Earlier today, we reported that participation in Facebook's developer forum is down, most likely due to Facebook's new restrictions on Facebook-application spam. We praised these new rules, saying Facebook won't miss its lousiest apps. Now an executive from a major, well-funded widgetmaker tells us, "Your post misses the point." Before you reach for the "Block" button, hear him out:

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%.

1:40 PM on Wed May 7 2008
By Nicholas Carlson
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6 comments

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sample032 at 02:06 PM on 05/07/08
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What he calls "perception," I call "a risky bet."
sggrf at 02:07 PM on 05/07/08
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It's ridiculous to place your bet on a site that barely generates revenues yet and plans to have a down year in 2008.
sample032 at 02:22 PM on 05/07/08
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@sggrf: Not only do they barely generate profit (revenue might be a little better), but they don't know how to monetize their platform.

Early on, Microsoft whored Windows out less (how many ads did they have for third party apps?), and they actually charged for their platform. Microsoft should be the last company interested in Facebook.
pleinad at 02:43 PM on 05/07/08
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I agree with the widgetmaker comment. Building a new web site takes alot more time to get eyeball as oppose to having the platform for millions of users. However, the lousy app comment is true. Developers are not spending enough time and you see alot of apps now embedding their own ads. If they're allowed to continue, FB is just another myspace pimping ads and ugly designs and zero functionalities.
Fidel on the Roof at 07:19 PM on 05/07/08
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1) FadBook is not worth billions. It never has and will never be.

2) App developers should do something worthy of their time. Salesforce.com, amazon ec2, or any sane and legitimate outlet makes more sense.

3) Most people bunch myspace, fadbook and second life in the same phrase...
Figaro at 10:52 PM on 05/07/08
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FB is just a fancy contact list. Nothing more, nothing less. If you think something like that's worth billions as we're entering recession and when the number of branding ads is falling each day, I have a bridge to sell you cheap.