Marc Andreessen on Facebook Three Years Ago

May 25, 2012
J. Webster
Comments Off on Marc Andreessen on Facebook Three Years Ago

Here’s someone who might know a thing or two about Facebook, Marc Andreessen, who sits on the board and just so happens to own roughly 6,607,131 shares in the company. I wonder if he sold any on the IPO? But he kicks off his Charlie Rose interview from three years ago talking about Facebook – starts at the 2:25 minute mark and is all about Facebook for about the first six minutes.

Andreessen is of course the founder of Netscape and a financial backer of Skype, LinkedIn, Twitter, Instagram, and so on. In other words, he’s a genius and picking what companies will be successful.

Some of Andreessen’s key comments on Facebook – and remember, this interview as done three years ago:

“Mark Zuckerberg is very determined to build a long term company – connect everybody on the planet (say roughly 3 billion people who might have a computer or cell phone). If Facebook turned on the spigot for normal advertising it would be doing billions of dollars in revenue. It could sell out the homepage and start making a gigantic amount of money.”

I’m actually surprised Facebook doesn’t do this for some big brands, say Coke or Pepsi want to run a banner type ad on the login/homepage of Facebook. Think about all those impressions!

Actually, it looks like Facebook is doing this in a way now, by letting certain companies or brands post their Facebook fan page on the homepage of Facebook, this way the brand or company can generate a huge number of fans who they can then sell their products to and communicate with daily. That’s even more valuable for a brand than a silly impression or click. They now have you as a fan they can talk to.

What’s more, Facebook can really tailor those Facebook fan pages they show on the homepage to the user, since they know so much about you – where you live, your age and sex and so on. I think we’re really in the early stages of what Facebook is going to do to monetize all those users. Might be time to take a closer look at Facebook’s stock as this IPO debacle slowly winds down. Facebook shares in the $20-$30 range might be a wise long term buy if you believe in Facebook.

Update: It seems like Facebook now shows you these “ads” on the homepage for a Facebook fan page once you logout. I guess that way they know who you are and what you might be interested in. I wonder how much these companies are paying Facebook to be featured on the homepage? In this case it’s a fan page for UFC: Ultimate Fighting Championship.

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