On FACEBOOK - The Road Less Travelled Made All The Difference!

Early Days of Facebook, Inc

In the autumn of 2005, a 21 year-old Mark Zuckerberg, the founder of Facebook, sat across from Michael Wolf, President of Viacom's MTV Networks in a plush Gulfstream V private jet and refused a $1.5 billion buyout offer saying, "You just saw my apartment, I don't really need any money. And anyway, I don't think I'm ever going to have an idea this good again". He did manage however to learn as much as he could from Wolf on how Viacom makes money from MTV over the course of the 5 hour flight from San Francisco to New York. This and an insightful history of the ubiquitous phenomenon that is ruling cyberspace is provided by David Kirkpatrick in his upcoming novel, "The Facebook Effect: The Inside Story of the Company that is Connecting the World”. In those heady days, there were quite a few people who advised the young chap to sell his creation and finish school, rich beyond his wildest dreams but this stubborn creature went against all conventional wisdom and still lacking adequate funds bootstrapped this venture all the way to the Dot.com Hall of Fame. He and his team managed to have fun running the company in its formative years; a bunch of tweens working through booze fueled parties and friendly camaraderie. However much the company and its founder have both matured, it still maintains a relatively easygoing working atmosphere in Palo Alto, California.

Zuckerberg launched Facebook from his Harvard dorm room with a bunch of his friends and associates in 2004 under, as some would claim 'controversial circumstances', but the viability and overwhelming success of his invention soon brought all manner of suitors clipping at his heels. Facebook was exponential in its growth, even from the early onset. Within 4 months of the sites launch, he was perched on the brighter side of a potential $10 million dollar handshake and he refused without even taking the offer seriously. He and his team of friends and associates have turned Facebook into such a global web juggernaut over the past 6 years that Steve Ballmer, the CEO of Microsoft was willing to pay $15 billion for Facebook outright, but after serious haggling succeeded in only purchasing 1.6% at $240 million, essentially giving Facebook an implied book value of $15 billion. From $10 million through an astronomical figure of $15 billion, Zuckerberg has been steadfastly stubborn in his refusal to completely sellout and Facebook now has almost 500 million users and is worth an estimated $24 billion and counting; its heavily anticipated IPO is bound to instigate the greatest investor frenzy since Google. As Fortune would put it, Zuckerberg has succeeded in creating "the worlds most-coveted web giant." His personal net worth is estimated at about  $5 billion (representing 24% of Facebook, Inc) and he still wears frazzled hoodies, baggy pants and open-toed adidas flip-flops. That lucky f^&%*$!!!!!!

Personally I have been on Facebook since September 2004 and was probably among the first 200,000 to sign up. It was then thefacebook.com, a static page with no chat, apps, games and even no privacy; everything was open so long as you were in the network. At the time Facebook was essentially the privilege of American college kids until it was opened up to high schools then the rest of the world to such an unprecedented and overwhelming response. I have observed with rapt attention as this toddler technology that was very much experimental has grown into a full fledged and mature product that has become indispensable to many millions, inspiring a cornucopia of applications and an easy way to connect, reconnect and stay in touch. There was even a period of about 2 years when I practically ignored Facebook as its exclusivity paved way for universal access above the age of 13 but even amidst such changes the social network still wound its way back onto my fingertips because it has given rise to several brilliant new ways to communicate and a platform for rabble rousers such as myself to State Our Plays. Now FB is omnipresent on WEB 2.0; thumbs up Recommend signs are everywhere and all manner of websites are vying for recognition on the social network and its colossal and constantly growing user base. Facebook will generate $500 million in advertising revenue this year and this figure is projected to be in the billions a few years hence.

WOW! From chugging mountain dew coding other people’s websites deep into the night, Mr. Zuckerberg has come a long way. The question I have is what would this story have sounded like if he took the first $10 million dollars and didn't take the risk of holding out to the very end? He would certainly be wearing his hoodies, and baggy pants today but I doubt he would have had the ability to change the world as he did. He took the road less travelled, and it has made all the difference.

For an excerpt from David Kirkpatrick's, "The Facebook Effect" please visit this link http://money.cnn.com/2010/05/06/technology/facebook_excerpt.fortune/index.htm