With the number of content partners on Facebook’s Open Graph constantly increasing, information clutter has always been a concern for users. However, with the launch of “Interest Lists,”  the company is hoping to reduce the information overload on its news feed, thereby presenting users only with information they are interested in. Facebook leads the social networking space and competes for ad dollars with players like Google (NASDAQ:GOOG) and Yahoo (NASDAQ:YHOO).
With User Base Expanding, Facebook Needs to Control Information Further
As people get added to Facebook’s network, a common concern among users is that their news feeds are often filled with information they find unnecessary. To solve this problem, the “Interest List” lets a user subscribe to a broad topic like sports or food. Accordingly, the user’s news feed is designed to predominantly show content from his/her subscribed topic(s). This latest move is well timed by Facebook, especially as the company was facing criticism over the surge of content on news feeds as partners to the Open Graph keep growing.
The updated Trefis valuation for Facebook stands at roughly $74 billion based on the revisions to our forecasts for Facebook’s metrics, including revenues, EBITDA margins, capital expenditures and net working capital.