I admit it. I do not own shares of Facebook.
But after a fast 40 percent I sold my shares over the next 6 months.
Today, Facebook is a Social Network Monopoly according to Ben Thompson.
Ben pushed out this piece titled ‘Why Facebook Should Not Be Allowed to Buy TBH‘. It is excellent. Please read it. In a nutshell, Ben says the FTC is clueless. It’s worse in Europe. Here is a social network grid Ben has created:
Long story short – ‘social networks should not be allowed to acquire other social networks’.
I am not sure where I sit with Facebook being a monopoly quite yet.
I sent the article to my friend Dan Ramsden who has thought about networks deeply the last decade and is now head of strategy and finance at Stocktwits.
He emailed me back with some notes which he said I could include here:
Thanks… I wonder though if some views will change if/when one or more of the popular networks blows up, which can happen, like MySpace… and especially if his drags others down by association… which could happen to FB. It isn’t inconceivable. Increasingly I think the ones mentioned in this article are at risk because they focus on very personal things, which leads to strong emotional reactions that are not always positive
Dan I both agree that this is where I think StockTwits has a long-term and lasting edge, because the subject is not personal but at the same time hugely engaging and permanent.
If Dan and I are correct, it’s possible for many more social niche, deep networks to develop over time.
Ben is on to something though because Facebook may buy any and all social networks before you (mainstream) ever hear of them.
Also published on Medium.