Yet Another Facebook Story: Sell Now Before The Game’s Up

Earlier today, Valleywag reported that participation in Facebook’s developer forum is down, most likely due to Facebook’s new restrictions on Facebook-application spam. Valleywag praised these new rules, saying Facebook won’t miss its lousiest apps.
Now an executive from a major, well-funded widgetmaker says:

Your post misses the point. FB’s valuation is driven by the perception it can serve as a platform (or launching pad) for derivative businesses. Without that perception, FB is a $3-5 B company. Period. When developers lose enthusiasm for the “platform,” every FB employee has their net worth cut by 67%.

When Zuck announced to the ad industry last winter that his company was ushering in a new day, I knew Facebook was in trouble. It seems to me that Zuck and Co. are living inside a gigantic bubble, a bubble so big it doesn’t appear to be a bubble at all. Rather it’s simply the rarefied atmosphere of a well-endowed Silicon Valley startup. For now.

About David Burn

I wrote my first ad for a political candidate when I was 17 years old. She won her race and I felt the seductive power of advertising for the first time. Today—after working for seven agencies in five states—I am now head of brand strategy and creative direction at Bonehook in Portland, Oregon.