The big news of the day is the Facebook IPO. Silicon Valley has gone a little crazy and even the house prices around Facebook HQ have gone up. Many Facebook employees who got in on the ground floor are going to make a lot of money, and they deserve it. With a user base greater than the population of most countries the product they have created in 8 short years is amazing.

Investors are eager to get in on the action however in recent years the only digital media company that has had gains since IPO is LinkedIn. We can also look at failures at Yahoo and MySpace, once also online leaders, as cautionary tales. It could be argued that Facebook users are more tied in than ever before and that is the case in comparison to MySpace, but maybe not in the case of Yahoo.

Anytime an IPO like this comes around, I think of the market opportunity missed by other more established companies. We can now add Yahoo to that list. Yahoo which had masses of registered users, online chat, forums, user profiles, online games and much more now has to watch Facebook come from nowhere and dominate the social space. Faceboook are having a hackathon to celebrate the IPO, over at Yahoo they are still wondering how they appointed a CEO without checking his CV.
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