Sunday, February 23, 2014

tech space that is out of control: WhatsApp

Steven Loeb had published the article " Was WhatsApp really worth the $19 billion price?"

I agree that for Facebook to have paid such a huge amount for WhatsApp will be the beginning of its end. The complete decadence of Facebook.
People wanted to use WhatsApp because it had no relationship with Facebook, they did not want to give their phone numbers to Facebook. I think many persons will now migrate in droves to another application.

The same for Twitter, because a social network / instant messaging blog based solely on a 140 characters lenght messages, for me, is now in 2014, really obsolete, because you can read Google Plus and Facebook posts on real time using mobile devices like smartphones and tablets.

There is a large dotcom bubble fueled by venture investment funds, investors who are dragging other investors to continue investing until they can sell shares of the company and recover leveraged money, but the last holder of shares is going to lose.
Many technology companies, without having a concrete business model (supposedly will generate revenue from advertising and premium subscription accounts) receive millions of dollars in funding to offer something free, acquiring fastly a large mass of captive users as if they had made them addicts, and then, the exit strategy (for investors) is to get someone to buy the company at a staggering figure, as did Blogger, Fotolog, MySpace, YouTube, Skype, Bebo and others. They are like continually inflating balloons and they need to find a buyer before they explode. If they can not find a private buyer for the entire company, the investors had the strategy of going public, to start trading its shares on the New York Stock Exchange, they turn those pieces of paper (shares) in real money, they get thousands of buyers purchasing lower small parts (shares).

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