When the dotcom boom, Yahoo reached a market capitalization of USD 128 billion and rapidly growing advertising revenue. Now glory Yahoo collapsed, the market capitalization of less than USD 10 billion.
The reason, companies that buy ads Yahoo instead of the traditional brand advertisers, but the company that bought the TV and magazine advertisements. They pay large amounts to be official partner of Yahoo in various sectors.
The money they spend on advertising does not come from their own advantage, but from the investment made by the owners of capital. When the dotcom era faded, funding from the owners of capital for startup dries. Yahoo’s revenue sources, too hovering.
In a leaked email that happened as a result of hacking Sony, Snapchat CEO Evan Spiegel said the same fate awaits Facebook.
He believes that Facebook revenues will also greatly depend on the startup backed by investors who buy traffic and users. According to Spiegel, Facebook is currently in danger due to start showing decreasing user engagement and limited appeal to advertisers.
“This indicates the need for help for big advertisers have not moved to the Facebook mobile platform and mobile revenue growth driven by technology companies mostly funded investors,” he said in an email conversation.
Interesting to understand the context of an email conversation Spiegel. Because shortly after decided to reject the offer of acquisition of Facebook worth more than USD 3 billion, Spiegel apparently sent a memo to investors.
Basically, Spiegel tried to convince investors that Snapchat have a better future as an independent company rather than be inside Facebook.
As is known, a hacking attack that hit Sony Pictures is not only detrimental to the Sony Entertainment. Leaking of emails that reveal the secrets behind the effort Facebook bargain Snapchat also make Snapchat CEO Evan Spiegel stress.