Facebook Inc (NASDAQ:FB) is introducing disruptive new features almost every week. The company’s CPO has now confirmed that Facebook wants to actually host the content rather than just directing its users to the website via shared links. This would mean that instead of searching things on Google Inc (NASDAQ:GOOGL), you will just open Facebook Inc (NASDAQ:FB) and find your news feeds filled with content of your interest. No need to click on link, means no need for Google Inc (NASDAQ:GOOGL)? Well, it seems flabbergasting to believe, but that is what Facebook Inc (NASDAQ:FB) is planning.
Facebook Inc (NASDAQ:FB) is investing millions in its ads network. It has immense grip on user data. The content hosting by Facebook Inc (NASDAQ:FB) will mean massive shift from advertisers to Facebook ads. Google Inc (NASDAQ:GOOGL) accounted for around 39$ traffic that comes from the web in 2013. This percentage is getting small every day. An article on Financial Times quoted a source that says that a quarter of the internet traffic comes from Facebook. People no longer search Google to get their daily news feeds. They use Facebook Inc (NASDAQ:FB) timelines for that. This is a big problem for Google Inc (NASDAQ:GOOGL), a company already struggling to catch up the product innovation Facebook Inc (NASDAQ:FB) is offering to the publishers.
But the question is whether publishers will like this massive change by Facebook Inc (NASDAQ:FB) or not. They monetize their websites and content through Google Inc (NASDAQ:GOOGL). Facebook’s content hosting would mean total change in the working dynamics.
The source said that Facebook Inc (NASDAQ:FB) interest in content hosting seems a far-fetched idea but this is highly practical. Google Inc (NASDAQ:GOOGL) will have to run for its money if Facebook Inc (NASDAQ:FB)’s content hosting culminates into reality.
David Tepper’s Appaloosa Management Lp owns around 600,000 Google Inc (NASDAQ:GOOGL) shares.
Suggested Articles:
