Categorized | Featured, Tech Talk

Why Facebook is more like Myspace than the $100 billion dollar company everybody says it is

Posted on 31 January 2012 by Michael

Funny thing about short term memory. Beside the fact that it prevents us from remembering what we ate for lunch or whether or not we remembered to turn the iron off, our short term memories serve to expand our level of disillusionment when it comes to valuing certain “social networks” that are about to go public any day now.

If I hear one more financial “expert” go on in anymore excruciatingly boring detail as to why Facebook is worth the crazy billion dollar amounts that they are claiming, or why Facebook is just like Google, my peanut shaped head is going to explode.

First off. Does anyone remember a little website called Myspace? 6 years ago Myspace was purchased by Rupert Murchoch’s News Corporation for something like $580 billion. That’s billion with a “B”. Last year it sold for a mere $35 million to Justin Timberlake and some media company.

Huge drop off huh? Yeah no shit.

2006 was when Myspace was at the height of it’s popularity. Everybody had a Myspace account from celebrities and wannabe rock bands to your next door neighbor teenage kids. Of course since less people were online back then, it hadn’t quite reached the popularity in terms of numbers of Facebook, but for what it was, it was big for it’s time.

Fast forward to today and Facebook has supplanted Myspace and just about every other social networking platform known to man.

Some, mainly financial geeks who don’t have a clue as to what the difference between an IP address and iPhone is, even go so far as to compare it to Google. It’s not Google. It never will be nor was it every intended to be another Google. Comparing the two in terms of value would be like comparing the value of a Corvette to that of the dealership that sold it and here’s why.

Google provides a service that everyone needs. You don’t have to be a member of Google to use it. You can’t get bored of Google. That’s like getting bored of the road you use to go to work. Facebook is the car that get’s you to work. When you get bored of it you simple buy another car.

People got bored of Myspace and switched to Facebook. You can’t get bored of a search engine. Sure another one may come along and provide better search results, but you’re not going to stop using it out of boredom or on some whim.

Justin Timberlake to the rescue!!!


Facebook is valuable in a completely different way to it’s users than Google is to searchers. When it comes to the internet, search engines are more of an infrastructure kind of thing. No new search engine is going to come along overnight and take its place.

Go ahead and ask Yahoo and Bing. They’ve been trying without much success for the last few years. People who use Google are going to keep using Google for the foreseeable future because it works and gives them exactly what they want.

Facebook users are fickle. These are the same people who just 5 years ago splashed out their Myspace pages with hundreds of 2MB gifs, crashing their friends computers in the process. These same people who were in love with Myspace for whatever reason, fell out of love in just a few short years and found a new spouse with Facebook.

Not exactly the recipe for building an internet empire. That’s like the 50 year old guy leaving his wife for the hot new 20 year old secretary. Oh sure she’s fun for a few years but sooner or later a new hot young 20 year old secretary will take her place, and she’ll be their crying and begging for a Justin Timberlake to come along and scoop her up for a mere $35 million.

Only problem is, I don’t think Justin is really in the market for another washed up old social network who’s best days are well behind it.

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