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Facebook Raises IPO Price as Offering Nears

05/15/2012

I feel like I am adrift at sea, out on a lonely island that I may be the only one that feels Facebook’s valuation at over 100 Billion Dollars (that’s over 25X revenue) is way too high.

You can read my food for thought initial post here.

Would you really pay over 25X revenue for a business that the next generation will likely abandon because it’s their parents social network?

I’m pretty much thinking the harder they come, the harder they fall.

We so quickly forget the lessons of yesteryear and we are always on to the new hype.

Let’s see…ad supported business model, huge user base in a completely dominant position online, industry titan, free, ads starting to become too invasive, mismanaged and pissed off customer base, hugely hyped valuation and IPO…I remember AOL, do you?

People don’t feel all warm and fuzzy about Facebook the brand (one too many changes and privacy gaffs), they see it almost as a necessary evil, that they have to be there. Will that feeling really last once the site is overrun with ads?

I am not convinced Mark Zuckerberg himself believes in the future of Facebook. Have you read the 35 Things that could Kill Facebook directly from Facebook’s own SEC filing? Here is the one that caught my attention “Facebook’s mobile platform doesn’t show ads — so the more that grows, the worse for us.”

Can I blame Mark Zuckerberg for striking while the iron is hot? While conditions are so favorable?

In the immortal words of Woody Allen “Take the Money and Run“.

Read the article on Yahoo News here – Facebook Raises IPO Price as Offering Nears

One Comment leave one →
  1. 05/15/2012 10:51 am

    I agree Joel. The IPO is overly optimistic. Facebook has for better or worse become the 800lb gorilla of marketing. The idea of selling is changing as we speak. No longer can a business just a hang a sign in the window and declare themselves open for business. They must embrace social media in it’s multiple platforms(Youtube/Facebook/Twitter/Linked In etc.) The one piece of advice I’ve been giving to my clients is to not take on more than they can handle. If twitter or Facebook alone along with your business website is all you can handle right now. Then grow that presence. Better to be current and relevant in one social media then to be out of touch in multiple platforms.

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