Facebook to die in a few years, according to analyst

In an interview with a CNBC show last Monday, Ironfire Capital’s founder, Eric Jackson, said that social networking giant Facebook is going to close shop a few years from now.

Jackson compared Facebook to Yahoo! by saying, “In five to eight years they are going to disappear in the way that Yahoo! disappeared.”

“Yahoo is still making money, it’s still profitable, still has 13,000 employees working for it, but it’s 10% of the value that it was at the height of 2000,” he added.

Jackson sees Facebook struggling to cope up with the change of people’s perceptions in the years to come.

“The world is moving faster, it’s getting more competitive, not less. I think those who are dominant in their prior generation are really going to have a hard time moving into this newer generation,” he said.

Facebook admitted that as mobile technology continues to grow and as the numbers of mobile Facebook users continue to rise, its ad-free strategy will lead to problems for the site.

Jackson classifies Facebook as a second generation of modern Internet companies. Google and Yahoo! were classified by the former as first generation companies.

What Jackson sees as third generation companies are business whose only goal is to influence and to earn money through mobile usage.

What are your thoughts on this? Good news or Bad news for Facebook down the road?

Image Source: fortytwotimes.com

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