In Facebook, Investing in a Theory

From The New York Times - The Facebook frenzy is spreading.

Thousands of software developers are creating features for Facebook, the rapidly growing social network, many hoping to strike it rich alongside Facebook’s own employees.

Facebook, based in Palo Alto, Calif., opened its service to outside developers this spring, inviting them to create tools for the site and to try to profit from them. Since then, more than 4,000 “applications” have flooded onto the site, spicing it up with games or whimsical programs called widgets that let you turn your friends into virtual zombies and more practical tools that let users display images of their favorite books, music, movies and wine on their profile pages.

The wave of attention from users and developers has sent estimates of Facebook’s value soaring into the dot-com stratosphere. Last month, there were reports that Microsoft was considering a $500 million investment that would value the three-year-old company at up to $15 billion. | Read full article