Friday, January 28, 2011
Back to the BASIC!
Thursday, January 6, 2011
Facebook- How real is it?
It is the new year- new dreams, new hopes, new plans, new resolutions! Everything gets a fresh start; so did my thoughts!
The latest news on Goldman Sach’s evaluation of $50bn for facebook made me all the more pondering- that is this virtual world, the phenomena, the experience really worth it all?? Is it for real or a bubble?! Is it amateurish for facebook to go for an IPO and go publicly listed??
I am sure everybody would have his/her view and perspective on the IPO for facebook and I would be glad to read and receive them here
Further to my analysis, I have jotted some of my perspectives and views here on the current situation
#1. The beauty of recession
Todays’ situation in United States is unique. A country where technology, innovation and entrepreneurship has always paved way- a land of opportunities is so much badly affected by the self-spiraling financial meltdown, that the government and people are hell bent on creating new jobs, new sources of income to break it. Today, with Goldman’s investment of $450 mn, a normal tax paying citizen has becomes an investor! Because Goldman- a bank holding company has unfettered access to the federal discounts/federal reserve window which is simply a tax payers’ share!
#2. Facebook’s interest
Today, facebook is riding the wave. It is capitalizing on it popularity and power. Happy to have an investment of $450mn from Goldman Sachs! But is it ready to go public?? Is it ready to be publicly listed? Is it ready to share its books and financial statements to the public? Or will it be dragged into it? If it at all goes for the IPO- what are its plans post the IPO that would attract the public investors? Agree, facebook has changed the world of communication- an enabler in the cultural change. But does it warrant the amount of commercial interest that it is receiving??
#3. Facebook numbers
It recorded 500mn users. But how many are real? How many are active? How many are not used for spamming? The reason we are hooked to spending time of facebook is because we have not found an alternative to pass time. Once an alternative- s0mething like a cool new app on the iphone or a new experience comes, will we cling to facebook???
#4. The bubble
Starting from emails to dotcom to housing to real estate- every sector has been over speculated to a bubble and it has eventually busted. Is social media the next bubble where the investors are speculating? Whats next after social media- green energy sector?!
My take: Ride the wave and do not speculate. If I was at facebook, I wouldn’t agree to IPO. Why do I need to show my books?! And if I were at Goldman Sachs- I wouldn’t repeat the past mistakes of speculations and bubbles
This world needs something of real to sustain its existence
PS: I am sure this post will have a better outreach if posted on facebook. Because this is its point of sell- outreach. Hence, I will post it on facebook ;)