In Challenge to MySpace, Facebook Opens Up

Networking site sets its sights on platform model

By Sam Gale Rosen, Newser Staff

Posted May 25, 2007 11:51 AM CDT

(Newser) – In a challenge to social-networking giant MySpace, Facebook will open itself to outside software developers. With 65 partners—including Microsoft and Amazon—cleared to build web applications within the site, the scrappy No. 2 is attempting to transform itself into an all-in-one destination. The lure: Partners don't have to pay for access or share revenue with Facebook.

Facebook has expanded beyond the college audience over the past year but lags MySpace in members, 24 million to 67 million. CEO Mark Zuckerberg, 23, predicts that the new applications will entice users to spend more time on the site and make purchases from partners. Analysts foresee a Yahoo-type platform model, but Zuckerberg says, "We're working on passing Google next."

[Images (4)]

[Videos (1)]

Facebook.com founder Mark Zuckerberg smiles at Facebook headquarters in Palo Alto, Calif., in this Feb. 5, 2007, file photo. Facebook Inc. has avoided the acquisition frenzy that's gobbled up MySpace.com,... (Associated Press)

Mark Zuckerber, the founder of Facebook, a networking tool for college students that has become very popular. College students use it to meet people, re-connect with old friends, and arrange events. T (KRT Photos)

My facebook friend map ((c) ethorson)

Facebook story sliders ((c) joshuakaufman)

« Prev« Prev | Next »Next » Slideshow

How to Facebook: Part 1 (PurpleDuckFilms (YouTube))

View larger videos >>

« Prev« Prev | Next »Next »

To report an error on this story, notify our editors.

More Newser Stories

Insider Sales Put Facebook's Value at Fraction of $15B

Even CEO Zuckerberg reportedly selling still-private options at bargain prices

(NEWSER) - Though the stake bought by Microsoft last fall pegged Facebook’s value at $15 billion, a rush of stock sales by insiders at the still-private company shows they think it’s worth much less, BusinessWeek reports. Even Mark Zuckerberg, founder and CEO of the social-networking giant, reportedly has sold some shares, and trouble could be looming in Silicon Valley. More»

Growing Pains Plenty Evident at Facebook

But Zuckerberg stays put, gets veteran help after hitting potholes

(NEWSER) - Facebook is seeing a lot of challenges lately, with ads selling at rock-bottom prices, revenue not nearly rivaling MySpace, and third-party developers defecting to OpenSocial networks (MySpace, again). But unlike other companies’ young founders, Mark Zuckerberg isn’t about to step aside. And thanks to his tight control of Facebook's board, he’s not about to be pushed out, either, Fortune reports. More»

Facebook Seeks Hedge Fund Cash After Microsoft Deal

Social networking site now valued at $15B

(NEWSER) - After raising $240 million from Microsoft, the social networking site Facebook expects to raise a further $260 million from hedge funds and private-equity investors, according to the Wall Street Journal. The cash will be used to fund an international expansion and a new ad revenue system. The investment would put the value of Facebook at $15 billion. More»

Facebook Has Scads of Cash: Leak

Source reveals finances to Gawker

(NEWSER) - Facebook is pretty much made of money, a knowledgeable source tells Gawker . The site has raw numbers as of September, which Ryan Tate calls “the Silicon Valley equivalent of hard-core pornography,” and they show that the social networking site will probably earn almost $1 billion in profit this year. That’s more than double last year’s reported profits and quadruple the year prior’s. According to the source, Facebook had the equivalent of $3.5 billion in cash as of September. More»

Blame Yourself for Facebook's Lack of Privacy

Site is all about sharing, so stop expecting a 'silver bullet' fix: Farhad Manjoo

(NEWSER) - Facebook is submitting to a government crackdown on privacy, and Mark Zuckerberg acknowledges “a bunch of mistakes” on that front. But the site’s privacy issues are as much our own fault as Zuck’s, writes Farhad Manjoo in Slate . The “idea that we can control the audience for anything we post online” is simply “misguided,” he writes. “The entire point of Facebook is to allow us to connect and share stuff.” More»

NEWS FROM OUR PARTNERS

What is Newser?

Face it: there's too much news. At Newser, we choose the most thought-provoking and entertaining stories from hundreds of US and international sources and reduce them to a headline, picture, and two paragraphs. And we do it 24/7—you can come back morning, noon, night (and in between) for something new that matters. Read less, know more.

Learn more »

Partnering with: Slate

View Newser on the mobile website

In Challenge to MySpace, Facebook Opens Up