Facebook Inc (FB), LinkedIn Corp (LNKD): Two Companies That Will Grow In a Declining Publishing Industry

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Now, recent reports state that Facebook is developing a service called Reader, which will reveal news content to its users. While specific details have not been released, the news service may become a fundamental business unit for the social networking giant in the future.

In addition to becoming the go-to site for professional networking and job searches, LinkedIn Corp (NYSE:LNKD) is moving toward being a primary player within the news industry.  In April, it acquired Pulse, a mobile application that enables users to create custom news feeds. The service is said to be similar to Facebook’s Reader.

Also, coupling users’ personal and professional information with the news information available through Pulse enables Linkedin to collect massive amounts of data. In turn, and similar to Facebook Inc (NASDAQ:FB), LinkedIn Corp (NYSE:LNKD) can offer even more targeted advertisements and services to its user base.

Facebook and LinkedIn Corp (NYSE:LNKD) have the same goal: be the go-to source for immediate, relevant news information. However, they have different motivations driving them. Facebook Inc (NASDAQ:FB) hopes to regain favor among investors after falling around 36% since its IPO, while Linkedin simply wants to continue to grow.

Conclusion

Due to declining revenues, the publishing industry as we know it is undergoing major reconstruction. As a result, social and professional networking firms with large numbers of users are moving rapidly to become the relevant, go-to source for news. Long-term Facebook Inc (NASDAQ:FB) and Linkedin investors will likely be pleased with their investments, as the dawn of the modern news era goes viral.

It’s incredible to think just how much of our digital and technological lives are almost entirely shaped and molded by just a handful of companies.

The article 2 Companies That Will Grow In a Declining Publishing Industry originally appeared on Fool.com and is written by Brendan Marasco.

Brendan Marasco has no position in any stocks mentioned. The Motley Fool recommends Facebook and LinkedIn. The Motley Fool owns shares of Facebook and LinkedIn. Brendan is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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