What am I talking about you ask? Well, I am talking about the social network world, the world that in one side is changing our lives fundamentally, as in the case of the middle east of what is called the Arab Spring, and on the other side is a vicious competition arena were tens of Billions can change hands in a blink of an eye.
For those who did not watch closely, here are few of the last few weeks events:
IPOs with unbelievable valuations. Linkedin’s IPO jumped 80% on first day of trading, only to dramatically fall about 50% the following two week, only to go back to the original high levels almost 1 month later. As of today, July 8th, Linkedin market cap is at a staggering levels of $9.4 Billion. Yes, this is Billion with a big B. Similarly Pandor’s IPO was not to shabby as well and followed similar roller-coaster in its first few weeks of trading.
The second thing that happened is the (almost) complete annihilation of MySpace. A company that at time was competing head-to-head with Facebook, that was just six years ago acquired for $580 millions, was just sold again for the unimpressive amount of $35 million (yes, this is million with very small m). This is perhaps the biggest proof of the small difference between making it in the biggest way possible to closing the business with nothing, or as Milan Kundera would say “the unbearable lightness of being”.
The third development is a formation of new unexpected alliances that allow the big player to take stand and get ready for the final battlefield. Whatever that means.The first one was Apple announced Twitter integration as part of the iOS 5 release. The second one was announced this week in the form Facebook integration with Skype, that in turn is soon to close the process of being acquired by Microsoft, forming a very intimidating alliance of Facebook+Skype+Microsoft.
And the last one is of an organic growth intention. Google announced their third attempt to become a social company with Google+ (and this time they may have got it right). They have the potential of bringing it all together by leveraging the Android mobile operating system and getting very quickly and very seamlessly in front of enormous amount of people. Becoming the default social network for this platform. The same way Apple is hoping to become the default social network of the iPhone/iPad/iPod captive audience.
And in parallel to that there are multiple other news related to local social networks around the world in India, China, Russia, Brazil. All showing potential to give a solid fight to all of the World Wide players.