Your team doesn’t seem to understand that being “good negotiators” vs implying that you will destroy someone’s business built on your “open platform” are not the same thing.
He then goes on to call out the root-cause of the problem as FB's understandable but unfortunate focus on ad-revenue. This puts them at odds with the developers who use the platform and that's clearly not a good dynamic. Both MS and Apple have long understood that getting developers and keeping them happy was essential to keep a platform fertile.
EDIT:fixing typo/poor construction in last sentence.
Microsoft refined the practice to the point they coined a new term for it:
http://en.wikipedia.org/wiki/Embrace,_extend_and_extinguish
As a recent example from Apple, they are now requiring sandboxing in the App store, which is heavily messing with a number of developers. But they are not sandboxing their own applications.
EDIT: this comment appears to be unpopular? what's the disagreement?
EDIT: Also, I should point out that apple didn't used to mess with developers, probably because they were primarily a hardware company, with low market share, so developers were key, and there was no competition. However, they have expanded and are now also a services company, so they have an incentive to mess with the environment in order to defend their services against competition. Microsoft, conversely, made quite a bit of money off of it's office products, so always had a reason to manipulate the environment.
Time, both in the meeting and in preparing, and in information transfer. He didn't specifically say what he went through, but he may have divulged pieces of the puzzle that they were unaware of.
In retrospect, our contact with the other side that had set up the meeting hadn't properly communicated to us what the meeting would be about, and presumably had not communicated much with his side about what they were looking for at this stage.
Their side was basically dysfunctional, with each person on their team having a different agenda.
I wouldn't say that meeting was mal-intentioned, just that their company was really screwed up.
Facebook may be in a similar stage at certain levels.
a) Facebook will knock on his door again at a later date asking to "acqu-hire".
b) Facebook will eventually release something in-house that will compete with his app (and most likely win due to Facebook's large momentum).
With the impending doom stuff aside, I still don't think that he should've expected getting exec-level support for his product walking in to the meeting. Facebook doesn't _need_ to give him anything. So yeah, he wasted his time, but that's _his_ problem, not Facebook's.
I don't understand why this is a big issue. What was the cost to him in going to this meeting? It would hardly have changed the outcome (outcome: he declines their offer and they build a service which clobbers his.)