As someone working on a social media app, I call bullshit. "The funding for these companies is plentiful because there is a serious bubble?" Now is the worst possible time to be building a new social network, because of the failures of Facebook, Zynga, Groupon, and pretty much everything else last year. Investors have a pack mentality, as he says, but the pack has totally shifted.

Also, he claims that Facebook and others' business models have failed because they don't convert well, or because their users are "forced" to use them. So what if only some Pages have used the product? Those are the companies that get value from it, and they'll continue to pay for it. And Facebook has other sources of revenue. I hardly think it's an example of a failed business model.