Facebook and GS tie-up may be unholy disaster (Part 2)


I was reassured to find out that I am not the only person who “harbours concerns” about the future for Facebook:

“…This meme has slowly propagated, and quite a few other analysts have looked at the same; See Douglas Rushkoff and the Reformed Broker, amongst others. Goldman Sachs does not agree with this assessment, as they just poured $500 million into FB at a $50 billion dollar valuation, with an option for another $1.5 billion right behind it.

If and when Facebook goes public, they must monetize their user base — I find it hard to see how they do that without annoying their base of users away. Mine is a decidedly non-consensus viewpoint.

The free web app has to figure out a way to have the site generate revenue and profits from its immense user base. Currently, they generate about $ 1 billion dollars in revenues at about a 25% margin”.

Read full article: 5 Questions for Facebook Investors

Facebook have been “valued” by banksters Goldman Sachs at an outrageous amount but, on a couple of levels, this may be just a step too far: Facebook has already lost some of its appeal. It has become less “personal”, more confusing and complex with the addition of more and more features.    Then there was the underhand way in which the privacy debacle was handled. Facebook are only where they are now because of … Read More

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