Is Facebook the Next Geocities?

This is the question brought out by Andrew Goodman. 1999, Yahoo! Spent 3.6 billion dollars to purchase GeoCities. May be, you are wondering: is facework capable of making huge amount of money? Just from the look of the website, you can’t image that facebook is growing in an amazing rate, overrunning myspace a lot. However, the incredible growth costs a lot, for example, for example, “a couple of hundred million dollars a year just to keep the lights on at Facebook. But the real problem is keeping up with growth, particularly storage needs. Add another $100 million or more per year for capital expenditures, and you’ve got a company that’s doing exactly the opposite of printing money.” So as Michael said, it may force Facebook back to the capital markets. Not just Facebook along, many excellent web-based company have been listed as candidates of death. To deal with this winter of economy, small company with bad health should save energy and decrease consumption, however, Facebook is not a small company anymore. Her huge increase makes others jealous. She is changing rules of the game to set up a new patten of web and make all rivals feel uneasy. This winter may be an opportunity for Facebook to show its talent and became outstanding, as the last winter helped Google a lot.

As for Google and Microsoft, they are eying on Facebook covetously and waiting for a good time to purchase it. However, finding a company that may change rules of the game is very difficult. Huge amount of capital won't let Facebook freeze to death.