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Monday, March 10, 2014

3 signs Mark Zuckerberg is crazy- MSN Money

3 signs Mark Zuckerberg is crazy- MSN Money

1 comment:

  1. EYEBALLS INDEED ; ...I suppose you don't get to be one of richest men on the planet without being a little bit wacko.




    Now, the psychological profile of Zuckerberg has gotten a bit more complicated with the over-the-top acquisition of message firm WhatsApp for $19 billion. With a "B."




    Can you say dot-com bubble redux?




    In committing 10 percent of Facebook's value to WhatsApp, Zuckerberg is betting his company's future on the success of the deal. It could be his legacy or his albatross, depending on your view.





    I'm betting on the latter and here are three reasons why.





    Profits, not eyeballs, are what matters




    It's been some time since we heard about companies building their businesses solely based on eyeballs. Facebook is now doing just that. They'll worry about profits later. Can you blame them when the market has rewarded such misguided behavior in the past?




    While there have been a few companies that were able to survive and thrive with such a model – think Amazon.com (AMZN -0.41%) -- Facebook's is not likely to be one of them. Is that perhaps why Facebook did the WhatsApp deal?




    There's an air of desperation to the transaction that says "we can’t make it on our own so let's keep buying and buying no matter what the price. Just get the eyeballs and everything will be all right."




    I'm not so sure that will be the case.

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