Why Facebook is no threat to Google

Is Google (NASDAQ: GOOG) really feeling threatened by social networking property Facebook? Sensationalist media pundits think so, and the fuel is building on just when social networking websites will somehow "steal" customers from established internet properties like Google and Yahoo (NASDAQ: YHOO). Oh my, how the flavor of the month can get too many riled up in their seats.

After having perused Facebook for a while, I'm still in disbelief of how it's such a hot topic these days. Perhaps it is the virtual mall for the tweener and early twenty-something set. No problem with that. But, didn't MySpace.com have this title a year ago? How long is it since you've seen MySpace in the news outside of some sexual predator being busted for posting a profile there? I'm still wondering if Rupert Murdoch is secretly kicking himself over that one. Another question mark in my brain centers around Facebook founder Mark Zuckerberg, and why he has not cashed out at the pinnacle of his brainchild. Maybe the pinnacle is not there yet, but it's getting very close.

A really cool social networking technology called Second Life had its day (a very short one), and word has it that fans of the site are leaving in droves just as corporate sponsors start littering the environment with their wares and marketing messages. Coincidence? Or, are the target demographics for social networking websites as finicky as all get out? If Google is chasing the new "innernet," where you connect with those you want to interact with (and only those) using images, voice, chat or whatever, then it's chasing being un-innovative in this space. First-mover advantage is always where it's at (ask Yahoo! about Yahoo! Mail), and social networking is still just the flavor of the month in its current incarnation.

It may persevere, but the proof is only partly there. Business models and profit run a business, not page views and ad inserts alone. Although Google may be losing some top talent to Facebook, many are likely looking to cash out once an IPO or buyout occurs. Loyalty is a forgotten term (even with many brainiacs), and social networking has a bit to go to provide a sustainable business platform that works long term and consistently.