Apr
09

Facebook: ‘We Bought A Social Network’

by Feedback

The technology news out today is bigtime: Instagram is being bought by Facebook for $1 billion in cash and stock, the Big Man announced today. It’s a development that has people (including us) wincing at what could become of the fun and simple photo-sharing service for iPhone and, as of last week, Android.

We wince only because Facebook and big companies before it have consistently proven their wonderful ability to run the companies they buy into the ground or shut them down and integrate the technologies into their own platforms.

But should we expect the same this go-’round?

This acquisition is the most notable one in the world of social media since Google bought YouTube for $1.65 billion, and YouTube is still around much like it was before the acquisition: independent and potentially even better than before, just part of the Google family of products.

We’d hope (and it would seem) that the Facebook-Instagram deal mirrors that of Google-YouTube. According to the post on Zuckerberg’s page, the company understands that it can destroy Instagram if it’s not careful:

“…we need to be mindful about keeping and building on Instagram’s strengths and features rather than just trying to integrate everything into Facebook. That’s why we’re committed to building and growing Instagram independently. Millions of people around the world love the Instagram app and the brand associated with it, and our goal is to help spread this app and brand to even more people.”

So, to that end, some thoughts on what could become of both sides:

- Instagram isn’t going anywhere anytime soon. Facebook is well aware that it has the ability and power to stupidly ruin a good thing, and it doesn’t want to do that. Instagram founder Kevin Systrom reiterates this message, too.

- Facebook users will probably get Instagram filters and better editing features at some point, so prepare to see more pictures of your friend’s kids, only with various filters and blurry parts.

- This could mean the first real domino in Facebook rolling out tags for photos, giving the standardization of tagging huge legs for the future.

- You have to wonder if the Instagram “Heart” will become a Facebook “Thumbs up.”

- Facebook is already the No. 1 photo upload site on the Internet, and this purchase will only strengthen its position there over rivals such as Google+. This could potentially hurt Twitter, too, though Instagram allows for sharing on that site and will continue to do so. Too early to tell.

- It could also mean a death blow to Flickr, which, while popular with photographers, you hear less and less of over time. It’s just not as social and doesn’t have the traffic or mobile friendliness. (And there are other services besides Flickr, as well.)

- It’s likely any real significant development from this won’t be visible for a year or more, but you may see some early tweaks to image sharing on both sides in the first six months.

More than likely, the most notable change to Instagram will be for the founders themselves, who are joining Facebook under terms of the deal: After two years out on their own, they now have bosses.

Dec
22

The Young and the Restless: Who Are These People?

by Feedback

In the same year that a major motion picture chronicled (or lampooned, depending on your point-of-view) his college exploits, Time Magazine named Facebook founder & CEO Mark Zuckerberg the 2010 Person of the Year. Meanwhile, having just rejected a reported $6 billion purchase offer from Google, Groupon founder Andrew Mason blithely deflects questions from the Today Show’s Matt Lauer with an aloof mix of nonsense and non sequitur. Neither is yet 30 years old. Both are presumed billionaires. Who ARE these people? Are they the same or total opposite?

Facebook's Zuckerberg

In the run-up to The Social Network, I devoured just about every piece of information I could regarding Zuckerberg and the founding of Facebook, as a means of checking the film from a fact-or-fiction, a Hollywood vs. Reality standpoint.

Likewise, as Groupon entered the local market, uncoincidentally at the same time as major competitor, LivingSocial, I dug into the background of Mason to see if there was another genius college dropout turned visionary CEO story afoot. I can tell you this much with certainty: Mason is no Mark Zuckerberg. Andrew Mason, for his part, does demonstrate clarity of vision, an underrated if unheralded virtue among the young CEO set.

But if you read the biographical profile found in the August 2010 issue of Chicago Magazine, you get the impression it’s Mason’s mentor, local serial entrepreneur Eric Lefkofsky, who is the real visionary. According to the feature, the roots of the whole Groupon idea came from a difficult divorce with a cell phone provider. Believing the angst generated by everyone who’s ever been through such a process could be focused into collective action and, hopefully, community remedy, Mason set to developing a non-profit organizing site called The Point. And while the site attracted a following, it wasn’t attracting investors. When it came to combine collective action with a money-making proposition, Groupon was born.

The rest, as they say, is history.

In tech years, Facebook is no spring chicken, as demonstrated by the fact that your mom, your dad and your grandparents have all figured it out. At a certain point, we’ve gotten to watch Mark Zuckerberg grow, not just as CEO of an indomitable Internet giant, but as a person, as an adolescent into an adult. Only 20 when he co-founded Facebook in 2004, we’ve seen or heard of him for so long, it’s hard to believe that the world’s youngest billionaire would barely be out of grad school had he taken the more traditional path.

A reluctant interviewee early on, Zuckerberg was considered arrogant and standoffish when defending both Facebook’s success and increasingly public missteps. But even as the slings and arrows of privacy concerns and backlash against site changes intensified, nothing has slowed the Facebook train as it cruised past the half-billion user milestone.

Meanwhile, the boy CEO has grown as well, recently appearing on 60 Minutes, ostensibly to announce yet another iteration of the Facebook interface. But what was really on display was a grown up Mark Zuckerberg, ready to put a real public face, not just for his company as they attempt to change and dominate the Internet, but for himself as well.

Groupon's Mason

On the other hand, as a public persona, Andrew Mason seems to be regressing. A Nightline piece a few months ago showed the Groupon CEO as the easygoing boy-next-door his company profile describes, casually tossing out the accolades and reminding everyone that they’ve thrived as new and well-backed imitators spring up around the world on what seems like an hourly basis. Fast-forward to a more recent Today Show interview, where relevant questions were dodged like bullets and Mason’s squirmy, awkward responses indicated a discomfort with the trappings of sudden fame and riches.

For all the perceived arrogance, Zuckerberg has never seemed to shrink from the challenge of running the Internet’s biggest company. It would do Mason well to develop some semblance of that fortitude, or the CEO with the “fastest growing company ever” (according to Forbes magazine) may prove to be too great a mantle to bear.

Naturally, only time will tell the fates of both companies and their suddenly super-rich young CEOs. In a final comparison, it’s worth mentioning that some of Zuckerberg’s most awkward moments with the press were in deflecting buyout and lawsuit talks. Maybe when the conversation about Groupon turns away from Google’s offer and more to the company’s future, Andrew Mason will rebound and find the confidence and grace that Zuckerberg has shown. We shall see. And answer the question from the outset: Who are these people? They’re not like you and me, that seems clear. But while they don’t appear to be on the same plane at this point, it’s possible that they may find more common ground in the future.

Who knows, maybe it’ll be Facebook’s money that is ultimately too much for Groupon to turn down.

-Thomas (@thomasmcdonald)

Aug
18

Everything In Its Right Place? Facebook Places

by Feedback

Some things are simply inevitable.

The sun will come up.

Charles Barkley will say something unintentionally hilarious.

Facebook will emulate what it doesn’t buy.

On the latter point, Wednesday evening Facebook debuted Places. The premise and execution of Facebook Places is remarkably similar to the first two sentences anyone may use to describe any number of check-in applications: It’s a way to share your actual location with others online; it also allows you to observe where others have checked in. Where many other applications seek to go from that starter definition, be it MyTown with games, Foursquare with tips, Gowalla with stickers, or ShopKick with deals, Facebook has simply stopped limply (but maybe effectively) at the first point of entry.

There’s a few other tricks to Facebook Places, and the following video, dripping with a sincerity that suggests they have suddenly figured out something others haven’t, demonstrates them:

Also inevitable is that Walt Mossberg of the Wall Street Journal will be given a test run before most other humans. Unlike his usually predictably estatic review of Apple products (generally done in time for Steve Jobs to use an actual Mossberg quote as a part of his Keynote presentations), Walt was actually a bit matter-of-fact about Facebook Places. Not cold or harsh, just… well, “Meh” would probably be the most effusive meta-adjective I’d use.

This is because what may become the most short-term-advantageous thing about Places is what it does for others, including those other check-in services. The APIs that could come streaming out could hook into and help fuel the growth of any number of companies Facebook as threatened or tried to buy recently, several of whom (Gowalla, Foursquare and Yelp) actually appeared in some form on stage with Facebook for Places’ debut. And yes, businesses can claim their “Place” via a Page as we and others mused months ago.

And what about long-term? Well you can better believe Facebook didn’t debut this to merely dip a toe in. Cross-platform geo-location ads, sacks of data on visitations and total domination of the “place” space is clearly a mid-term goal. Actual quote from Zuckerberg: “…certainly you can imagine these things in the future.”

We have been recently musing on the concept of “place” (including, “How Location Could Change The Future of Pages” last March) insofar as the web toys with tying itself to real-world geographies and the inherent opportunity and fear laden in those watching this wrestling match happen. But one thing we’ve always said about Facebook — their nearest, truest competitor in a spiritual sense was never MySpace, but Windows. They want to be the start, constant and end of the web for many people — the entry point in. And for many, they are. So now marry location ontop of that and you can begin to see how powerful they could become for the general public. For and to the general public, I should say. Being in Facebook, as a valid location that people actually visit in real life as well as “Like” could become the equivalent of having your name and address in the phone book in the 80′s and being a store that’s in the Mall. You want to be “seen” there- and now you can, by friends who aren’t even nearby to see you.

This, of course, begs the privacy question. But if we rest for a moment and assume that this is about who you allow to see your location, we can hopefully still talk about “place” and Facebook’s role in it in a rational fashion. I could choose to not tell a single friend where I was on Facebook and still find it incredibly valuable to know that a restaurant I hear about in Richmond, VA called “Strange Matter” has been visited by several of my friends, I could reference it in a Status Update and get real recommendations of what to eat there and tips such as bringing your own quarters for the vintage arcade games. 3/4 of that scenario already happened pre-Places, but now I could potentially verify that it’s a cool place that several of my less chatty friends have also patronized recently. It becomes an early indicator for me in a single search, allowing me then to pursue more info through other means (Yelp reviews, call-outs for other recommendations on Twitter, etc.).

Facebook Places doesn’t change the game as much as it does solidify it, make it whole and, likely, make it ubiquitous. What it does more than really innovate is fire a cannon in a battle previously fought by slingshots as it brings its half-a-billion active audience into the check-in game. But don’t be distracted by the battle to see whose or what type of check-in system wins. Instead, start to look ahead, with us, at what this will mean for the intersection of real and web location in the years ahead.

-Dean (@dbrowell)

UPDATED August 19, 2010: Not that Facebook Places is available in #RVA just yet. #Fail #FacebookPlaces, #Fail.

One last note: Notice that Places logo? As TechCrunch points out: “It’s a 4. In a Square. Yeah.