The Tide Has Changed in Silicon Valley

Yesterday evening the news broke that Facebook had made its first acquisition, Parakey. The acquisition signaled their intentions to take Google head on. The move is an extremely bold statement by Facebook given that they are up against a massive company. Michael Arrington hypothesized that their rationale to go with Facebook was that they were offered pre-IPO Facebook shares in addition to cash. Soon after the news broke, Google released last quarters earnings. Unfortunately, Google missed causing the stock to drop 7 percent. The timing could not have been more perfect. A couple small missteps by Google and one smart one by Facebook and suddenly Facebook is on the fast track to success. While I enjoy hyping up Facebook’s future growth, one has to be realistic in understanding that we are at least a year away before Facebook launches their next revolutionary product. Still, the two major news items of last night could not have been more perfectly timed. It was truly symbolic. It will be exciting to watch the transformation as Facebook becomes a bigger competitor to Google. Facebook is the underdog and everyone is rooting for them. Will they make a misstep or will they seize the moment and soar to the top? I don’t know which way things will go, but one thing is for sure: will be covering the story until the finish.

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