Slide and RockYou, the two largest developers of Facebook apps, have long had a serious rivalry over the most frivolous Web software. But the two may be pulling apart. Slide, Max Levchin's SuperPoke machine, signaled yesterday that it's betting on online entertainment, partnering with Hollywood to bring mainstream content to its FunSpace apps. RockYou, meanwhile, seems to be turning into a gamemaker. "We want to be like the Electronic Arts of social networks, and build games for social networks," RockYou CEO Lance Tokuda, shown here, said today at the Startonomics conference in San Francisco, referring to the dominant maker of videogames.Build, or perhaps buy. In July, RockYou acquired Speed Racing, one of the top games on Facebook. But RockYou, in diverting its attention from its rivalry with Slide, will face well-funded competitors in startups Zynga and SGN. By the time all this becomes a serious business, isn't it just as likely Electronic Arts will be the Electronic Arts of social games?

RockYou CEO and cofounder Lance Tokuda told Silicon Alley Insider the No. 2 Facebook widgetmaker plans start selling ads in traditional verticals, starting with classifieds-like car ads in its SpeedRacer widget. "He was scant on details," reports SAI. We think Tokuda and company will end up going forward with a different plan — maybe one that puts car-company brand advertising in its widgets. Because when's the last time anybody looked for a car to buy inside a racing videogame? (Photo by ninjapoodles)

Despite the rumors, we all know widgetmaker RockYou isn't really worth $400 million. Not with the way ad buyers feel about spending on social media. We hear RockYou's latest investor, Doll Capital Management — which funded the company with another $35 million today — didn't value the company at $400 million either. "I believe the round was priced at $250 MM, and definitely not higher than $300 million to $325 million," an executive familiar with the deal says.

Twitter, the 140-characters at a time blogging service, was shaped by its founder's dry, understated sense of humor. The company, not to mention the service, seems to be a sort of Silicon Valley inside joke that, improbably, Ev Williams and his fellow Twitterers have managed to play on the rest of the world. For this, Sarah Lacy labels Williams a "nontrepreneur." Fittingly, Sarah Lacy gave his microcompany got a mere four pages in her new book, Once You're Lucky, Twice You're Good:

RockYou, the widget maker best known for Facebook's Super Wall application, has hired Morgan Stanley to raise a new financing round at a $400 million valuation, according to a hedge fund manager whom the investment bank solicited for the deal. Slide, a competitor, recently raised a round and is now worth $550 million, at least in its investors' fantasies, which sets a high bar for RockYou. Slide is the biggest reason why RockYou might actually get the financing. After it struck its deal, cofounders Jia Shen and Lance Tokuda could argue for a comparable value. But not all is rosy for Shen and Tokuda.

Mark Zuckerberg's strategy of holding out for a Facebook valuation as high as $15 billion is contagious. Developers of the most popular Facebook applications have become mini-Zucks, unwilling to part with their astronomically self-valued creations. If Lance Tokuda, the chief executive of RockYou, sees any difference, it's only one of scale. Speaking about his companies popular Super Wall application, Tokuda, says "If you told me you were going to write me a check for $10 million, I'd say, 'Forget it.'" Why?