1.
Embrace: (what they are doing now) launch a competing but compatible service with that of Mastodon. The vast majority of users, most of whom don't care about the privacy and intimacy of the Mastodon network, will go with the brand with the most name recognition. The number of users already signed up for Threads shows this to be true.
2.
Extend: make their service appear to be better with features like search, which they have the resources to do, but the rest of the Mastodon network does not. Also include features for tracking and advertising, sell this as a good thing, "a better place to grow your personal brand, your business."
3.
Extinguish: after attracting a critical mass of users large enough to decimate the user base of the competing Mastodon network, and temporarily making appear to have better features like search, quietly remove compatibility with the Mastodon network. This will effect only 10% of Mastodon users because the other 90% will be on Threads. Then people will think, "who cares if we lose contact with that tiny minority of old Mastodon users, they should have just joined Threads by now anyways, they still can. It has search, and more people voted for it with their patronage it, and you don't have to think about what instance to join, its easier!" At this point, people begin to wonder what the point of Mastodon even is.
4.
#Enshittification: without any real competition to keep people from leaving for an alternative, start exploiting users for more and more content for ad revenue, exploit advertisers with ever-increasing costs of ad revenue.
They are scared to death about losing control over the Internet that they had gained over the past 15 years or so, and they are fighting to take that control back for themselves. We built this, but now a corporation like Meta/Facebook feels they have the right to exploit it for all its riches until it is destroyed.
Don't let it happen. #Fediblock is the only way to protect our home-grown community from corporate take-over.
(EDIT: spelling, grammar, minor clarifications)
@ramin_hal9001 Sometimes Extinguish goes on for a while. Companies don't always immediate close a connection (like Google Voice did with SIP/XMPP and a thousand other things)... sometimes it gets slowly more broken over time, like Microsoft did with trying to extinguish the entire Web, and nearly succeeding, by destroying all competing browser companies, Mozilla the last of them, and then doing less and less on the last remaining browser implementation, that they own.