Mark Cuban is Fed up With Facebook
Back in the dark days of the summer, Facebook was encountering all sorts of trouble with their commercial offerings, with the likes of GM ditching their ad campaigns on the site. Investors responded by slamming the Facebook stock, scared and wondering just how the site would make money.
Have things improved since then? Not for Mark Cuban. The tech billionaire and Dallis Mavericks owner is sick of Facebook and is taking his business elsewhere.
The rumblings of discontent started a fortnight ago when Cuban tweeted a screenshot of an offer made to him by Facebook to reach 1 million people for $3,000. Alongside the image he wrote, "FB is blowing it? This is the first step. The Mavs are considering moving to Tumblr or to the new MySpace as primary site."
Now it seems that he's doing more than consider a move, he's actually doing it. Sadly for Facebook, it isn't just the Mavericks that are moving but all 70 or so companies that Cuban invests in.
"We are moving far more aggressively into Twitter and reducing any and all emphasis on Facebook," Cuban says, via an email to ReadWriteWeb. "We won't abandon Facebook, we will still use it, but our priority is to add followers that our brands can reach on non-Facebook platforms first."
His anger is because Facebook are making it harder to reach people without spending significantly on sponsored posts. A recent algorithm change has seen Page updates reach as many as 50% fewer fans as was previously the case.
Facebook counters that the EdgeRank driven changes were done purely to counter spam in peoples news feeds, not to drive more revenue.
Cuban is far from convinced however. He continues.
"The big negative for Facebook is that we will no longer push for likes or subscribers because we can't reach them all. Why would we invest in extending our Facebook audience size if we have to pay to reach them? That's crazy."
"In many respects it has already blown up on Facebook. Their search for revenue has severely devalued every brand's following and completely changed the economics of consumer interaction."
He goes on to reveal the sense of betrayal that he has invested heavily to grow the fanbase, only for Facebook to then say he can't talk to all of them without sponsoring the post.