Quote:
Originally Posted by SayOw
My question has always been for this internet entities like Facebook and Twitter has been: what have they really built? Or what do they really have?
They really haven't built anything tangible. It's all based on ad revenue.
Once the "next best thing" comes along, these companies can go from high on the hog to bankrupt in literally a couple months. What assets do they really have other than an office building (that they probably are leasing) and a few computers (again, that they are probably leasing). Once these internet companies begin to lose their footing, they almost free fall straight to bankruptcy...but of course not until after all the "principal partners" have cashed in.
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Indeed. This is the Catch-22 with Internet businesses (and I run a handful). But, alas, the barrier to entry to market is what drives people there (including myself). With little to no capital somebody can start a business (almost) literally overnight.
Nick