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Facebook in trouble?

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It seems as though the Facebook we all know and love is in financial trouble. The only thing that may help it, is if Microsoft buys it out. Would this really help? How much do you think Facebook can improve if bought out by Microsoft?

Why Microsoft Should Buy Facebook

Facebook is in trouble and Microsoft can solve those troubles, at least for now, by taking over the company. Yes, it is hard to believe that a company growing as rapidly as Facebook is growing should be in trouble, but it is.

No matter how Facebook tries to position itself to earn its living someday, it runs afoul of its users. Thus, Facebook is a classic example of a company that loses money on every sale, but "makes it up in volume."

The things Facebook must do to turn itself into the big moneymaker that venture capital funding demands will, I predict, turn it into just another MySpace clone--in the sense that MySpace is run for the benefit of advertisers, not its users. Which is why many adults who started on MySpace moved to Facebook in the first place.

Facebook already has credibility problems stemming from the types of advertisers it mostly attracts. How is it that every Facebook ad seems to be promoting a dubious scheme of some sort?

Microsoft does not need for Facebook the make the huge profits its current financing requires. Microsoft could buy Facebook and just run nice, low-impact Microsoft advertising and do just fine. Alternatively, it could accept advertisers very selectively and, over time, create an environment that users might actually accept.

This is a case where I trust Microsoft, in its kludgey "be all things to all people" way, to do a better job of looking after me than a bunch of Facebook folks still infected with start-up fever and expecting Googlesque returns.

If you just take the pressure off Facebook management to quickly turn the service into a big money maker, I think they will ultimately find a way to make it an even larger profit center (for Microsoft), without losing perhaps half to three-quarters of the Facebook user base in the process.

The problem with Facebook as it currently exists is that it was not designed, from the start, to be a favorable environment for advertisers. Rather the opposite. Facebook was until recently so customer-focused that it developed a wonderful user interface that left little space for advertising or other ways to earn a buck.

Changing Facebook to make it more ad-friendly is what has its customers so upset. Each of the big Facebook conflagrations has been somehow ad related: First, ad beacons; next terms of service; post recently, the new layout. I am sure the Twitterization of Facebook falls in there somewhere. Twitteron Facebook is pretty disgusting to look at.

I repeat: If I want Twitter, I already have it. I liked (in the past-tense) Facebook precisely because it wasn't Twitter.

The recent discussion on Facebook's blog about changes to the user interface does not seem to be aimed at solving these problems. To my reading, they are just dressed-up explanations of what Facebook was planning to do anyway.

It may not look like it, but even as it experiences huge growth, the Facebook many of us know and loved (past-tense, again) is in deep trouble. Microsoft can do itself and us a favor by purchasing Facebook and giving it a chance to be the user-friendly and profitable company I know it can become.

Read this article here.

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Smartmom's picture
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Re: Facebook in trouble?

wow I didn't know facebook was in any trouble. I guess its only a matter of time that they ads will be all over it like myspace and they will be promoting bands and anything else they can. I have a facebook and a myspace (along with a twitter) but to be honest I do like myspace better. I like that you can customize it. Since I'm a visual person I like that I can make it pretty. However I do believe that facebook is safer as far as safety is concerned not that I trust it or any site.

OH FYI if you use adblock and some of the blocker subscriptions ( Rick752's list) you really dont see the ads. I see very few ads. If you dont use that list click on the link above and add it to your subscription list - you will love it.

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Re: Facebook in trouble?

I also preffer myspace. I can't stand it when people act like I am less hip or less mature for using myspace over facebook. I am surprised that they are having financial difficulty it seems facebook has had a ton of press lately. I've seen it in magazine articles aol news articles, etc. Each time it is some uber hib thirty something telling how facebook has changed the way they live for the better and telling us all how we need to run off and get on the facebook bandwagon. Maybe making facebook appeal to a more mature audience has turned off the youngins who made the site popular in the first place.

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Re: Facebook in trouble?
I used to be a MySpacer nonstop....but facebook grew on me. Sometimes I prefer it to MySpace. And other times I prefer MySpace to Facebook. I can't get rid of either one of them. I do believe Facebook is a bit more mature, and I use that to network with people that can be considerably helpful. I MySpace to keep in contact with everyone else.
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Smartmom's picture
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Re: Facebook in trouble?

I use facebook more for family and friends and I keep that one pretty locked down for privacy reasons. I also have some family pics on that one.
My myspace, well because I'm a mobster junkie I don't really have any personal info on it. Not to mention I have a ton of friends on it so its more or less to screw around with but I actually enjoy it more. On that one I pretty much will accept anyone as a friend there. The only pics on that one are a few of me and OMG some of the comments I get on them *giggles* one guy called me a "cougar" :rollinglaugh:

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Re: Facebook in trouble?

I skimmed the articles, where does it actually state that Facebook is in financial trouble?

I bet they are rolling in dough actually.

Phoenix_Oasis's picture
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Re: Facebook in trouble?
The articles is saying that Facebook is being forced to take on new sponsors which will turn Facebook into something entirely different. If, Microsoft buys them out, they could keep their old look without so many ads. If they weren't about money, they wouldn't have to take on so many sponsors when they can have one really good sponsor.
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Re: Facebook in trouble?

Facebook is a pretty neat site..but I like myspace as well. Unfortunately, the majority of my friends moved on to Facebook.

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