Out of the mouths of birds – Twitter, in its S-1 stock market filing, assesses it’s own business thus; “Our success depends on our ability to provide users of our products and services with valuable content, which in turn depends on the content contributed by our users.”
Now this is beginning to sound very ‘Facebook’ / ‘Google+’ (pick your platform).
Essentially Twitter is saying that their entire business model is one that relies on the public contributing product (some call it ‘content’, ‘social media’, idle banter’ or even ‘true confessions’) that Twitter can use to attract people who will use and consume that product.
Nice work if you can get it ……….
Stock Market guru Warren Buffett apparently passed on buying Twitter shares.
Writing for Market Watch, Meena Krishnamsetty says; “In the case of Buffett and Berkshire Hathaway, they’re not your typical technology investors. They follow a very strict set of rules when selecting investments in this space [technology stocks], which, through our observations, boil down to finding tech companies that: 1. trade at very cheap multiples, 2. pay a dividend, and 3. have sustainable product offerings that will safeguard their survival over the next 15 to 20 years.”
I am sure that any monkey with an abacus can see that Twitter fails on all three of Buffett’s principles.
So, how does it feel to be working for Twitter, Facebook, Google+, Instagram, Pinterest, LinkedIn et al and NOT being paid a cent for your hard work and intellectual property?