Friday, July 30th, 2010

Half Of All Facebook Users Play Social Games — It’s 40% Of Total Usage Time

Perhaps you’ve heard: social games maker Playdom was acquired by Disney a few days ago for a deal potentially worth north of $750 million. Playdom CEO John Pleasants took the stage today at our Social Currency CrunchUp in Palo Alto, to talk a bit about the deal and the future.

Pleasants says that he’s not exactly sure what his title at Disney will be yet, but he thinks he’ll be the General Manager of Playdom. He’s also not sure if Tapulous (another gaming company just acquired by Disney) will be under his department, but he doesn’t think so. And he made sure to clarify that the deal was for $563.2 million plus an earn-out of up to $200 million — so he’s not super super super rich, he’s just super super rich.

But the most interesting thing Pleasants noted was that he recently heard (from his own source, apparently) that half of all users on Facebook now play social games. More impressively, 40% of total usage time on the service is spent on these games. That’s meaningful, of course, because “a huge amount the Internet is on Facebook,” Pleasants stated.

When moderator Michael Arrington asked about changes Facebook has made recently to slow the viral spread of these types of games, Pleasants acknowledged they’ve all taken a hit. But he says they’re working with Facbeook on new ways to drive growth. But he made sure to say they had to do it without spamming.

When talking about what’s next, Pleasants notes that they’ve released two new games in the past week alone. When Mike suggested that most of the games are just a combination of blindly pushing buttons, Pleasants noted that things were evolving, and that games were about to get more social.

The biggest issue going forward though? “The lack of credit cards with children,” Pleasants half-joked.



Friday, July 30th, 2010

Bloomberg: No Facebook IPO Before 2012, Probably

Bloomberg reports that Facebook is to – probably – put off an eventual IPO until at least 2012, according to multiple people familiar with the matter.

Waiting at least another year (and a half, approximately, to be clear) would reportedly give CEO Mark Zuckerberg more time to follow through on his vision without too much public scrutiny and the implications thereof, attract more users and developers, book more sales and work out other issues, such as the user privacy kerfuffle and legal matters.

All this talk about Facebook going public at some time reminds me of similar chatter that has surrounded professional social networking company LinkedIn for years. In both cases, founders and management have repeatedly stated they’ll only IPO when the time is right, and repeatedly expressed that gaining more users and ramping up revenues are the current focus.

And in both cases, media outlets continue to speculate about when they’ll go public anyway.

Don’t get me wrong, both are bound to IPO at some point, and they’ll be high-profile and plenty impactful events. But my assumption is that for both Facebook and LinkedIn, the people who are to make said decision really do want to wait for when the time is right, and they most probably have clear milestones in mind to determine when that is.

It’s hard to predict the future, so it’s near impossible to determine when exactly those milestones will be met and everything falls into place, provided one would even know what the ideal situation in the minds of the decision makers is. Investors and other equity holders, e.g. employees, obviously want to cash in at some point, and secondary markets aren’t going to keep appeasing them in the long run. So yes, there’s going to be pressure, and increasingly so.

But who knows what will happen between now and, say, the next three years? Even if Bloomberg’s sources are extremely familiar with Zuckerberg’s thinking and plans, they too don’t know how quickly Facebook will grow, or what other events might on the other hand make Facebook want to delay an eventual IPO until 2013 or later, even.

It’s fun to speculate, but these reports need to taken at face value as such.