LinkedIn’s stock is surging amid rumors of a possible partnership with Facebook. [1]
While it’s still highly speculative, a partnership with Facebook might not be such a bad idea considering that LinkedIn can easily flex its relationships with corporates/employers while Facebook provides the necessary boost in traffic. Facebook leads in the social networking arena with other competitors such as LinkedIn and Google.
We currently value Facebook at around $45 billion.
LinkedIn and Facebook Competing in the Same Space
On the surface, there are two factors that go against a rumored Facebook-LinkedIn partnership. Firstly, they both compete against each other in the social networking space although LinkedIn has more of a focus on professional networking (which can also be social).
Secondly, user privacy has always been a concern with Facebook and people might still be wary of mixing their personal and professional lives on a single platform.
For further insights, read our note on Where does Facebook Stand as a Recruitment Tool?
But Facebook can Act as a Major Provider of Web Traffic
Recent developments at Facebook indicate that the company is better off as a platform to other service providers (providing them with additional traffic), rather than actually hosting the business itself. Two key examples are:
Both of these examples suggest that Facebook might not be the best at actually adopting new product lines. For example, daily deals is an expensive business with high marketing expenses and an army of sales-people to manage, and it seems Facebook Deals realized it early in the day. however, what Facebook is great at is providing millions in potential Web traffic to other quality service providers.
Special Offer: Drink up huge profits with Jim Oberweis. He’s the guy who had subscribers into Baidu at $8 and who rode Green Mountain Coffee for a 1,200% gain. Click here for four stocks to buy and sell now…in the Oberweis Report.
LinkedIn’s user base at over 110 million is still about one-seventh of Facebook’s, and the professional networking site can clearly benefit if Facebook provides the necessary web tools and filters to get more relevant traffic onto its site. whether this rumored partnership involves simply adding LinkedIn’s job listings to Facebook or something bigger is something we would have to wait and see.
See our full analysis for Facebook
Like our charts? Embed them in your own posts using the Trefis WordPress Plugin.
immigration news - sex crimes of illegal immigrants
No comments:
Post a Comment