So as you, dear fifty readers, have heard Facebook sold about 2% for $200 million to some Russian dude(s). Since that’s preferred stock, not common stock, it doesn’t exactly equal at $10bn valuation … but it’s still a lot for something that’s not worth anything.
I’ve offered 1,000 arguments as to why social networks aren’t valuable, because they don’t (none of them) make money, and my mantra, users do not equal profit. Obviously, no one except the people I pay to agree with me, agree with me, so here’s yet another brick in my “get off it, suckers” wall.
Facebook does not create or control anything they can legally protect.
As a media company, FB doesn’t create any content – that’s generated by its users, and it doesn’t control where those users create that content. Where’s Friendster? Where will MySpace be in six months? There’s a reason why Viacom has been around for awhile making money – they create and control something that is legally theirs, and cannot be copied or moved.
There are a lot of great ideas out there that you can’t patent. If someone brings you one, don’t give them money.
Facebook can’t own knowing how fat the captain of your high school lacrosse team is nowadays. Facebook can’t own stalking the twink you met at Movement but only got her first name and hometown. Facebook can’t patent your (my) desire to move up the wit-rankings among your (my) friends with status updates.