Wednesday, September 26, 2007
Facebook Could Burst Web 2.0 Bubble
The web is awash in rumors that Microsoft or Google might buy into Facebook and that the company's value could be as high as $10 billion. I've always been skeptical of Facebook's long term prospects, and Ovum principal analystDavid Bradshaw is in agreement, according to e-mailed comments:
"There are some problems with Facebook, for instance the current legal action between the founder and his former room-mates over the alleged theft of intellectual property, the increasing concerns over protecting children against 'grooming' by paedophiles (though Myspace with its younger audience seems more at risk here), and the increasing hostility in corporations to employees using social networking in work time - to the extent that some are now blocking access. Longer term, we believe that social networking sites have to evolve further. Users need much better privacy controls, for example to protect against identity theft and stalking.β
He doesn't hold back in stating Facebook as being more evolutionary than revolutionary.
βIt's therefore my view that Facebook is no more than a step along the way and that there's something further to come. Maybe we need bubble 2.0 to burst before we can get to that - but let's hope not.β
When this bubble bursts, it will leave disgruntled venture capitalists and angel investors in the wake, not average investors. Pride comes before the fall, so this is a proud moment in Web 2.0 history.
Posted By John Gartner at 09:58 AM
Permanent Link: Facebook Could Burst Web 2.0 Bubble
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