A new prediction by an analyst says that Facebook will be wiped off the earth by 2020. But wait, not disappear-disappear, it will be there but not as important as it is today.
Before we dwell into this prediction of Eric Jackson, founder of Ironfire Capital. Facebook is here to remain as the social network, it might not be a basic requirement in the internet but Facebook will survive even if it’s social network fails.
Eric Jackson told CNBC in the show “Squawk on the Street”, “In five to eight years they are going to disappear in the way that Yahoo has disappeared”.
“Yahoo is still making money, it’s still profitable, still has 13,000 employees working for it, but it’s 10% of the value that it was at the height of 2000,” Jackson added. “For all intents and purposes, it’s disappeared.”
“The world is moving faster, it’s getting more competitive, not less,” he said. “I think those who are dominant in their prior generation are really going to have a hard time moving into this newer generation.
“Facebook can buy a bunch of mobile companies, but they are still a big, fat website and that’s different from a mobile app.”
So, why would Eric Jackson make such a stupid remark? If his parameters apply for Facebook then the same will apply for ever other tech company out there.
Jackson sees Facebook as a member of the second of three generations of modern Internet companies. The first generation, highlighted by businesses such as Google and Yahoo, served as portals that organized and aggregated the web’s wealth of information. The second generation, most notably Facebook, capitalized on an emerging social web.
The third generation is made up of companies whose sole goal is leveraging and monetizing mobile users.
“When you look over these three generations, no matter how successful you are in one generation, you don’t seem to be able to translate that into success in the second generation, no matter how much money you have in the bank, no matter how many smart PhDs you have working for you,” Jackson says.
“Look at how Google has struggled moving into social, and I think Facebook is going to have the same kind of challenges moving into mobile.”
What do you think about Eric’s prediction?