Re:Facebook Requires Social Fixer Browser Extension to Remov...
by pdonis on Sunday October 06, 2013 @09:52PM
(#6506201)
The "maximize shareholder value" chant
I didn't say "maximize shareholder value". I said FB has to make decisions that benefit their stockholders; that's not quite the same thing.
Also, as I pointed out in another subthread, there's a big difference between a company that gets revenue from users directly (like Amazon, the example brought up in that subthread--or like a car company) and a company whose users only generate revenue indirectly, as FB's users do (through ads). The latter kind of company has a much weaker link between benefiting users and benefiting shareholders than the former does. I've outlined in other posts in this thread the strategy I think FB is following, and it's not a strategy that's focused on maximizing their short-term return on capital, but it still makes them act in ways that make at least some subset of their current users dissatisfied.
I didn't say "maximize shareholder value". I said FB has to make decisions that benefit their stockholders; that's not quite the same thing.
Also, as I pointed out in another subthread, there's a big difference between a company that gets revenue from users directly (like Amazon, the example brought up in that subthread--or like a car company) and a company whose users only generate revenue indirectly, as FB's users do (through ads). The latter kind of company has a much weaker link between benefiting users and benefiting shareholders than the former does. I've outlined in other posts in this thread the strategy I think FB is following, and it's not a strategy that's focused on maximizing their short-term return on capital, but it still makes them act in ways that make at least some subset of their current users dissatisfied.