Monday, February 3, 2014

Would you rather own Facebook or Disney in its entirety?

It's possible that I will never truly understand people. What seems like a logical choice to me is illogical to other people. What seems to be a "clear cut case" is in fact severely obfuscated. Take for example Facebook. It's a free social network that allows people to argue politics and play Candy Crush and join the ranks of "humble braggers" who post only the best parts of their lives for others to view so as to make others think that their lives are worthy of celebrity.

Well just last week, Facebook reached a market cap so huge that if liquid, the fortune that is Facebook could buy both Boeing and Eli Lilly and have money left over. Boeing is an aerospace giant that makes commercial and military aircraft that entire nations cannot live without. Eli Lilly is an American global pharmaceutical that goes a long way to combating diabetes with its drugs. So how is it possible that a social network (which I deem rather useless if you must know) is worth more than these companies combined based upon ad revenue?

And as of the close of the market on Friday, Facebook could buy Disney in its entirety. I asked a friend this question: If you could choose a company to own completely, would you own Disney or would you own Facebook? His response: Disney by far.

Disney now owns Star Wars, Indiana Jones, Marvel, and Pixar (not to mention its huge and very fun theme parks).

Hands down, I'd want to own Disney over Facebook too. I actually loathe logging onto Facebook. However, you can bet that I'd love to go to Disney World and then post all my pics to Facebook. Afterall, isn't that what Facebook is for?

I guess I'll never understand why people put such value in Facebook. Maybe that's why I'm not rich. I just find it all mildly frustrating because I don't think Facebook deserves its market valuation. It's entire product is smoke and mirrors. Ah well. /shmuck out

30 comments:

Alex J. Cavanaugh said...

I'm not even on Facebook - I'd pick Disney for sure.

Mia Hayson said...

Ummmm, Disney make my Tinkerbell moisturiser. No contest!

DEZMOND said...

I'd choose Disney too because Disney brings happiness :) while Facebook is devil's device for controlling people and spying on my gorgeous self :)

Pat Dilloway said...

I'd always prefer something that has tangible assets. You'd think Wall Street would have learned from 1999 and the dot-com bust, but I guess not.

I'd have thought today you'd be gushing about all the Super Bowl ads, which I of course thought were entirely meh. Microsoft's said the same thing as that Apple one only without all the pretentiousness, so points for them.

Susan Gourley/Kelley said...

I think Disney is forever but I doubt Facebook is. Remember Myspace? Something will replace it but we always will have Disney.

Sarah Ahiers said...

I'd go Diseny for sure, as well. With the constant changing tech, there's no knowing if FB will be around in the next few years, but Disney has staying power. People will always want stories and Disney is in the story business

David P. King said...

Disney. Being an occasional FB user, it's often overwhelming to log in and find countless memes and "10 things "something" about "something" lists when I just want to see what my friends have on their mind. :)

Stephen Hayes said...

I think Facebook is starting to decline. Young people no longer think it's cool. I mean how cool can it be if I have a Facebook page.

Suz Korb said...

It's all about advertising. Advertisers pay big to Facebook and investors see that and jump on the bandwagon. It's not the people who use Facebook, but what goes on behind the scenes. If facebook doesn't suddenly go the way of Myspace it will be okay, but all websites crash and burn eventually, right?

Hart Johnson said...

Teehee--yeah, the Disney perks definitely seem perkier. But then Disney has a lot more things that could fall apart, break down and go wrong, doesn't it? I mean it seems like more work to keep it working. So far as I can tell, all Facebook has to do is sit back and reap the money.... granted, they keep trying to do it BIGGER and keep making annoying changes, but seriously... how much more WORK is it to make sure all Disney's pieces are in order?

Theresa Milstein said...

I like Facebook.

The part of Disney that's all theme park and princess-y bugs me. Tough choice.

Sheena-kay Graham said...

Disney rocks. Sorry but I'm a FB fan Mike.

mooderino said...

But the stock market is also all smoke and mirrors. It's the perfect fit.

mood
Moody Writing

Brad Cole said...

Disney has 14.5B in debt right now and 4B in cash. ABC is last in the 18-49 demo. Pixar has no movie for 2014. John Carter and Lone Ranger have been high profile write downs in back to back years. ESPN is now facing legit competition from Fox Sports One. On the other hand, Facebook has .5B in debt 7.5B in cash. It saw earnings increase by 700% last quarter. Up until last year Facebook had zero market penetration into China but is now gaining access so users and revenues will increase just by that alone.
The market likes Facebook because it has high margins, predictable expenditures and tons of cash. Disney is the exact opposite of that.

mshatch said...

Disney, hands down.

Andrew Leon said...

Disney has cool factor. Despite its money, people (mostly) have a negative view of FB.

L.G. Smith said...

If I owned Disney, I wouldn't have to stand in line. Win. :)

Cindy said...

Disney...but the thing about Facebook is the only way that will go down is if something better takes over. That's why Myspace fizzled.

Liz A. said...

Hmmm. Disney's been around since when? Decades, right? Facebook?

Will Facebook still be around in a decade? Or will we all have moved on to the next big thing? The main reason I remain on FB is because my SIL is on there constantly, so the only way I know what's going on in her (and my niece and nephews') life is by seeing her updates.

Susan Kane said...

Disney without a doubt. What was the original premise and statement: To entertain and be the happiest place on earth.

FaceBook--not so sure.

Helena said...

Smoke and mirrors is exactly right.

Like you, I'd much rather own Disney. At least Disney creates and owns movies, shows, merchandise, and other tangible real things. Facebook will likely tank after a while, replaced by another social medium. Besides, there's something about FB that gives me the creeps.

Patricia T. said...

Thoughtful article. I am so weary of FB -- hardly check it. Disney would win hands down -- atleast there is family interaction. And it's fun!

J.L. Campbell said...

Hey, Mike,
What I do know about Facebook is that it's a major time suck. I have made some useful connections there in recent times though. However, I hardly post other that what gets there via my blog.

Jay Noel said...

Strictly from a financial standpoint, Disney is the better choice. They own real estate and other hard assets. Plus all the licensing rights you just mentioned.

Facebook is highly overrated.

Brooke R. Busse said...

I would choose Disney because I believe your life should be filled with things you love. Owning a large corporation would be a lot of work. If I'm putting so much effort into something, I better love it!

Rusty Carl said...

There is a Facebook bubble!

Really, I have no idea. I have no interest in Facebook at all. I did think it was neat 7 years ago when I managed to meet several friends I hadn't seen in so long we'd lost touch.

With Disney though, man, owning that would be amazing.

Brinda said...

No dilemma for me. I'd buy Disney.

Lady Lilith said...

Interesting question. I would like to own Facebook because I think monetarily in the long run will be better off then Disney but at the same time, Disney is so much fun. I think they are all great choices.

Elise Fallson said...

Disney. Hands Down.

Danette Baltzer said...

I hate, hate, hate Facebook but this how I heard it explained (sort of) So Rush Limbaugh went on a rant about that girl who spoke about abortion?? or was it feminism? (I can't remember) Anyway, a whole bunch of people on Facebook all went on Facebook and put the businesses that advertise for RL on the Do Not Buy list which completely tanked their businesses. They then pulled their advertising for RL and his show lost tons of advertising dollars. Now at this point he has so much money it may not matter to RL but it displayed the power of Facebook. The same has happened to Sean Hannity and a couple of other conservative talk show hosts. When you are 'Liked' on Facebook (UGH! I hate that!!!) then it's free advertising and it does more for you then a Superbowl advert. That's why Facebook is worth so much.