How to loose 27 million dollars
Friendster is the recent scapegoat for the biggest Dot Com flop since Pets.com. Jonathan Abrams, founder, is the one taking most of the blame. While Abrams' new project Socializr (Evite copycat) is gaining market share, his indisputably darkened reputation is the reason Harvard Business School uses him as a case study of how NOT to manage a tech company. Friendster turned down a $30 million buyout offer from Google in 2003 to find its current market share diminish down from 1st to the 13th among the social networking sites, and current evaluation to be around $3 million.
Interestingly enough, Friendster was not the first failure for Abrams. After working as a software engineer for Netscape, Jonathan's first startup project was HotLinks, which ran out of money in 2001.
Read more in a great cover story on how too much success can lead to forgetting to solve most trivial problems of software, and having too many cooks in the kitchen can lead to a dysfunctional company - from Inc magazine right here.
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In a few years, it is to be expected that Friendster will run out of fund and probably be closed down. Why? It's lack of features, it's buggy layout designs, plus the fact that facebook, myspace and twitter are better than Friendster makes it very hard for Friendster to go back to what it once was.
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