From an article in The Economist:
“Big tobacco” is what the bosses of several large technology firms have started calling Facebook in private and in public. The company has spent the past year fending off critics who claim it is addictive, bad for democracy and overdue for a regulatory reckoning. Being compared to the tobacco giants is one of the business world’s more toxic insults, but it is not the only unflattering analogy circulating. A lower blow is the suggestion that Facebook may become like Yahoo, the once high-flying internet firm that plunged.
Also, from the same article:
But people who watched Yahoo’s collapse see ominous similarities. Executive turnover was a leading indicator of its decline; before Ms Mayer was hired it went through four chief executives in three years. Mr Zuckerberg, who controls the majority of Facebook’s voting shares, is not leaving, but many top executives are. This year several have announced their departures, including Instagram’s founders; the boss of Oculus, a virtual-reality acquisition; a co-founder of WhatsApp; and Facebook’s general counsel and its chief security officer. “The number of senior people who have left publicly and denounced the company going out the door is unprecedented. This is Yahoo pre-Marissa Mayer,” says a senior digital-advertising executive.
You can read the full article at: https://www.economist.com/business/2018/11/24/facebook-should-heed-the-lessons-of-internet-history.
We have all read about banks, stock brokers, and corporations that were “too big to fail.” It now looks as if Facebook is “too big to survive.”
Categories: Business News