Mark Cuban, businessman and owner of Dallas Mavericks, isn’t happy with Facebook Inc (NASDAQ:FB) and he’s not afraid to express his discontent.
Cuban recently shared a screenshot of an offer made by Facebook Inc (NASDAQ:FB) which said he could reach one million new users for $3,000. He said, “FB is blowing it? This is the first step. The Mavs are considering moving to Tumblr or to new MySpace as primary site.”
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In a recent email via ReadWriteWeb, he talks more about his plan of action, “We are moving far more aggressively into Twitter and reducing any and all emphasis on Facebook. We won’t abandon Facebook Inc (NASDAQ:FB), we will still use it, but our priority is to add followers that our brands can reach on non-Facebook platforms first.”
This change will affect all seventy-plus companies he’s invested in.
So what exactly is Cuban’s problem with Facebook? Thanks to the new EdgeRank system, the social media website has made it tougher for companies and brands to reach people without spending a lot of money. The company claimed that this new change was to prevent spam from entering people’s feeds, but it’s apparent that finances are most likely a bigger factor.
Cuban said, “The big negative for Facebook Inc (NASDAQ:FB) 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.”
Facebook’s new system isn’t good for companies, but there is no denying that Mark Cuban may be making a huge mistake. As Ryan Tate from Wired elaborated, most of their Maverick fans are on Facebook Inc (NASDAQ:FB) and that users are savvy enough to filter out posts that are relevant on their feed. Hopefully, he will realize that before it’s too late.