Facebook Inc (NASDAQ:FB) Face Difficulty In Maintaining Dominance

Facebook Inc (NASDAQ:FB) a pioneer social networking firm is an attractive start-up company for many social networking firms. Previously the US social networking company put forward a bid to acquire  Snapchat, in order to expand its canvas to attract more online users for its website, however it was rejected by Evan Spiegel co-founder of Snapchat, as he did not see future for his company by merging in Facebook.

Mr. Spiegel thinks the future of Snapchat is something much larger than just adjusting itself under FB, a social network that could exist on its own. But despite this fact Facebook Inc is still a top player in social media firms. However Snapchat rejected the bid by US top social networking firm as it notion it could generate more than the billions it was offered by FB.

Currently the US social networking firm dominates the social networking sector, but the constant increase in competitors in the sector will create   bigger opposition for the company as users will have more options to spend their time online.

The refusal from Snapchat also depicted a changing perception of the US social networking giant in the tech industry. As new firms in the sector go for other alternative option as they are not capable of competing with the social networking giant on the same ground. So the proposal from FB will crush their entire perspective by merging with the social giant.

The study from American Life Project and Pew Internet also suggest that among some users the regular use of the site has resulted in Facebook fatigue, due to which users taken a multi-week break from the site quoting irrelevancy and tedium of its content. The study also suggest 38% users revealed they likely to utilized less time on the site in 2013.

This decreased in number of users will also directly affect the number of ads on the site as well as decreased of developers who develops apps for the Facebook’s platform. Shares of Facebook Inc (NASDAQ:FB) were rose 0.39% to $49.20 in premarket. In last session FB closed at $49.01.