In less than a week, the financial world is going to witness Facebook drive one of the biggest initial public offerings in history. It will make its investors stinking rich and have techies espousing the transformative power of the web and social media. But Facebook’s IPO already has skeptics calling the into question the company’s incredible valuation. Some are even wondering if it’s the start of a new bubble.
If that forecast turns out to be true — if Facebook (and the social ecosystem that grew up around it) crashes and burns like MySpace and so many dot.coms before it — privacy might play a major role in its demise. Investors want to see ad revenue grow, but users might bail in a hurry if Facebook crosses the line of how it’s acceptable to treat their very-personal data.
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