Analyst predicts Facebook’s demise in 5 to 8 years

06 Jun 2012

The world sans Facebook may sound unbelievable, but after its stock slide a hedge fund manager has predicted that Facebook would "disappear" in five to eight years.

Eric Jackson, the founder of Ironfire Capital, said, in five to eight years Facebook would disappear like Yahoo.

He said Yahoo was still making money and was still profitable, with 13,000 employees working for it. He added, however, it was 10 per cent of the value that it was, at the height of 2000 and for all intents and purposes, it had disappeared.

According to Jackson there had been three generations of  internet companies so far, with Yahoo, a web portal, a great example as an online pioneer.

Facebook then swept in as the second generation on the social media wave and the third generation was all about mobile, he said.

While Jackson's prediction raised an online storm this week, other industry analysts say they would hardly be shocked if the prediction did come true.