If your company is operating in the social media space and Facebook Inc (NASDAQ:FB) decides to board the ship, what options do you have? That even goes for tech giants like Microsoft Corporation (NASDAQ:MSFT). It is certainly a spot that many would hate to be in, and Microsoft just got itself into it.
On Bloomberg, Cory Johnson and Strauss Zelnick, Chairman and CEO of Take-Two interactive, discussed the very real possibility of Facebook Inc (NASDAQ:FB) entering the realm of communication at work, as the company is said to test its version of social platform which is more adaptive to a working environment. The reason why it gives, or at least should give, Microsoft Corporation (NASDAQ:MSFT) jitters is because it bought Yammer in 2012 for $1.2 billion, which serves a similar purpose.
Zelnick shed some light on the potential of this new line of business and how it was a natural choice for Facebook Inc (NASDAQ:FB) to finally enter it.
” I think that people are looking to connect electronically. I do think that LinkedIn offers a great product. There is a company called relationship science, which is playing in the same space, and I think to the extent that your team is on Facebook Inc (NASDAQ:FB) anyway, I think the notion of creating a professional application makes sense,” said Zelnick.
Johnson explained how in today’s digital age, especially in the social media arena, the main objective of companies like Facebook Inc (NASDAQ:FB) and Microsoft Corporation (NASDAQ:MSFT) is just to get people to use their platform. They don’t even have to charge subscription fees to be profitable after that. The data that they will gather on their users will service the top line just fine.
“[…] So if people are using Facebook Inc (NASDAQ:FB) then that is an approach that is working, if people are using Yammer, then that is an approach that is working. Facebook is going to look at this and say, hey what can we offer the enterprise that will help us get data on users […],” said Johnson.
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