Will Facebook Acquire Applications?
Posted by Nick O'Neill on June 20th, 2007 12:00 PMOne has to wonder what the exit strategy of a successful Facebook application is. Applications can either be used to increase your existing user base, generate cash flow through advertising and affiliate programs, or try to sell the app. So who do you sell your application to? My guess is that if any developers come up with extremely useful applications Facebook will possibly buy them out early on at a relatively cheap price. Conversely, I don’t think they will spent a lot of money trying to purchase applications such as iLike which has been extremely popular, but has much more useful competing applications (Facebook Music). So if you have a really catchy idea and have the capability to make the application scalable, there may be the possiblity that Facebook will acquire your application. While it hasn’t happened yet, I am willing to bet that we will see this happen soon. Additionally, there is still significant revenue to be gained through advertising resources.
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June 25th, 2007 at 9:15 am
instead facebook will probably charge a royalty/license fee to use their platform
June 25th, 2007 at 10:15 am
instead facebook will probably charge a royalty/license fee to use their platform