Ruminations on the electronics industry from David Manners, Senior Components Editor on Electronics Weekly.
Facebook Bollox Starts In UK
The Facebook bollox has started. A post last week – A Super-Scam – pointed up the unholy alliance between Goldman Sachs and Facebook to hype Facebook shares before their IPO.
Owing to US legal issues, GS have now stopped trying to sell Facebook stock privately to US investors. So they’re trying to sell it to non-US investors.
Daily Telegraph carried a guest column by Joanna Shields, Facebook’s vp for EMEA.
“The 90′s were all about browsing, the 2000′s about searching but this decade is about discovering things through our friends and our relationships,” wrote Shields, “it’s a shift from the “what” to the “who” from the wisdom of crowds to the wisdom of friends.”
A quite excellent piece of bollox. Whose wisdom have we consulting up to now on issues like spouse-handling, jobs, investments, reading matter, choice of car etc etc?
On Monday, Shields gave a lecture to the British Venture Capital Association.
She talked about “the audacity of this moment in time.” “This stage,” she said, “is perhaps the most important stage of the internet’s evolution yet.”
“It is not longer the wisdom of crowds, it is the wisdom of friends,” she told them.
She talked about fast-growing social networking sites.
She didn’t talk about fast-shrinking social networking sites like:
Friends Re-United (bought by ITV for £175 million and sold three years later for £25 million);
MySpace (bought by News Corp for £375m which sacked half it staff last week);
Bebo (bought by AOL for $850m and sold two years later for $6.5m).
Incidentally, Shields was CEO of Bebo at the time it was sold to AOL.
Social sites depend for their success on the young. The young giveth and the young taketh away – their loyalty as fickle as shifting sands.
Anyone foolish enough to invest in a business which lives or dies by the fashion whims of the young deserves whatever they get.
Despite this admittedly high-standard of bolloxTags: british venture capital association, facebook, goldman sachs, social networking sites, unholy alliance