You have probably seen these stories. First there was Microsoft Buys Stake in Facebook, and then a few days later, Google and Friends to Gang Up on Facebook. Another move and counter move in the computer arms race. Microsoft paid $240 million for only 1.6% of Facebook. That put the estimated overall value at $15 billion. Of course, someone would have to agree to pay that rate for the other 98.4% for the founder, Mark Zuckerberg, to get his $3B.

Then Google backed a plan to begin introducing a common set of standards to allow software developers to write programs for Google's social network, Orkut, as well as others, including LinkedIn, hi5, Friendster, Plaxo and Ning. This was to encourage people to write applications for other sites besides Facebook. I wonder how many people get their real value from Facebook from these third party applications? I am sure the gadget hungry people like them but what about the average user? The open architecture has inspired a lot of VCs to invest in start-ups writing applications for Facebook. Is that money well spent? I really like and use Facebook but I have not gotten involved in many of the applications so far.

Now if you are into Facebook apps here is a tool, App Accelerator, that allows you to turn your widgets into Facebook apps. It works with Flash and HTML/JavaScript widgets and you don't need to code. I wonder if they will support the other tools on the Google side?

Microsoft invested in Facebook to get part of the ad revenue. Google is trying to divert some of the action to other sites and, indirectly, to get a bigger share of traffic to these other sites. Who is making the best move? Perhaps both.