Sunday, February 13, 2011

Twitter, Facebook will Die from Users To-Much-Online Syndrome

Discussions with at least some potential suitors have produced an estimated valuation of $8 billion to $10 billion.

"Are these prices justifiable based on financial multiples? No," said Ethan K of venture capital firm B. Venture Partners. But these start-ups are building social services and have lots of data about their users and "the market is valuing that mightily right now."

Twitter's revenues and valuation have risen even as the company continues to work on ways to translate its more than 200 million registered users into a profitable business. Twitter, which was created in 2006, introduced advertising into its service last year.

I personally would say Twitter will die but 200 million users might disagree. For you to believe my prediction, I would point to the fact that twitter is not significant to survive long term. Sure their tools help celebrities reach out to their fans. Companies communicate with their costumers but what is to stop another company like facebook, google from providing such tool. Within the next 3 – 5 yrs there will be a 50% drop in the number of active users of social media sites. The reason for this likely drop is the fact that people will yearn for more physical-emotional contact. Women will get tired of texting back and forth and choose to experience voice interaction. People will choose to unplug due to overwhelming amount of information, gradually overtime, causing the blue bird to fall to her death. The internet is something that sucks you in till you’re dehydrated and the only way out is to do some offline social activity.

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