Why You’re Not Seeing Your #Facebook Year In Review 2016 Video: How To Get It
In
January 2005 , 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.com.[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
connect 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.com,
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.com 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 theCrimson members
have ever entered an incorrect password into TheFacebook.com. In the
cases in which they had failed to log in, 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] U
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, andYale.[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 company's 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.com in 2005 for $200,000.[28]
Total active users[N 1]
February 4, 2004 | 0 | — | — |
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% |
December 31, 2014 | 1,390[41] | 365 | 0.64% |
On
October 1, 2005, Facebook expanded to twenty-one universities in the
United Kingdom and others around the world. Facebook launched a high
school version in September 2005, which Zuckerberg called the next
logical step.[42] At that time, high school networks required an invitation to join.[43] Facebook later expanded membership eligibility to employees of several companies, including Apple Inc. and Microsoft.[44] 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 aged 13 and older with a valid e-mail address.[6][7]
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 "We're 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".[51] The
lawsuit claims that Yahoo's 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.[52] In
2012, Facebook App Center, an online mobile store, was rolled out. The
store initially had 500 Facebook apps which were mostly games[53]
In his book The Facebook Effect, David Kirkpatrick outlines the story of how Thiel came to make his investment: FormerNapster 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 Facebook's
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.[59] Thiel said of his investment:
In August 2009, Facebook acquired social media real-time news aggregator FriendFeed,[80] a startup created by Gmail's first engineer Paul Buchheit.[81][82][83] In February 2010, Facebook acquired Malaysian contact-importing startup Octazen Solutions.[84] On April 2, 2010, Facebook announced acquisition of photo-sharing service called Divvyshot for an undisclosed amount.[85] In June 2010, an online marketplace for trading private Facebook stock reflected a valuation of $11.5 billion.[86] On April 12, 2012, Facebook acquired photo sharing service Instagram for approximately $1 billion in cash and stock.[87][88] On March 8, 2013, Facebook announced that they acquired the team from Storylane, but not the product itself.[89] On February 19, 2014 Facebook announced it is acquiring WhatsApp Inc.,
a smartphone instant messaging application for $19 billion in a mix of
stock and cash. The acquisition is the most ever paid for a
venture-capital backed startup.[90]
Underwriters valued the shares at $38 each, pricing the company at $104 billion, the largest valuation to date for a newly public company.[97] On
May 16, one day before the IPO, Facebook announced that it would sell
25% more shares than originally planned due to high demand.[98] The IPO raised $16 billion, making it the third largest in U.S. history (just ahead of AT&T Wireless and behind only General Motors and Visa Inc.).[99][100] The stock price left the company with a higher market capitalization than all but a few U.S. corporations – surpassing heavyweights such as Amazon.com, McDonald's, Disney, and Kraft Foods – and made Zuckerberg's stock worth $19 billion.[99][100] The New York Times stated
that the offering overcame questions about Facebook's difficulties in
attracting advertisers to transform the company into a "must-own
stock". Jimmy Lee of JPMorgan Chase described it as "the next great blue-chip".[99] Writers at TechCrunch,
on the other hand, expressed skepticism, stating, "That's a big
multiple to live up to, and [Facebook] will likely need to add bold new
revenue streams to justify the mammoth valuation".[101]
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