By Rob Cox
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
If you’ve watched the NBA playoffs, you’ve seen the Oklahoma City Thunders’ rangy Swiss guard, Thabo Sefolosha, and his courtmate, human basketball swatter, and Spanish national, Serge Ibaka. To get to the finals, Sefolosha and Ibaka beat Tony Parker and Manu Ginobli, two international anchors for the very American San Antonio Spurs. In the finals, Sefolosha and Ibaka are facing off against Ronny Turiaf, the Miami Heat’s erstwhile benchwarmer, who hails from France, to see who gets to take the NBA Finals trophy away from German forward Dirk Nowitzki, the MVP of last year’s championship.
The startup had millions of users, but, from the beginning, just one customer.
The predominant way of interpreting Facebook’s billion-dollar purchase of Instagram, in light of the social-networking giant's forthcoming IPO, is that Mark Zuckerberg had to pick up the photo-sharing app to boost his company’s mobile engagement. That would allow him to guard the mobile flank against incursions from Google, Twitter, and whatever other social-media tools might next arise.
Facebook shouldn't pay its users. Its users should pay to own Facebook.
“Facebook was not originally created to be a company,” founder Mark Zuckerberg wrote in his letter to investors announcing the IPO of his already hugely successful and profitable company. “It was built to accomplish a social mission — to make the world more open and connected.”
The late 1990s was a wild time in Silicon Valley. The NASDAQ was soaring, and seemingly anyone could start a company, stick a .com at the end of its name, put together an IPO and retire a millionaire. The great boom ultimately took on a speculative character that led to wasted investments and the collapse of many poorly-grounded operations. But it was rooted in a surge of not-unrealistic optimism about the potential of the internet to change the world of business.