New accounts and activity on Facebook's developer forums are down dramatically since January, reports Adonomics founder Jesse Farmer. And as the above chart indicates, Facebook's users no longer add third-party Facebook applications as much as they did at the beginning of the year. Along with increased competition from social network Hi5 and consolidation into larger widgetmaking companies, Farmer blames the slowdown on Facebook for "instituting increasingly demanding and arbitrary rules on platform developers, which they then enforced selectively and for their own benefit." We agree the slowdown is likely the result of the new rules, but we don't so much blame Facebook as praise Facebook for them.

Sure, Microsoft would buy Facebook, but management knows Zuckerberg's not going to sell — and unlike Yang, he controls his company's board. As for Yahoo, well, "Yahoo can twist," one source told BoomTown. "Microsoft has lots and lots of other options." Redmond's favorite? Granola. Microsoft's internal plans for a post-Yahoo reality are code-named "Project Granola" because the company now wants to grow its online properties "organically," like every hippy's favorite breakfast food. But to us, the name seems utterly fitting in its blandness: Microsoft chairman Bill Gates told the WSJ that Microsoft's big plans include more "advances" in search, more marketing and more meetings in Redmond, Washington. That kind of bureaucratic strategy sounds like management needs a high colonic, not just more dietary fiber. (Photo by Adry Long)

Sources close to Microsoft say the company's bankers have begun signaling to Facebook CEO Mark Zuckerberg interest in acquiring his company. "We just want to gauge their interest, more than any real effort," one source told Kara Swisher, who first reported the news. These bankers figure there's little chance Zuckerberg will agree to sell to anyone but the public in the next few years, but that "putting out subtle signals," as Swisher reports the bankers call them, is worth the effort if they pay off. Last fall, Microsoft purchased 1.6 percent of Facebook for $240 million. Unsolicited advice for Zuckerberg: Be careful with the high-fives.

At 21, Darian Shirazi, is just old enough to order a drink at the bar of Junoon, the Palo Alto Indian restaurant where this shot was snapped. But he's already logged two years at Facebook, the sale of one company, and a round of funding from Draper Fisher Jurvetson for Redux, his current startup. That was enough to draw the interest of John Hawksley, an MIT-trained engineer who interned last summer at Google and who, in 8th grade, starred on Dick Clark's Battle of the Child Geniuses. (Hawksley doesn't turn 21 until May 22.) Our tipster spotted the two in mid-job interview, or so he claims. Can you suggest a better caption? Do so in the comments. Yesterday's winner: "How could we all be picked last?" by longtailwagsthevalley.

When a Facebook user adds "skiing" to the interests on their profile, it's hard for an advertiser to tell exactly what the user means. A Google search for "Ski rentals in Wolf Creek, Colorado" is much more informative, by contrast. Advertisers know what kind of pitch to deliver, albeit in the form of an AdWords haiku. Inside Facebook's Justin Smith argues advertisers have an easier time targeting users of Facebook apps — for example, one who installs a skiing weather-map application, and looks up conditions in Wolf Creek. It's one reason he says that Facebook applications will prove easier to profit from than Facebook itself.

Netscape cofounder and propagator of porn social networks Marc Andreessen will join Facebook's board of directors, Kara Swisher reports. Andreessen will join current board members Accel Partners Jim Breyer, Clarium Capital's Peter Thiel, and Facebook CEO Mark Zuckerberg. Andreessen is the chairman of Ning, a company which sells tools for rolling your own social network. If your mom has an excellent visual memory, she will probably remembers him for appearing on the cover of Time magazine without shoes on. You can tell her that he dresses better now, but only slightly. Why Andreessen, and not a proxy for new investors Microsoft or Li Ka-Shing?

That was fast. Not only has BoomTown confirmed our earlier report that Elliot Schrage, Google's top flack, had interviewed at Facebook; he's been hired, too, according to an internal memo sent by CEO Mark Zuckerberg from India. Which is odd: At a meeting earlier today, asked about the Valleywag item on Schrage, COO Sheryl Sandberg feigned ignorance about Schrage's interviewing for the job, but talked up what a great fit he'd be with her, given their shared Harvard, D.C., and Google backgrounds. First Sandberg threatens to shoot Valleywag, and now she's agreeing with us? At least one member of the Google PR team concurs with Sandberg on this much: Better that he go to Facebook than stay at Google.

Commenter Facebookcanhavehim shares this thought on Google überflack Elliot Schrage's prospective departure for Facebook:

Facebook Games Day 2008 is over and by the looks of these uniforms, our guess is that everyone on the "Bee-otches" team was a very "special" winner. Write a better caption below and we'll rename the post with it. Friday's caption contest winner is Peteski with: "Commercial casting, open call, Best Buy Inc." (Photo courtesy of the Valleywag tips line)

The employee at Ping Pong Music who had his drivers' license inadvertently published by Facebook for all the world to see tells us he's discovered at least two more licenses exposed by the site. He found one on the Facebook page for music group Switchfoot and the other on the page for Ben Kweller. Facebook allows musicians and their labels to promote music through official Musician Pages, but before allowing them to upload music, Facebook requires the page administrators to submit identification in case of copyright .The Ping Pong Music employee tells us he's tried to contact Facebook about the problem — sending four emails and calling four times — but all he's gotten in response so far is the following brushoff via email:

Mandatory age checks aimed at verifying users may not do much to protect children on Facebook, MySpace, Bebo, and other social networks. A task force on the behavior of teens on social networks found that the majority of young people who've actually had sex with adults they met online did so without any sort of deception. Does this mean that men in their fifties no longer have to go about pretending they like Hannah Montana if they want the affections of the underaged? No, it just means they're already onto you, dude. (Photo by generated)

Are Elliot Schrage and Sheryl Sandberg about to stage a policy-wonk reunion in Palo Alto? When she worked at Google, Sandberg, now Facebook's COO, helped recruit Schrage from the Council on Foreign Relations. Having taken charge of Facebook PR, Sandberg is looking to hire a VP of communications with experience in public policy. Since most Valley flacks are weak in knowing the ways of D.C., that job description is tailor-made for Schrage. Sources tell us he has already interviewed at Facebook. And we hear he's more than ready to leave Google, chiefly because of its philanderrific CEO, Eric Schmidt.

Tracey Grinhaff, a 42-year-old mother of two in Sheffield, England, was murdered by her angry husband after she posted a message on her Facebook page saying that she was leaving him. Cops found her body in a shed in the back yard of the couple's house, and her 41-year-old husband Gary's body was found in the woods nearby. She died of head wounds, and so did he, although his were self-inflicted. Apparently the message made him extremely angry:

"Cathy Brooks is a typically unapologetic Silicon Valley Web addict," writes Brad Stone in the New York Times. "Last week alone, she produced more than 40 pithy updates on the text messaging service Twitter, uploaded two dozen videos to various video sharing sites, posted seven photographs on the Yahoo image service Flickr and one item to the online community calendar Upcoming." Usually, when one identifies a friend as an addict, an intervention is in order. But Stone, who seems to have spent so much time in San Francisco's tech circles that he's gone native, suggests more technology instead: Specifically, FriendFeed, which gathers all of this online activity in one place, making it marginally easier for Brooks's benighted friends to keep up with her online logorrhea.

Two weeks ago, 42-year-old British woman Tracey Grinhaff changed her Facebook status to say she was "currently splitting" with her husband and that they'd "Been married for 16 years but together for 26!!!! God that makes me sound old." Then Grinhaff's husband, 41-year-old Gary Grinhaff bludgeoned her to death and, shortly after, killed himself. Neighbors, according to London's Daily Mail called the Grinhaffs "the perfect little family."

Sources familiar with Microsoft tell the WSJ they expect CEO Steve Ballmer to target another large Internet company for acquisition soon. Noting that few companies have the size to boost Microsoft's business, Ballmer himself listed Facebook and News Corp.'s MySpace as properties that could help Microsoft control the Internet as it did the personal computer. Others want Ballmer to buy AOL for its massive and cheap inventory. (What, are they pulling for a Nsync reunion tour as well?) Microsoft could easily better Yahoo's $10 billion offer for AOL, says SAI's Henry Blodget. But there's a reason AOL is cheap, people.

Why has Mark Zuckerberg courted disaster by offending the developers who helped make him worth $4 billion on paper? He has no one but himself to blame, says the CEO of a top Facebook widgetmaker. Facebook failed to control application spam last summer, he says, after it launched its platform. And so last night Facebook revised its rules to allow the applications with favorable user-feedback ratings to send more notifications and invitations. Apps with bad reviews will now have tighter restrictions. It's too little, too late, our source tells us.

Beware MorphMonkey's invitations to morph you and a friend into love children on Facebook. The American Social Health Association has infected the MorphMonkey app with chlamydia, transmitted each time you make spawn with it. ASHA's video tutorial doesn't explain why Facebook condoms can't protect you from Facebook VD, or how the kids used to deal with virtual infections back in the days of AOL chatrooms and fingering each other's Unix .plan files, but it is sort of sexy in an afterschool special way:

For the past two days, only applications from Max Levchin's Slide have appeared in MySpace's featured application page. Smaller developers asked why, the Social Times reports, and found out it's because Slide pays. On the order of around $50,000 to $100,000 per week, these developers say. Facebook does not charge application makers to feature them, ranking apps instead on user activity and feedback. The Social Times notes that MySpace's Sponsored App program could keep small developers from gaining popularity on MySpace. Whatever it takes to keep Vampires and Zombies at bay, we say.

It's hard to count the ways Mark Zuckerberg botched the launch of Facebook's "Social Ads" last fall. From the portentous talk of a once-every-100-years "change" in media, to the privacy brouhaha over Facebook's Beacon technology, Facebook's inexperienced CEO did just about everything wrong. At last, he's starting to get things right. Facebook has begun encouraging advertisers with sponsored groups to shift to Facebook Pages instead. Apple, with the largest sponsored group, has moved 400,000 members of its Apple Students group to be "fans" of the Apple Facebook page instead. It's a big, risky, and potentially costly change.