Rupert Murdoch predicts fall of Facebook
Rupert Murdoch has warned Facebook that it is likely to go the same way as the former social networking giant MySpace.
On Friday, Murdoch took to Twitter to air his thoughts: “Look out Facebook! Hours spent participating per member dropping seriously. First really bad sign as seen by crappy MySpace years ago.”
Murdoch’s comments come almost a year to the day since Facebook’s underwhelming IPO.
Recent reports signal a decline of Facebook in many countries as it sheds millions of users each month – losing six million US visitors in March alone, according to analysis firm Social Bakers.
Facebook currently has a market capitalisation of $63.1 billion, which is significantly below its value at IPO.
“It’s been a long year for Facebook since the most avidly awaited IPO launch of the decade and many shareholders must be wondering what all the fuss was about as they count their losses,” said Paul Thompson, managing director at mobile advertising technology company BlisMedia.
“In the last year, Mark Zuckerberg has definitely become a more polished presenter and is finally growing into the role of CEO of one the world’s most famous companies. However, except the launch of Facebook Home and a bit of housekeeping around the site little innovation of note has emerged from a company flush with billions of cash to invest in R&D or acquisitions.”
Analysts have suggested that Facebook has already hit its peak, just nine years since it first came to life. Research conducted in the US by Pew Research Centre found that 28% of the site’s users said that the network was less important to them than it was this time last year, while 34% of respondents said that they spend less time on Facebook now.
However, Ian Maude, a new media specialist at Enders Analysis has said that the risk of Facebook heading in the same direction of MySpace is “relatively small”.
“The problem is that, in the US and UK, most people who want to sign up for Facebook have already done it,” he said. “There is a boredom factor where people like to try something new.”
Other social networking sites such as Twitter and Instagram are proving to be much more popular, particularly among the younger demographic. Between Q2 2012 and Q1 2013, Twitter’s user base increased by 40%, making it the fastest growing social networking platform in the world.