As Facebook’s imminent IPO (initial public offering) became the talk of the Silicon Valley and Wall Street, you might have read from the social networking site’s SEC S-1 filing that it pulled in more than US$ 1 billion in profit on revenue of 3.71 billion. What Facebook’s prospectus will not tell you is, that the social giant has taken a page from Tencent’s business model book, at least, that is the case according to the Chinese giant Internet company’s CTO.

Xiong Minghua, Tencent CTO said in a speech gave at the ChinaBang Awards ceremony initiated and hosted by the leading China TMT-centric English blog media TechNode, that five years ago or even earlier in its early stage Facebook countered with serious pitfalls such as where Facebook was heading to (product direction), how to make money (business model) and funding (who was willing to invest in an online alumi), which Xiong believed are the common problems concerned Chinese entrepreneurs. So how did Facebook solved these problems then grow to become the Apple of the Eye of both the bankers and the geeks?

“Frankly speaking, it(Facebook) learned a lot from Tencent with regard to business models”, according to Xiong, “Facebook and Tencent has communicated in depth on that front in Facebook’s early stage. I visited Facebook back in 2006 and they cared a lot about Tencent’s business models – especially our micro payment, they studied it thoroughly. Their staffs visited us many times and we had lots of communications in the past few years.”

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Ben Jiang

Listener of startups, writer on tech. Maker of things, dreamer by choice.