Social Media Giants Should Cash Out

The latest headline says Twitter is now valued at $8 billion. Here’s my advice to the founders of it and its fellow social media giant, Facebook. Sell! Sell now! Don’t wait another day! Follow the parable provided by Steve Miller and “take the money and run.”

I have several reasons for this opinion.

First, at least as far as I can tell, neither company has developed a reliable revenue stream. The services they offer are free to users and I’m sure they’ll remain that way. Facebook has a few ads. Twitter has promoted Tweets. But neither can expand its corporate presence much without alienating its base. People who use Facebook and Twitter, me included, don’t want the experience marred by marketing. So where is the operating revenue of these companies going to come from? After all, being influential and cool doesn’t pay the bills.

Second, the estimated value of these companies is outrageous as evidenced by the $8 billion estimated value of Twitter alone.

Third, the nature of technology is transient. When was the last time you logged onto to your computer via Prodigy or AOL? How’s that MySpace page working out for you? Unlike a package goods company like Coca-Cola, things get outdated pretty quickly on the Web. Sure, some tech companies have made it to Blue Chip status, but they’ve done it, in part, through diversification. Google is into everything, including maps and phones. Twitter and Facebook are standalone communities.

I congratulate the founders of these companies for holding onto their creations for this long. If I were them, I would have cashed in long ago when the companies were worth far less than they are today.

Why not cash in? I guess it’s tough to let go of a company you founded, nurtured and grew well beyond anyone’s expectations. But if I were these guys, I’d swallow my pride and get out while the getting is good. I can think of billions of reasons to do so. I’d let Microsoft, Google or one of my many other suitors worry about finding a revenue stream. Meanwhile, I’d be on the beach with a margarita, planning my next start-up or pursuing a life of leisure and philanthropy.

Appreciation for the Brickyard

After my agony at the Kentucky Speedway a few weeks ago, I’ve gained a new appreciation for the Brickyard 400 at the Indianapolis Motor Speedway (IMS).

They say attendance is down at the Brickyard. They say the racing isn’t up to par.

I’ve been to every Brickyard 400. If people are losing interest, you couldn’t tell it by me. My section is always packed with familiar faces, meaning people must be renewing their tickets year after year.

I’ll grant you IMS isn’t ideal for NASCAR. Since the track is 2.5 miles long, you see only a small piece of it. For that reason, I’d much prefer to watch a race at a smaller facility where you can see more -- or all -- of the track, like Kentucky.
However, in other ways, IMS has it in spades over Kentucky … at least based on Kentucky’s inaugural race. IMS has hosted big events for like a century, and it shows. The traffic flow is well planned, publicized, marked and managed.

Kentucky banned coolers at its race, saying it had no time to check them. IMS methodically checks coolers without causing delays.

Tradition is a mismatch. IMS is the track of the Andrettis and A.J. Foyt. You feel like you’re part of something bigger by being there. Furthermore, the crowd is a fascinating mix of sinners and saints. There might have been a nice atmosphere outside the Kentucky Speedway, but I wouldn’t know it, since I spent all my time in the car.

The Brickyard is the one day of the year I actually like listening to Bob & Tom on the radio as they preview the race while I drive to the track. On the way to Kentucky, I listened to the veins popping in my head.

And even the weather cooperates at Indianapolis. Although it’s always hot, the race has never been cancelled by rain.

So while I’d rather watch a Kentucky race, I’d much rather go to Indy.

Mr. Hand Wouldn’t Approve

In my favorite scene from my favorite movie, a surfer/stoner dude defies authority by having a pizza delivered to his high school history classroom. Now, I know how Jeff Spicoli from “Fast Times at Ridgemont High” must’ve felt.

My family recently spent several days on vacation at a somewhat upscale resort in Fort Lauderdale. The rooms were affordable enough, but everything else cost a tanned arm and leg. Having tired of $10 cheeseburgers, I concocted a solution. Channeling my inner Spicoli, I logged onto the Internet and ordered a couple $9 pizzas from Papa John’s.

I waited with trepidation, just like Spicoli must have. In my mind, chances were better of getting a pizza delivered to history class than to this resort. But to my surprise, the front desk called after the obligatory 20 minutes passed. I had a visitor in the lobby, they said.

As I strode across mosaic tile and past a couple of very proper concierges, a pizza guy waved for my attention. “Doug?” he inquired.

“Right here, dude,” I replied.

It was my Spicoli moment, only better. In the movie, Mr. Hand takes Spicoli’s pizza away and gives it to his classmates, whereas I got to literally taste victory.

Now if only I could save a girl from drowning and blow the reward money getting Van Halen to play my birthday party.

You've Been Served

Ever have a server so professional that he suggested three different tasty dishes for you at three different restaurants?

That was my unusual experience during a recent vacation in south Florida. On my family’s first day in Key Largo, we ate at Mrs. Mac’s Kitchen. That’s where I first met Carlos. I asked about fish tacos. Instead, he suggested a blackened fish sandwich, beans and rice, and key lime pie. All three were winners.

The next day, after snorkeling, we went for a bite to eat on another part of the island at a place called Sharkey’s Pub and Galley Restaurant. I was shocked to be greeted by – you guessed it – none other than Carlos.

Could my eyes be deceiving me? No. It seems Carlos works at both restaurants and goes to college to boot.

“You should get the fish tacos here,” he said, uncannily recalling the previous day’s conversation. I readily obliged. They were another winner.

When I mentioned the delicious dessert from the previous day, Carlos said The Fish House makes a mean key lime pie, too. Not one to break a streak, I naturally had to give it a try. I went to the Fish House and discovered yet another winner.

It fact, the only thing missing there was …. well, Carlos.

Traffic Time Could've Been Better Spent

Following is a list of the Top Ten things I could have done Saturday rather than wait in traffic for five hours outside the Kentucky Speedway.

10). Dethrone the national Donkey Kong champion.
9). Read the Unabomer’s manifesto.
8). Catch up on the Twilight trilogy.
7). Learn to play harmonica like a folk singer.
6). Eat more hotdogs than the Nathan’s guy.
5). Review all the software agreements I previously skipped.
4). Become conversant in Klingon.
3). Take the SAT for University of Kentucky basketball recruits.
2). Discover a new flavor of Snapple.
1). Design a better parking plan for the Kentucky Speedway.

That’s what I could have done rather than wait in traffic. How about you? I’m eager to hear what you could have accomplished.