Fo r o ne meeting with sequo ia capital the venerable

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Unformatted text preview: r Facebo o k,” Ro lling Sto ne, June 26, 2008, 9. And let’s no t f o rget that Facebo o k came o ut o f drunken experiments in his do rm ro o m, o ne o f which was a system f o r co mparing classmates to f arm animals (Zuckerberg, threatened with expulsio n, later apo lo gized). Fo r o ne meeting with Sequo ia Capital, the venerable Menlo P ark venture capital f irm that backed Go o gle and Yo uTube, Zuckerberg sho wed up in his pajamas.C. Ho f f man, “The Battle f o r Facebo o k,” Ro lling Sto ne, June 26, 2008. By the age o f twenty-three, Mark Zuckerberg had graced the co ver o f New sw eek, been pro f iled o n 60 Minutes, and was discussed in the tech wo rld with a reverence previo usly reserved o nly f o r Steve Jo bs and the Go o gle guys, Sergey Brin and Larry P age. But Mark Zuckerberg’s star ro se much f aster than any o f his predecesso rs. Just two weeks af ter Facebo o k launched, the f irm had f o ur tho usand users. Ten mo nths later it was up to o ne millio n. The gro wth co ntinued, and the business wo rld to o k no tice. In 2006, Viaco m (parent o f MTV) saw that its co re demo graphic was spending a to n o f time o n Facebo o k and o f f ered to buy the f irm f o r three quarters o f a billio n do llars. Zuckerberg passed.S. Ro senbush, “Facebo o k’s o n the Blo ck,” BusinessWeek, March 28, 2006. Yaho o ! o f f ered up a co o l billio n (twice). Zuck passed again, bo th times. As gro wth skyro cketed, Facebo o k built o n its strangleho ld o f the co llege market, o pening up f irst to high scho o lers, then to everyo ne. Web hipsters started selling shirts emblazo ned with “I Facebo o ked yo ur Mo m!” Even Micro so f t wanted so me o f Facebo o k’s magic. In 2006, the f irm tempo rarily lo cked up the right to bro ker all banner ad sales that run o n the U.S. versio n o f Facebo o k, guaranteeing Zuckerberg’s f irm $ 100 millio n a year thro ugh 2011. In 2007, Micro so f t came back, buying 1.6 percent o f the f irm f o r $ 240 millio n.While Micro so f t had cut deals to run banner ads wo rldwide, Facebo o k dro pped banner ads f o r po o r perf o rmance in early 2010; see C. McCarthy, “Mo re So cial, P lease: Facebo o k Nixes B...
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This document was uploaded on 01/31/2014.

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