Facebook Inc (FB)’s Divide and Conquer Strategy: A Collective-Action Problem for Media


Facebook Inc (NASDAQ:FB) has revealed its plans about turning its social platform into a massive news hosting outlet. Twitter is yet again in trouble with this announcement. For months, Twitter is orienting itself as a primary news source. If you want any important news and update about what’s going on in the world, you go to Twitter and see all the rant. Facebook Inc (NASDAQ:FB)  is not the primary news sources, as most of the business pages use it to share their products; people use it for entertainment purposes and photos. But all this is about to change. Twitter had only place where it is good at and that is the news and how quickly the information is disseminated. But Facebook Inc (NASDAQ:FB) is taking things by storm.

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In an article on Slate, Will Oremus said that it was already predicted by the experts that Facebook Inc (NASDAQ:FB) will soon start hosting complete news on its platform. The users were sick of clicking the news links, waiting for things to load and then getting back again to the feed to continue. Twitter also works on the same model: all the news personalities and website share a teaser with a link, thanks to the 160 characters limit. Facebook Inc (NASDAQ:FB) will take a massive lead on Twitter now. Its users will get one-stop shop for news, entertainment, videos. The source also said that Facebook Inc (NASDAQ:FB) algorithms had always favored the native videos and content rather than links.

The source said that Facebook Inc (NASDAQ:FB)  is using divide and conquer strategy. It has called on all the publishers that the sooner they sign for Facebook Inc (NASDAQ:FB) news hosting, the better will be the results.

  Ken Griffin holds 4.58 million shares worth $307.87 million of Facebook Inc. (NASDAQ:FB).

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