History of Facebook Facebook is a social networking service launched in February 2004, owned and operated by Facebook. It was founded by Mark Zuckerberg with his college roommates and fellow Harvard University students Eduardo Saverin, Andrew McCollum, Dustin Moskovitz and Chris Hughes.[1] The websites membership was initially limited by the founders to Harvard students, but was expanded to other colleges in the Boston area, the Ivy League,[2] and gradually most universities in Canada and the United States,[3][4] corporations,[5] and by September 2006, to everyone of age 13 and older with a valid email address.[6][7] Facebook (Sikndar) Mark Zuckerberg created Facebook in his Harvard dorm room. Facemash, the Facebook’s predecessor, opened on October 28, 2003.[8] Initially, the website was invented by a Harvard student, Mark Zuckerberg, and three of his classmates – Andrew McCollum, Chris Hughes and Dustin Moskovitz. Zuckerberg wrote the software for the Facemash website when he was in his second year of college. The website was set up as a type of “hot or not” game for Harvard students. The website allowed visitors to compare two student pictures side-by-side and let them choose who was “hot” and who was “not”. That night, Zuckerberg wrote the following blog entries:[9][10][11] Im a little intoxicated, not gonna lie. So what if its not even 3 pm and its a Tuesday afternoon? What? The Kirkland dormitory facebook is open on my desktop and some of these people have pretty horrendiedous facebook pics. I almost want to put some of these faces next to pictures of some farm animals and have people vote on which is more attractive. —2:49 pm Yea, its on. Im not exactly sure how the farm animals are going to fit into this whole thing (you cant really ever be sure with farm animals...), but I like the idea of comparing two people together. —11:10 am Let the hacking begin. —2:57 pm By Colsen: I posted awhile back. Support Mark Zuckerberg! —11:00 pm By Colsen: Wait!...why am I up this late? —2:23 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, Mark Zuckerberg hacked the facebooks Harvard maintained to help students identify each other and used the images to populate his Facemash website. [12] That the initial site mirrored people’s physical community—with their real identities—represented the key aspects of what later became Facebook.[13] 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...[14] The site was quickly forwarded to several campus group list-servers. However, the website was shut down by Harvard executives a few days after it opened. Mark Zuckerberg faced charges of violating copyrights, breach of security, and violating individual privacy for stealing the student pictures that he used to populate the website. He later faced expulsion from Harvard University for his actions. However, all the charges were eventually dropped.[15] Zuckerberg expanded on this initial project that semester by creating a social study tool ahead of an art history final. He uploaded 500 Augustan images to a website, with one image per page along with a comment section.[13] 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 October 25, 2010, entrepreneur and banker Rahul Jain auctioned off FaceMash to an unknown buyer for $30,201.[16][17] thefacebook The homepage of Thefacebook on February 12, 2004 In January 2004, Mark Zuckerberg began writing the code for a new website, known as theFacebook. He said in an article in The Harvard Crimson that he was inspired to make Facebook from the incident of Facemash: It is clear that the technology needed to create a centralized Website is readily available ... the benefits are many.[9] On February 4, 2004, Zuckerberg launched Thefacebook, originally located at thefacebook.[18] He told The Crimson, Everyone’s been talking a lot about a universal face book within Harvard. I think it’s kind of silly that it would take the University a couple of years to get around to it as I can do it better than they can, and I can do it in a week.[19] Zuckerberg also stated his intention to create a universal website that can contact people around the university. According to his roommate, Dustin Moskovitz, When Mark finished the site, he told a couple of friends ... then one of them suggested putting it on the Kirkland House online mailing list, which was ... three hundred people. Moskovitz continued to say that, “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.[20] Just six days after the launch of the site, three Harvard University seniors, Cameron Winklevoss, Tyler Winklevoss, and Divya Narendra, accused Zuckerberg of intentionally misleading them into believing that he would help them build a social network called HarvardConnection, but instead using their idea to build a competing product.[21] The three complained to the Crimson, and the newspaper began an investigation. Zuckerberg knew about the investigation so he used TheFacebook to find members in the site who identified themselves as members of the Crimson. He examined a history of failed logins to see if any of the Crimson members have ever entered an incorrect password into TheFacebook. In the cases in which they had failed to login, Mark tried to use them to access the Crimson members Harvard email accounts, and he was successful in accessing two of them. In the end, three Crimson members filed a lawsuit against Zuckerberg which was later settled.[21][22] Membership was initially restricted to students of Harvard University. Within the first month, more than half the undergraduate population at Harvard was registered on the service.[23] Zuckerberg was soon joined in the promotion of the site by Eduardo Saverin (business aspects), Dustin Moskovitz (programmer), Andrew McCollum (graphic artist), and Chris Hughes. In March 2004, Facebook expanded to Stanford, Columbia, and Yale.[2] This expansion continued when it opened to all Ivy League and Boston-area schools. It gradually reached most universities in Canada and the United States.[24][25][26] Facebook was incorporated in the summer of 2004, and the entrepreneur Sean Parker, who had been informally advising Zuckerberg, became the companys president.[27] In June 2004, Facebook moved its base of operations to Palo Alto, California.[2] The company dropped ‘The’ from its name after purchasing the domain name facebook in 2005 for $200,000.[28] Facebook Total active users[N 1] Date Users (in millions) Days later Monthly growth[N 2] August 26, 2008 100[29] 1,665 178.38% April 8, 2009 200[30] 225 13.33% September 15, 2009 300[31] 160 9.38% February 5, 2010 400[32] 143 6.99% July 21, 2010 500[33] 166 4.52% January 5, 2011 600[34][N 3] 168 3.57% May 30, 2011 700[35] 145 3.45% September 22, 2011 800[36] 115 3.73% April 24, 2012 900[37] 215 1.74% September 14, 2012 1,000[38] 143 2.33% March 31, 2013 1,110[39] 198 1.5% December 31, 2013 1,230[40] 275 0.97% On October 1, 2005, Facebook expanded to twenty-one universities in the United Kingdom, the Instituto Tecnologico y de Estudios Superiores de Monterrey (ITESM) system in Mexico (around thirty campuses throughout the country at the time), the University of Puerto Rico and Interamerican University of Puerto Rico network in Puerto Rico, and the 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.[41] At that time, high school networks required an invitation to join.[42] Facebook later expanded membership eligibility to employees of several companies, including Apple Inc. and Microsoft.[43] 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 ages 13 and older with a valid e-mail address.[6][7] Late in 2007, Facebook had 100,000 business pages, allowing companies to attract potential customers and tell about themselves. These started as group pages, but a new concept called company pages was planned.[44] In October 2008, Facebook announced that it would set up its international headquarters in Dublin, Ireland.[45] In 2010, Facebook began to invite users to become beta testers after passing a question-and-answer-based selection process,[46] and a set of Facebook Engineering Puzzles where users would solve computational problems which gave them an opportunity to be hired by Facebook.[47] As of February 2011, Facebook had 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.[48] As of October 2011, over 350 million users accessed Facebook through their mobile phones, accounting for 33% of all Facebook traffic.[49] On March 12, 2012, Yahoo! filed suit in a U.S. federal court against Facebook weeks before the scheduled Facebook initial public offering. In its court filing, Yahoo said that Facebook had infringed on ten of its patents covering advertising, privacy controls and social networking. Yahoo had threatened to sue Facebook a month before the filing, insisting that the social network license its patents. A spokesperson for Facebook issued a statement saying Were disappointed that Yahoo, a longtime business partner of Facebook and a company that has substantially benefited from its association with Facebook, has decided to resort to litigation.[50] The lawsuit claims that Yahoos patents cover basic social networking ideas such as customizing website users experiences to their needs, adding that the patents cover ways of targeting ads to individual users.[51] Financials Entrance to Facebook headquarters complex in Menlo Park, California Facebooks former headquarters in downtown Palo Alto, California Initial funding Facebook was initially incorporated as a Florida LLC. For the first few months after its launch in February 2004, the costs for the website operations for thefacebook were paid for by Mark Zuckerberg and Eduardo Saverin, who had taken equity stakes in the company. The website also ran a few advertisements to meet its operating costs.[52] First angel investment (Series A) In the summer of 2004, Peter Thiel made a $500,000 angel investment in the social network Facebook for 10.2% of the company and joined Facebooks board. This was the first outside investment in Facebook.[53][54][55] In his book The Facebook Effect, David Kirkpatrick outlines the story of how Thiel came to make his investment: Former Napster and Plaxo employee Sean Parker, who at the time had assumed the title of President of Facebook, was seeking investors for Facebook. Parker approached Reid Hoffman, the CEO of work-based social network LinkedIn. Hoffman liked Facebook but declined to be the lead investor because of the potential for conflict of interest with his duties as LinkedIn CEO. He redirected Parker to Peter Thiel, whom he knew from their PayPal days (both Hoffman and Thiel are considered members of the PayPal Mafia). Thiel met Parker and Mark Zuckerberg, the Harvard college student who had founded Facebook and controlled it. Thiel and Zuckerberg got along well and Thiel agreed to lead Facebooks seed round with $500,000 for 10.2% of the company. Hoffman and Mark Pincus also participated in the round, along with Maurice Werdegar who led the investment on behalf of Western Technology Investment. The investment was originally in the form of a convertible note, to be converted to equity if Facebook reached 1.5 million users by the end of 2004. Although Facebook narrowly missed the target, Thiel allowed the loan to be converted to equity anyway.[56] Thiel said of his investment: I was comfortable with them pursuing their original vision. And it was a very reasonable valuation. I thought it was going to be a pretty safe investment.[56]
Posted on: Sun, 16 Feb 2014 20:10:30 +0000
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