weed and – within a couple of years – will be at over a billion monthly active users.

It doesn’t matter one bit that they made $20 million last year.  What matters is how there are numerous ways to monetize a service with greater than a billion users.

But I saw someone tweet yesterday that Facebook had won the messaging battle if not the war (Jessica Guynn of the LA Times, I believe).  I don’t agree at all and I’m sure Zuck wouldn’t agree.

WeChat is dominant in China, Line is dominant in Japan and many other countries, and Kik is doing great among North American youth.  Although WhatsApp is popular, it’s actually far less innovative in layering additional services on top of their core messaging platform than the others.

But Zuck can change that it he wants.

And, don’t believe for a second that Zuck’s mega-deals are done after this.  As long as he has currency to deploy, it’s clear he won’t be shy to use it.

The old Facebook is dead. Long live Facebook.

[Long YHOO]

Source: Forbes

 

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Update: 11

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Source: Big Government

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Source: Big Government   Full article at: Big Government 23 minutes ago, 6:38pm CDT
 


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Source: Oh No They Didn't!

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Source: Oh No They Didn't!   Full article at: Oh No They Didn't! 2 hours ago, 4:20pm CDT
 

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Update: 9

Ted Cruz Did Not Like Seeing His Name In A 'Misogynist And Profanity-Ridden' HBO Show

Source: The Business Insider

Senator Tex Cruz (R-Texas) did not enjoy seeing his name pop up in last Sunday's episode of HBO's vampire series "True Blood." He responded to the reference in a Facebook message posted Tuesday.  "Of all the places I never thought to be mentioned, HBO's True Blood vampire show would have to be near the top of the list. Sunday night, they aired a misogynist and profanity-ridden episod ...
Source: The Business Insider   Full article at: The Business Insider 2 hours ago, 4:20pm CDT
 

Update: 7

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Source: The Business Insider

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If you speak loudly and you're from the United States, you might want to avoid Peter's Place Cafe in Waterville, County Kerry, Ireland. According to Eater, a man from Northern Ireland tweeted a photo of a sign in the cafe's window that read "No Bus/Coach, or Loud American's [sic]. Thank you." The tweet was sent more than six weeks ago, but didn't go viral until this week.  It must be a great thing in life to have ...
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Update: 6

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Source: AdWeek

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Update: 5

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Source: The Hollywood Gossip

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Source: The Hollywood Gossip   Full article at: The Hollywood Gossip 3 hours ago, 3:55pm CDT
 

Update: 4

Sen. Ted Cruz Blasts 'Misogynist and Profanity-Ridden' 'True Blood' Episode

Source: Big Government

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Sen. Ted Cruz (R-TX) blasted HBO's "misogynist and profanity-ridden" True Blood episode that demeaned "Republi-cu*nt" women and depicted a bloodbath at a Cruz fundraiser at the George W. Bush Presidential Library.  "Of all the places I never thought to be mentioned, HBO's True Blood vampire show would have to be near the top of the list," Cruz wrote on his Facebook page Tuesday. "Sunday night, they aired a misogynist and p ...
Source: Big Government   Full article at: Big Government 3 hours ago, 3:55pm CDT
 

Update: 3

Mysterious Lego pieces continue to wash ashore in England after 17 years

Source: WPIX.com

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CORNWALL, ENGLAND (PIX11) – Lego pieces have been mysteriously washing up on the beaches of Cornwall for the past 17 years. The plastic pieces originated from a shipping container headed to New York that held close to 5-million Legos. According to The BBC,  the Lego container was tossed into the sea when the Tokio Express, the ship carrying the toys, was hit by a massive wave. The captain recalls the container ship rocking 60 degrees one way and 40 degrees in the opposite direction. ...
Source: WPIX.com   Full article at: WPIX.com 3 hours ago, 3:51pm CDT
 

Update: 2

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Source: WPIX.com

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Update: 1

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Source: OKMagazine.com

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Source: OKMagazine.com   Full article at: OKMagazine.com 3 hours ago, 3:10pm CDT
 

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