Boo! How Google (And Microsoft) Ripped Facebook’s Billion-Dollar Mask Off
Appropriately, the scariest day for Facebook comes today on Halloween in the form of a post from Ning’s Marc Andreessen announcing Google’s Open Social open web API that will essentially kill the app development momentum of Facebook developers. Open Social will allow these developers to create social networking apps across various platforms, without being hemmed in by the walled garden that is Facebook. Included in the initial rollout are Orkut, LinkedIn, hi5, Friendster, Plaxo and Ning
Andreessen explains it best when he says, “With the Facebook platform, app developers build to Facebook-proprietary languages and APIs such as FBML (Facebook Markup Language) and FQL (Facebook Query Language) — those languages and APIs don’t work anywhere other than Facebook — and then the apps can only run within Facebook. In contrast, with Open Social, app developers can build to standard HTML and Javascript, and their apps can then run in any Open Social container.”
Translation: Mark Zuckerberg should have accepted one of those early multi-billion dollar offers long ago, because now it’s game over. That $240 million that Microsoft just sunk into Facebook for 1.6 percent of the company will never actually materialize into the $15 billion valuation being tossed around.
I pointed out that Facebook was just the latest “hot club” months ago on Wired in the The Law of Diminishing Coolness. Now Google’s move with Open Social will prove this law to be truer than even Zuckerburg might have guessed.
DAMAGE TALLY:
-Unlikely Winner: Steve Ballmer
-New Zuckerberg Nickname: Bubbleboy
-Biggest VC blunder: Facebook app funds
-Repurcussions: Expect a Facebook sale announcement before the end of the year (that’s 60 days if you’re counting)
P.S. If you’re one of the adventurers out there actually betting against Google… well, I’d like to talk to you as soon as possible regarding the sale of an extremely undervalued bridge that will soon be for sale.
Photo by SVB



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