[ad_1]
<div _ngcontent-c15 = "" innerhtml = "
An employee walks past the signage and photo posted at the Instagram Inc. office in New York, United States, on Monday, June 4, 2018. Once, Instagram was a simple photo sharing app, a way to the iPhone photos. From now on, its visual character and its 1 billion active users make sellers welcome its potential as a place to sell everything from dresses to furniture. Photographer: Jeenah Moon / Bloomberg
The founders of Instagram follow the founder of WhatsApp by leaving Facebook, which, in my opinion, is part of the best news of Facebook in this hot year. Kevin Systrom and Mike Krieger leave Facebook because of Facebook's growing pressure to become more closely integrated with the mothership.
This question goes back to the heady days of 2014 and 2015, when start-ups were such a hot property that founders could have their cake and eat it too. This meant that the acquirers had to allow the founders of the acquired companies to continue to run their business as before, even if the founders had sold all of their economic interest, as well as control of their creations. Failure to comply meant that the founders would simply move on to the next ecosystem that was willing to pay them the same price and give them the independence they wanted. That's the reason Google lost Twitch (see here) on Amazon because Google has long recognized how crucial it is to integrate Digital Life's services to realize their true value. Google refused to allow Twitch to remain independent and therefore sold to Amazon instead, which had not really understood the importance of integration.
The same thing is happening now at Facebook.
In the face of slowing growth and collapsing margins (see here), Facebook can no longer afford to have these assets of paramount importance while fending for itself. When incomes grew rapidly and there were no clouds on the horizon, this was less of a problem, but now that times are harder, Facebook needs to make the most of it. investments made on Instagram and WhatsApp. The first way to do this is to integrate with Facebook and integrate with Facebook so that the knowledge and understanding that Facebook has of its users is deeper. For example, it can leverage better information and target users with more relevant and less intrusive ads and charge more to their customers by print.
The pressure to exert forced Facebook to turn to the acquired companies and to bring them closer, to which the founders resisted relentlessly. That's why Facebook saw the first release, the founder of WhatsApp and now the founders of Instagram.
I think this loss is actually good news for Facebook. These services have grown far beyond anything expected from Facebook participation and regardless of the value that the founders have brought to the table for a long time. The future of these services for Facebook is that they integrate Facebook so that Facebook becomes an ecosystem in its own right.
It means a coherent place where users live their digital lives with Facebook rather than a series of separate and fragmented services. This integration will allow Facebook to more effectively monetize its services and support a return to growth over the next three years. With the founders gone, Facebook should have a much freer hand to make that change, which means that their release is really necessary, good news.
Despite this long-term rise for Facebook, the short term is rather bleak with a slowdown in growth and a 1000bp decline in operating margins on the cards. In addition, Facebook needs to lick its AI, which I think has long been at the root of most of its problems (see here). Once that is done, then it is possible to return to steady growth and much better profitability. It's time to be involved again with Facebook, not before.
">
An employee walks past the signage and photo posted at the Instagram Inc. office in New York, United States, on Monday, June 4, 2018. Once, Instagram was a simple photo sharing app, a way to the iPhone photos. From now on, its visual character and its 1 billion active users make sellers welcome its potential as a place to sell everything from dresses to furniture. Photographer: Jeenah Moon / Bloomberg
The founders of Instagram follow the founder of WhatsApp by leaving Facebook, which, in my opinion, is part of the best news of Facebook in this hot year. Kevin Systrom and Mike Krieger leave Facebook because of Facebook's growing pressure to become more closely integrated with the mothership.
This question goes back to the heady days of 2014 and 2015, when start-ups were such a hot property that founders could have their cake and eat it too. This meant that the acquirers had to allow the founders of the acquired companies to continue to run their business as before, even if the founders had sold all of their economic interest, as well as control of their creations. Failure to comply meant that the founders would simply move on to the next ecosystem that was willing to pay them the same price and give them the independence they wanted. That's the reason Google lost Twitch (see here) on Amazon because Google has long recognized how crucial it is to integrate Digital Life's services to realize their true value. Google refused to allow Twitch to remain independent and therefore sold to Amazon instead, which had not really understood the importance of integration.
The same thing is happening now at Facebook.
In the face of slowing growth and collapsing margins (see here), Facebook can no longer afford to have these assets of paramount importance while fending for itself. When incomes grew rapidly and there were no clouds on the horizon, this was less of a problem, but now that times are harder, Facebook needs to make the most of it. investments made on Instagram and WhatsApp. The first way to do this is to integrate with Facebook and integrate with Facebook so that the knowledge and understanding that Facebook has of its users is deeper. For example, it can leverage better information and target users with more relevant and less intrusive ads and charge more to their customers by print.
The pressure to exert forced Facebook to turn to the acquired companies and to bring them closer, to which the founders resisted relentlessly. That's why Facebook saw the first release, the founder of WhatsApp and now the founders of Instagram.
I think this loss is actually good news for Facebook. These services have grown far beyond anything expected from Facebook participation and regardless of the value that the founders have brought to the table for a long time. The future of these services for Facebook is that they integrate Facebook so that Facebook becomes an ecosystem in its own right.
It means a coherent place where users live their digital lives with Facebook rather than a series of separate and fragmented services. This integration will allow Facebook to more effectively monetize its services and support a return to growth over the next three years. With the founders gone, Facebook should have a much freer hand to make that change, which means that their release is really necessary, good news.
Despite this long-term rise for Facebook, the short term is rather bleak with a slowdown in growth and a 1000bp decline in operating margins on the cards. In addition, Facebook needs to lick its AI, which I think has long been at the root of most of its problems (see here). Once that is done, then it is possible to return to steady growth and much better profitability. It's time to be involved again with Facebook, not before.
