The weekends news surrounding social media marketing can often be described as slow, with many social networks unveiling any changes during the working week.
However the last seventy-two hours worth of news, have been anything but quiet or slow, as we briefly explain below.
Not only has it been reported that the global news network is on the verge of buying social media news website, Mashable, for $200 million upwards; but over the last three days the news has also brought mixed fortunes for two of the leading social networks.
Whilst Facebook is currently seen as the number one social network, the site has warned, in a document prepared for investors, that it could be forced to shut down if it loses a series of costly lawsuits.
Facebook are currently facing a number of lawsuits, including one from Yahoo, which Facebook have said “could have a significant impact on our business, financial conditions or results of operations” adding “the terms of such a settlement or judgment may require us to cease some or all of our operations or pay substantial amounts to the other party.”
Although the warning is thought to be no more than an exploration of worst-case scenario, it does pose a few questions about the future of the social network, as they themselves admit that they are “presently are involved in a number of lawsuits” before adding “as we face increasing competition and gain an increasingly high profile, including in connection with our initial public offering, we expect the number of patent and other intellectual property claims against us to grow.”
The warning comes on the back of other documents released by Facebook which reveals that between five and six per cent of its 845 million users were either fake or duplicate accounts.
In better news for the Facebook team, and Mark Zuckerberg, banks have doubled the overdraft available, from $2.5 billion to $5 billion; whilst creditors have also extended its $3 billion bridging loan to cover tax as some 3,000 staff prepare to exercise share options worth $7.5 billion.
It would appear that good news and bad news are in equal measure for Facebook’s nearest rival, Twitter, too.
Whilst Facebook has received a financial boost, with its overdraft being double, leaked financial results to Gawker report that Twitter is failing to capitalise on the vast users who regularly use the site, as a net loss of $67.8 million was racked up in 2010.
Unfortunately for the micro-blogging site the losses continued last year with a net loss of $25.8 million through to April 30th 2011.
However, despite the leaked financial reports, the good news for Twitter is that they are successfully managing to bridge the gap between consumers and businesses / brands, as they introduce new incentives.
Hot on the heels of the announcement that Twitter has teamed up with American Express, Twitter broke the news that they have finalised a number of partnerships with retailers and money providers that will offer customers discounts through what they tweet.
Some of the firms who’ve joined this partnership include H&M, Dell and Best Buy, and it is hoped that these new partnerships will build more in-depth interactions between brands and customers.
Twitter’s head of global revenue, Adam Bain said of the news: “This is just the beginning. You’re going to see a tonne of creative examples of people building on this platform – this is not just about giving people a deal or discount.
“Buying directly from tweets will be huge.”
Whether any of the above will have a large enough impact on social media marketing as we know it, remains to be seen. But should Facebook be forced to close some or all of its services, or should Twitter succeed in bridging the gap between brands and consumers, businesses using social media marketing are bound to benefit in some form.