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Facebook could fade out like a disease: researchers
by Staff Writers
New York (AFP) Jan 22, 2014


Sandberg a billionaire as Facebook shares hit new high
San Francisco (AFP) Jan 21, 2014 - Facebook shares climbed to a new high on Tuesday, catapulting chief operating officer Sheryl Sandberg onto the roster of tech billionaires.

Shares of the world's leading social network closed the Nasdaq trading day at $58.51, shedding a few cents in after-hours trade.

Sandberg owns about $750 million worth of Facebook stock and is said to have sold about $300 million worth of shares since the California-based company became a publicly traded company in May of 2012.

The 44-year-old former Google executive is also reported to have stock options for nearly five million shares that began vesting last year.

The social media giant started by Mark Zuckerberg, which now has more than 1.1 billion users around the globe, had a rocky debut after it went public at $38 a share with a valuation of $16 billion.

Facebook shares dropped below $20 during the ensuing months and only climbed back over their offer price in July of last year.

Zuckerberg, who will turn 30 in May, has a personal fortune estimated at about $19 billion.

Facebook will release its quarterly earnings figures next week.

Facebook is like an infectious disease, experiencing a spike before its decline, according to US researchers who claim the social network will lose 80 percent of users by 2017.

Two doctoral candidates in mechanical and aerospace engineering at Princeton University made their astonishing claims in a paper published online at a scientific research archive, but not yet peer-reviewed.

Based on the rise and fall of MySpace, John Cannarella and Joshua Spechler say that Facebook, the largest online social network in history, is set for a massive fall.

"Ideas, like diseases, have been shown to spread infectiously between people before eventually dying out, and have been successfully described with epidemiological models," they wrote.

They applied a modi?ed epidemiological model to describe the dynamics of user activity of online social networks, using Google data that is publicly available.

It will make uncomfortable reading for the social media giant co-founded by Mark Zuckerberg, which has more than 1.1 billion users around the globe and turns 10 years old next month.

Their study said Facebook, whose shares climbed to a new high of $58.51 this week, has been in decline in terms of data usage since 2012.

"Facebook is expected to undergo rapid decline in the upcoming years, shrinking to 20 percent of its maximum size by December 2014," said the report posted online to peers at ArXiv.org.

"Extrapolating the best ?t model into the future suggests that Facebook will undergo a rapid decline in the coming years, losing 80 percent of its peak user base between 2015 and 2017."

The new research comes amid surveys suggesting that younger users started gravitating away from Facebook in 2013.

Cannarella and Spechler told AFP they did not wish to comment publicly in person until their manuscript had completed its peer review process ahead of formal publication.

But at least for now, Facebook's fortunes are in good health.

Rising share prices have made chief operating officer Sheryl Sandberg the latest tech billionaire and Zuckerberg, 29, has a personal fortune estimated at about $19 billion.

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The personal data of at least 20 million bank and credit card users in South Korea has been leaked, state regulators said Sunday, one of the country's biggest ever breaches. Many major firms in the South have seen customers' data leaked in recent years, either by hacking attacks or their own employees. In the latest case, an employee from personal credit ratings firm Korea Credit Bureau ... read more


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