Early 2003,
Adam
D'Angelo, then a
Caltech student who had
been
Mark Zuckerberg's best friend in high school, had
developed the experimental, rudimentary social networking website
Buddy
Zoo, that was used by hundreds of thousands of people before D'Angelo
shut it down. That summer, Zuckerberg and friends who were also computer
science students worked coding for the summer in Boston and discussed the
implication of D'Angelo's website's success with regard to the future of social
networking on the Internet.In the fall, Zuckerberg, returning for his
sophomore year at
Harvard, wrote
CourseMatch, a
briefly popular site that helped Harvard students figure out what courses their
friends were taking;and then, on October 28, 2003, he wrote
Facemash, a
site that, according to the
Harvard Crimson, represented a Harvard
University version of
Hot or Not.
That night, Zuckerberg made the following blog entries:
Brain behind facebook
I'm a little intoxicated, not gonna lie. So what if it's not
even 10 pm and it's a Tuesday night? What? The Kirkland [dorm] facebook is
open on my desktop and some of these people have pretty horrendous facebook
pics. I almost want to put some of these faces next to pictures of farm animals
and have people vote on which is more attractive.
—9:48 pm
Yea, it's on. I'm not exactly sure how the farm animals are
going to fit into this whole thing (you can't really ever be sure with farm
animals...), but I like the idea of comparing two people together.
—11:09 pm
Let the hacking begin.
—12:58 am
According to
The Harvard Crimson, Facemash "used
photos compiled from the online facebooks of nine Houses, placing two next to
each other at a time and asking users to choose the 'hotter' person". To
accomplish this, Zuckerberg hacked into the protected areas of Harvard's
computer network and copied the houses' private dormitory ID images.
Harvard at that time did not have a student directory with
photos, and basic information and the initial site generated 450 visitors and
22,000 photo-views in its first four hours online. That the initial site
mirrored people’s physical community—with their real identities—represented the
key aspects of what later became Facebook.
"Perhaps Harvard will squelch it for legal reasons
without realizing its value as a venture that could possibly be expanded to
other schools (maybe even ones with good-looking people...)," Zuckerberg
wrote in his personal blog. "But one thing is certain, and it’s that I’m a
jerk for making this site. Oh well. Someone had to do it eventually..."The
site was quickly forwarded to several campus group list-servers but was shut
down a few days later by the Harvard administration. Zuckerberg was charged by
the administration with breach of security, violating copyrights, and violating
individual privacy, and faced expulsion, but ultimately the charges were
dropped.
Zuckerberg expanded on this initial project that semester by
creating a social study tool ahead of an art history final by uploading
500
Augustan images to a website, with one image
per page along with a comment section.He opened the site up to his classmates
and people started sharing their notes. "The professor said it had the
best grades of any final he’d ever given. This was my first social hack. With
Facebook, I wanted to make something that would make Harvard more open,"
Zuckerberg said in a TechCrunch interview.
On Oct 25, 2010, entrepreneur and banker Rahul Jain
auctioned off FaceMash.com to an unknown buyer for $30,201.
thefacebook
The homepage of Thefacebook on February 12, 2004
In January 2004, the following semester, Zuckerberg began
writing code for a new website. He was inspired, he said, by an editorial
in
The Harvard Crimsonabout the Facemash incident. "It is
clear that the technology needed to create a centralized Website is readily
available," the paper observed. "The benefits are many." On
February 4, 2004, Zuckerberg launched "Thefacebook", originally
located at thefacebook.com. "Everyone’s been talking a lot about a
universal face book within Harvard," Zuckerberg told The Harvard Crimson.
"I think it’s kind of silly that it would take the University a couple of
years to get around to it. I can do it better than they can, and I can do it in
a week." "When Mark finished the site, he told a couple of friends.
And then one of them suggested putting it on the Kirkland House online mailing
list, which was...three hundred people," according to roommate
Dustin
Moskovitz. "And, once they did that, several dozen people joined, and
then they were telling people at the other houses. By the end of the night, we
were...actively watching the registration process. Within twenty-four hours, we
had somewhere between twelve hundred and fifteen hundred registrants."
Just six days after the site launched, three Harvard
seniors,
Cameron Winklevoss,
Tyler
Winklevoss, and
Divya Narendra, accused Zuckerberg of intentionally
misleading them into believing he would help them build a social network called
HarvardConnection.com, while he was instead using their ideas to build a
competing product.
The three complained to the Harvard Crimson and
the newspaper began an investigation. Zuckerberg used his site,
TheFacebook.com, to look up members of the site who identified themselves as
members of the Crimson. Then he examined a log of failed logins to see if any
of the Crimson members had ever entered an incorrect password into
TheFacebook.com. In the cases in which they had entered failed logins, Mark
tried to use them to access the Crimson members' Harvard email accounts. He
successfully accessed two of them.The three later filed a lawsuit against
Zuckerberg, later settling.
Membership was initially restricted to students of
Harvard
College, and within the first month, more than half the undergraduate
population at Harvard was registered on the service.
Eduardo
Saverin(business aspects),
Dustin
Moskovitz (programmer),
Andrew
McCollum (graphic artist), and
Chris
Hughes soon joined Zuckerberg to help promote the website. In March
2004, Facebook expanded to
Stanford,
Columbia, and
Yale.This
expansion continued when it opened to all
Ivy League and
Boston area schools, and gradually most universities in Canada and the United
States.Facebook incorporated in the summer of 2004 and the entrepreneur
Sean Parker,
who had been informally advising Zuckerberg, became the company's
president In June 2004, Facebook moved its base of operations to
Palo Alto, California. The company
dropped
The from its name after purchasing the
domain name facebook.com
in 2005 for $200,000.
Face Book
On October 1, 2005, Facebook expanded to twenty-one universities in the United
Kingdom, the entire
Instituto Tecnologico y de Estudios Superiores de Monterrey (ITESM)
system in Mexico, the entire University of Puerto Rico network in Puerto Rico,
and the whole University of the Virgin Islands network in the U.S. Virgin
Islands. Facebook launched a high school version in September 2005, which
Zuckerberg called the next logical step. At that time, high school
networks required an invitation to join. Facebook later expanded
membership eligibility to employees of several companies, including
Apple Inc. and
Microsoft. On
December 11, 2005, universities in Australia and New Zealand were added to the
Facebook network, bringing its size to 2,000+ colleges and 25,000 + high
schools throughout the United States, Canada, Mexico, the United Kingdom,
Australia, New Zealand, and Ireland. Facebook was then opened on September 26,
2006, to everyone of ages 13 and older with a valid
e-mail
address. In October 2008, Facebook announced that it was to set up its
international headquarters in
Dublin, Ireland.
Total active users
|
Date
|
Users
(in millions)
|
Days later
|
Monthly growth
|
August 26, 2008
|
100
|
1,665
|
178.38%
|
April 8, 2009
|
200
|
225
|
13.33%
|
September 15, 2009
|
300
|
160
|
9.38%
|
February 5, 2010
|
400
|
143
|
6.99%
|
July 21, 2010
|
500
|
166
|
4.52%
|
January 5, 2011
|
600
|
168
|
3.57%
|
May 30, 2011
|
700
|
145
|
3.45%
|
September 22, 2011
|
800
|
115
|
3.73%
|
As of July 2010, Facebook.com was the top social network
across eight individual markets in the Southeast Asia/Oceania region
(Philippines, Australia, Indonesia, Malaysia, Singapore, New Zealand, Hong Kong
and Vietnam), while other brands commanded the top positions in certain
markets, including Google-owned Orkut in India and Brazil, Mixi.jp in Japan,
RenRen in China (where Facebook is
currently inaccessible), CyWorld in South
Korea and Yahoo!’s Wretch.cc in Taiwan.
[citation needed]Additionally,
Facebook has become the largest online photo host, being cited by Facebook
application and online photo aggregator
Pixable as
expecting to have 100 billion photos by summer 2011
In 2010 Facebook began to pro-actively involve its users in
running the website by inviting them to become beta testers after passing a
question-and-answer-based selection process, and also by creating a new
section known as Facebook Engineering Puzzles where users would solve
computational problems and then potentially be hired by Facebook.
it
Financials
With the sale of social networking website MySpace to
News
Corp on July 19, 2005, rumors surfaced about the possible sale of
Facebook to a larger media company. Zuckerberg had already said he did not
want to sell the company, and denied rumors to the contrary. On March 28,
2006,
BusinessWeekreported that a potential acquisition of
Facebook was under negotiation. Facebook reportedly declined an offer of
$750 million from an unknown bidder, and it was rumored the asking price
rose as high as $2 billion.
In September 2006, serious talks between Facebook and
Yahoo! took
place concerning acquisition of Facebook, with prices reaching as high as
$1 billion.Thiel, by then a board member of Facebook, indicated that
Facebook's internal valuation was around $8 billion based on their
projected revenues of $1 billion by 2015, comparable to Viacom's MTV
brand, a company with a shared target demographic audience.
On July 17, 2007, Zuckerberg said that selling Facebook was
unlikely because he wanted to keep it independent, saying "We're not
really looking to sell the company... We're not looking to
IPO anytime soon. It's just not the
core focus of the company." In September 2007, Microsoft approached
Facebook, proposing an investment in return for a 5% stake in the company,
offering an estimated $300–500 million. That month, other companies,
including
Google,
expressed interest in buying a portion of Facebook.
On October 24, 2007, Microsoft announced that it had
purchased a 1.6% share of Facebook for $240 million, giving Facebook a
total implied value of around $15 billion. However, Microsoft bought
preferred
stock that carried special rights, such as "liquidation
preferences" that meant Microsoft would get paid before common
stockholders if the company is sold. Microsoft's purchase also included rights
to place international ads on Facebook. In November 2007, Hong Kong
billionaire
Li Ka-shing invested $60 million in Facebook.
In August 2008, BusinessWeek reported that
private sales by employees, as well as purchases by venture capital firms, had
and were being done at share prices that put the company's total valuation at
between $3.75 billion and $5 billion. In October 2008, Zuckerberg
said "I don't think social networks can be monetized in the same way that
search did... In three years from now we have to figure out what the optimum
model is. But that is not our primary focus today."
In August 2009, Facebook acquired
social
media real-time
news
aggregator FriendFeed,a startup created by the former
Google employee
and
Gmail's
first engineer
Paul Buchheit who, while at Google, coined the
phrase "
Don't be evil". In September 2009, Facebook
claimed that it had turned cash flow positive for the first time.In February
2010, Facebook acquired Malaysian contact-importing startup Octazen
Solutions.On April 2, 2010, Facebook announced acquisition of photo-sharing
service called Divvyshot for an undisclosed amount.In June 2010, an
online marketplace for trading private
company stock reflected a valuation of $11.5 billion.
At the All Things Digital conference in June 2010,
Zuckerberg was asked if he expected to remain CEO if the company went public.
Zuckerberg said he did, adding that he doesn't "think about going public
... much." He said he did not have a date in mind for a potential IPO.