When Facebook loses, who wins? That’s a question for startups that may be worth contemplating following Facebook’s recent stock price haircut. The company’s valuation has fallen by around $60 billion since the Cambridge Analytica scandal surfaced earlier this month and the #DeleteFacebook campaign gained momentum. That’s a steep drop, equal to about 12 percent of the company’s market valuation, and it’s a decline Facebook appears to be suffering alone. As its shares fell over the past couple of weeks, stocks of other large-cap tech and online media companies have been much flatter. So where did the money go? It’s probably a matter of perspective. For a Facebook shareholder, that valuation is simply gone. And until executives’ apologies resonate and users’ desire to click and scroll overcomes their privacy fears, that’s how it is. An alternate view is that the valuation didn’t exactly disappear. Investors may still believe the broad social media space is just as valuable as it was a couple of weeks ago. It’s just that less of that pie should be the exclusive domain of Facebook. If one takes that second notion, then the possibilities for who could benefit from Facebook’s travails start to get interesting. Of course, there are public market companies, like Snap or Twitter, that might pick up traffic if the #DeleteFacebook movement gains momentum without spreading to other big brands. But it’s in the private markets where we see the highest number of potential beneficiaries of Facebook’s problems. In an effort to come up with some names, we searched through Crunchbase for companies in social media and related areas. The resulting list includes companies that have raised good-sized rounds in the past couple of years and could conceivably see gains if people cut back on using Facebook or owning its stock. Of course, people use Facebook for different things (posting photos, getting news, chatting with friends and so on), so we lay out a few categories of potential beneficiaries of a Facebook backlash. Messaging Facebook has a significant messaging presence, but it hasn’t been declared the winner. Alternatives like Snap, LINE, WeChat and plain old text messages are also massively popular. That said, what’s bad for Messenger and Facebook-owned WhatsApp is probably good for competitors. And if more people want to do less of their messaging on Facebook, it helps that there are a number of private companies ready to take its place. Crunchbase identified six well-funded…

Source: TechCrunch – Social Who gains from Facebook’s missteps?