Is the Facebook bubble about to burst? Early investors want out by offloading $1billion of shares

[DVTimes]

Early-stage investors and employees are worried the bubble might be about to burst.

A group of shareholders want to offload $1billion of Facebook shares on the secondary market in a sale that would value the company at more than $70 billion.

It would be one of the largest Facebook share transactions to date and show concern that the social networking site?s growth cannot keep pace with its market valuation.

http://www.dailymail.co.uk/news/arti...ok-shares.html

[Emil]

Is there any good alternative out yet? People wont be going back to MySpace...
Unless a good alternative doesn't exist I dont think the bubble will burst anytime soon.

[Deputy Chief Command]

Is there any good alternative out yet? People wont be going back to MySpace...
Unless a good alternative doesn't exist I dont think the bubble will burst anytime soon.

maybe people are just going to get tired of the entire concept all together ?

[lagcam]

I would have cashed in years ago for millions less than they will be. Gotta admire people for not doing that, must have been very tempting.

[jerryb]

The biggest hiccup to FB will be (if the rumors are right) when FB announces it will start charging a monthly fee to be a registered member. If that's the only option, pay or no using it, millions of people will drop out. I personally use it with friends but would NEVER pay to do so ... NEVER. Let them use ads to generate revenue ... not nickel/dime the users. And that's my HO.

[Deputy Chief Command]

The biggest hiccup to FB will be (if the rumors are right) when FB announces it will start charging a monthly fee to be a registered member. If that's the only option, pay or no using it, millions of people will drop out. I personally use it with friends but would NEVER pay to do so ... NEVER. Let them use ads to generate revenue ... not nickel/dime the users. And that's my HO.

lol.. they will never start charging to be a member .. never going to happen .. nobody is going to go with that

[Klen]

The biggest hiccup to FB will be (if the rumors are right) when FB announces it will start charging a monthly fee to be a registered member. If that's the only option, pay or no using it, millions of people will drop out. I personally use it with friends but would NEVER pay to do so ... NEVER. Let them use ads to generate revenue ... not nickel/dime the users. And that's my HO.

No need to charge member,they can offer premium membership instead.

[nextri]

The biggest hiccup to FB will be (if the rumors are right) when FB announces it will start charging a monthly fee to be a registered member. If that's the only option, pay or no using it, millions of people will drop out. I personally use it with friends but would NEVER pay to do so ... NEVER. Let them use ads to generate revenue ... not nickel/dime the users. And that's my HO.

That would never ever happen. They aren't that stupid. Those are just rumors that started floating around after the announcements regarding a payment system in facebook that app developers can use to charge for things. So you can load your account with credits, and make micropayments.
Dumb people interpreted it as if facebook were planing to start charging, and the rumors started floating.

Facebook looses it's value if people you know aren't using it. That would be the result if they started charging. Their userbase would drop by at least 95% instantly. And if you only had 5% of your friends left on there, you wouldn't want to pay to use it.

My guess is facebook will develop their payment system further and eventually compete with paypal and allow micropayments on third party websites, and make api's for website integration.

They will develop a Buy button, much like the Like button, and make it possible for one-click purchases around the web, as long as your logged into facebook. and because they are so big already, they will dominate the market.

Too bad they will never allow adult though. The ease of charging for things via a system where everyone already has an account, and obviously already thrusts the company with their personal information, would make it a lot easier to get people to start paying.

[Paul Markham]

Is there any good alternative out yet? People wont be going back to MySpace...
Unless a good alternative doesn't exist I dont think the bubble will burst anytime soon.

It's not about members. It's about revenue. Yes the more members the more revenue. But does it make enough to warrant $70 billion valuation?

Look at the companies in that strata and ask yourself.

Does FB make the same money and will it continue to?

[ottopottomouse]

Maybe they want to money out to invest in something else?

[SomeCreep]

That Facebook IPO is going to be ugly. It will be the height of IPO hysteria, reminiscent of what took place during the dot com bubble. It's so ironic, how history repeats itself.

[Davy]

Facebook will collapse like a balloon once a P2P-based solution comes out.

[u-Bob]

Facebook will collapse like a balloon once a P2P-based solution comes out.

well, to be fair, any product will/can collapse once a better alternative is available...