The memo sent to several team members stated their need to make the best decision that would yield the best results.

This is Andrew "Boz" Bosworth's strategy memo on how FB should approach ads. Boz is a personal friend of Sriram and ex-colleague and this memo, sent in December 2012, showcases Bosworth's strategy skills.

Senior ad buyers said they believed FBX would "quadruple" the market — which would mean that $8 billion in media spending was up for grabs. Facebook ad sales boss Carolyn Everson said she expected FBX to "unlock a significant amount of spending around the globe." But FBX was barely able to get to $1B by 2015.

In June 2012, Facebook launched FBX, an ad exchange that allowed advertisers to buy retargeted desktop ads using third-party tools like Criteo and AppNexus. The idea was to revolutionize online marketing and a chance to compete with google , which earns $10 billion from the Americas alone.

And a Few threats:Consolidation - This will reduce data advantage and create network effects which will reduce their ability to compete

Friction - People getting comfortable working with DSPs making harder to move budgets later on.

This memo lists a few advantages:-Inventory advantage-Data advantage-Platform advantage

But in 2013, after a key meeting of Facebook's top ad tech execs with COO Sheryl Sandberg, a decision was taken that would severely limit FBX's future.

Disintermediation - If they felt that if they werent shaping the marketplace then others will do it.