Facebook Dismisses Shutdown Rumors

Facebook addicts recently got a scare when the tabloid Weekly World News reported that the social networking site would be shut down permanently after March 15, 2011. But Facebook brass says that's not about to happen.

Despite the controversial reputation of Weekly World News (whose content usually concerns UFO sightings and escaped freaks of nature), the shutdown rumor spread across the web rather quickly. Weekly World News (WWN) reported the decision to shut Facebook down was the work of CEO Mark Zuckerberg, who reportedly had said running the incredibly popular site was becoming too stressful for him to manage. (Source: cnn.com)

Facebook "Didn't Get the Memo"

Facebook didn't take much time to respond. In fact, the company suggests there are big plans ahead in the coming months.

"We didn't get the memo about shutting down, so we'll keep working away like always," a Facebook representative said. "We aren't going anywhere; we're just getting started." (Source: computerworld.com)

There's no doubt Facebook deserves credit for not taking shots at WWN, but other industry analysts aren't being so kind.

"It's hard to believe that anyone would take this seriously," noted Gabriel Consulting Group analyst Dan Olds. "But Weekly World News readers probably have bigger things on their minds, like their story about aliens attacking Earth in 2011 or the story about developing the skills to be invisible and levitate."

Leaked Documents Show Huge Profits

If you don't trust Facebook's own statement that it isn't about to go anywhere, the company could point to another recent and massive investment as proof things are just fine. Last week Goldman Sachs and Digital Sky Technologies announced they had invested $500 million in the company, giving Facebook a total valuation of $50 billion.

Recently leaked documents show that in just nine months last year Facebook generated profits of $355 million and revenue to the tune of $1.2 billion. Businessweek estimates the company will generate profits of $1 billion in 2011.

Given those numbers, most analysts agree Facebook is most definitely here to stay.