SOCIAL NETWORKS (2)

I said in my earlier post that nobody should doubt the value of social networks.

However, what goes up can also go down. Back in 2005, Facebook and Twitter barely existed. MySpace was the leading social network then, and had such a large market share that Rupert Murdoch's News Corporation was prepared to pay US$580 million in order to get its hands on it. However, after mounting losses caused by the flight of users to newer sites, MySpace was sold this week for a reputed US$35 million.

The newer sites are currently worth billions. But will they remain so?

Walter Blotscher