Facebook sent Barry Diller and his holding company IAC into a tailspin today announcing a dating feature. The announcement alone created a crash in IAC stock and spinoff Match.com (Tinder), wiping out $4 billion.
Obviously Facebook can do (and does) anything it pleases, but color me skpetical.
Like you and I, they stare at charts and the Match.com chart has been a thing of beauty:
Technically, Facebook did a lot of damage today. Fundamentally, I don’t see the point of it all.
I think Facebook is being lazy.
Alibaba and Tencent have a better global domination strategy right now focused on Ecommerce and banking (this is a great read on their strategy).
Facebook should be attacking Ecommerce and financial services (worth hundreds of billions), not dating, which the original Facebook app already does.
For starters, Facebook could swallow Shopify and Square (including nice premiums about $50 billion or approximately 10 percent of Facebook’s market cap) and really make some bigger companies sweat it out.
Also published on Medium.