Thursday, January 06, 2011

Goldman Sachs Invests In Dimishing Facebook

Why would the Goldman Sachs Group invest $450 million into Facebook? Is it because it is the most hit and used Web site today. It is because its private clients can invest $1.5 billion collectively, without the SEC's oversight? Or, as it is a relatively small investment for them, allows them to hedge a better position in a modern dot com trend? Is it just putting them in the ideal IPO position?

The Facebook concept is great. It really does allow people to connect and share. But I cannot help but think that it is a trend that has already ran its course.

I have around 500 Facebook "Friends." However, only an handful -- around 10% -- actual post or share their status on a regular basis. A few of them post way to much, namely because they link their Facebook page to their Twitter posts or they use Facebook as if it were a Twitter account.

Facebook, like Twitter, tends to be lots of noise. Sure, we like to keep up with friends and family in diverse locations. but more often than not, I find myself hiding friends because they tend to be "yelling".

Facebook is a trend that will diminish with time. An IPO will bring about its eventual "demise" but one that Goldman Sachs will ride, exploit and cash in on while it is trendy.

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