Last fall, Facebook tried and failed to acquire Twitter for $500 million in Facebook stock.The deal blew up when Twitter learned Facebook valued itself somewhere around $8 billion while its stock was going for closer to $4 billion on the market.
So what has Facebook CEO Mark Zuckerberg done since?
He has followed the model set by his tech business hero, fellow Harvard dropout and Microsoft cofounder Bill Gates.
Throughout his career at Microsoft, when Bill Gates came up against a rival with an impressive product, his standard move was to dedicate Microsoft’s resources toward coming out with a Microsoft version of the product. Microsoft would then refine that version–and, ultimately, in many cases, build a better one–while slowly but surely driving the innovator’s product into irrelevance.