FACEBOOK

ENTREPRENEUR MARK ZUCKERBERG

CEO & President Facebook |

15/10/2011

A Projec on Entrepreneur Mark Zuckerberg

Small and Medium Enterprise
Jointly Presente By : Athar Mazar : 05 Tauha Kazi : 16 Wahid Shaikh :37

Mark Elliot Zuckerberg (born May 14, 1984) is an American computer
scientist, software developer and philanthropist best known for creating the social networking site Facebook, of which he is CEO and president. It was co-founded as a private company in 2004 by Zuckerberg and classmates Dustin Moskovitz, Eduardo Saverin, and Chris Hughes while they were students at Harvard University. In 2010, Zuckerberg was named Time magazine's Person of the Year. Zuckerberg was born in White Plains, New York to Karen, a psychiatrist, and Edward, a dentist. Mark and three sisters, Randi, Zuckerberg at South by Southwest in 2008. Donna, and Arielle, were brought up in Dobbs Ferry, New York. Zuckerberg Born Mark Elliot Zuckerberg was raised Jewish, including having May 14, 1984 (age 26) his bar mitzvah when he turned 13, White Plains, New York although he has since described himself as an atheist.
Residence Palo Alto, California American Harvard College (dropped out in 2004) CEO/President of Facebook (24% shareholder in 2010) Years active 2004±present

At Ardsley High School he had excelled in the classics before in his junior year transferring to Phillips Exeter Academy, where Zuckerberg won prizes in science (math, astronomy and physics) and Classical studies (on his college application, Zuckerberg listed as non-English languages he could read and write: French, Hebrew, Latin, and ancient Greek) and was captain of the fencing team. In college, he was known for reciting lines from epic poems such as The Iliad.
Nationality Alma mater Occupation

Known for

Co-founding Facebook; becoming world's youngest billionaire.

Home town Net worth

Dobbs Ferry, New York US$6.9 billion (2010) Randi Zuckerberg (sister) Time Person of the Year 2010

Early years
Zuckerberg began using

Relatives Awards

computers and writing software as a child in middle school. His father taught him Atari BASIC Programming in the 1990s, and later hired software developer David Newman to tutor him privately. Newman calls him a "prodigy,"

addi t at it as "t t stay ahead of hi " Zuckerberg also took a graduate course i the subject at Mercy College near his home while he was still in high school He enjoyed developing computer programs, especially communication tools and games. In one such program, since his father's dental practice was operated from their home, he built a software program he called "ZuckNet," which allowed all the computers between the house and dental office to communicate by pinging each other. It is considered a "primitive" version of AOL's Instant Messenger, which came out the following year. According to writer Jose Antonio Vargas, "some kids played computer games. Mark created them. Zuckerberg himself recalls this period: "I had a bunch of friends who were artists. They'd come over, draw stuff, and I'd build a game out of it." However, notes Vargas, Zuckerberg was not a typical "geek-klut ," as he later became captain of his high school fencing team and earned his diploma in classical literature. Napster founder Sean Parker, a close friend, notes that Zuckerberg was "really into Greek odysseys and all that stuff,´ recalling how he once quoted lines from the Latin epic poem Aeneid, by Virgil, during a Facebook product conference. During Zuckerberg's high school years, under the company name Intelligent Media Group, he built a music player called the Synapse Media Player that used artificial intelligence to learn the user's listening habits, which was posted to Slashdot and received a rating of 3 out of 5 from PC Magazin . Microsoft and AOL tried to purchase Synapse and recruit Zuckerberg, but he chose instead to enrol at Harvard College in September 2002. By the time he began classes at Harvard, he had already achieved a "reputation as a programming prodigy," notes Vargas. He studied psychology and computer science and belonged to Alpha Epsilon Pi, a Jewish fraternity. In his sophomore year, he wrote a program he called Course match, which allowed users to make class selection decisions based on the choices of other students and also to help them form study groups. A short time later, he created a different program he initially called Facemash that let students select the best looking person from a choice of photos. According to Zuckerberg's roommate at the time, Arie Hasit, "he built the site for fun." Hasit explains: We had books called Face Books, which included the names and pictures of everyone who lived in the student dorms. At first, he built a site and placed two pictures, or pictures of two males and two females. Visitors to the site had to choose who was "hotter" and according to the votes there would be a ranking.
 

The site went up over the weekend, but by Monday morning the college shut it down because its popularity had overwhelmed Harvard's server and prevented students from accessing the web. In addition, many students complained that their photos were being used without permission. Zuckerberg apologi ed publicly, and the student paper ran articles stating that his site was "completely improper." At the time of Zuckerberg's "fun" site, however, students had already been requesting that the university develop a web site that would include similar photos and contact details to be part of the college's computer network. According to Hasit, "Mark heard these pleas and decided that if the university won't do something about it, he will, and he would build a site that would be even better than what the university had planned."

Phil n hropy
Zuckerberg donated an undisclosed amount to Diaspora, an open-source personal web server that implements a distributed social networking service. He called it a "cool idea." Zuckerberg founded the Start-up: Education foundation. On September 22, 2010, it was reported that Zuckerberg had arranged to donate $100 million to Newark Public Schools, the public school system of Newark, New Jersey. Critics noted the timing of the donation as being close to the release of The Social Network, which painted a somewhat negative portrait of Zuckerberg. Zuckerberg responded to the criticism, saying, "The thing that I was most sensitive about with the movie timing was, I didn¶t want the press about 'The Social Network' movie to get conflated with the Newark project. I was thinking about doing this anonymously just so that the two things could be kept separate." Newark Mayor Cory A. Booker stated that he and New Jersey Governor Chris Christie had to convince Zuckerberg's team not to make the donation anonymously. On December 8, 2010, Zuckerberg released a statement that he had become a signatory of The Giving Pledge.

F ook Foundin nd oal
Zuckerberg launched Facebook from his Harvard dormitory room on February 4, 2004. An earlier inspiration for Facebook may have come from Phillips Exeter Academy, the private high school from which Zuckerberg graduated in 2002. It published its own student directory, "The Photo Address Book" (once known as the "E Book" , but which students referred to as "The Facebook." Such photo directories were an important part of the student social experience at many private schools. With them, students were able to list attributes such as their class years, their proximities to friends, and their telephone numbers.

Once at college, Zuckerberg's Facebook started off as just a "Harvard thing" until Zuckerberg decided to spread it to other schools, enlisting the help of roommate Dustin Moskovit . They first started it at Stanford, Dartmouth, Columbia, New York University, Cornell, Brown, and Yale, and then at other schools that had social contacts with Harvard. Zuckerberg moved to Palo Alto, California, with Moskovit and some friends. They leased a small house that served as an office. Over the summer, Zuckerberg met Peter Thiel who invested in the company. They got their first office in mid-2004. According to Zuckerberg, the group planned to return to Harvard but eventually decided to remain in California. They had already turned down offers by major corporations to buy out Facebook. In an interview in 2007, Zuckerberg explained his reasoning: It's not because of the amount of money. For me and my colleagues, the most important thing is that we create an open information flow for people. Having media corporations owned by conglomerates is just not an attractive idea to me. He restated these same goals to Wired magazine in 2010: "The thing I really care about is the mission, making the world open." Earlier, in April 2009, Zuckerberg sought the advice of former Netscape CFO Peter Currie about financing strategies for Facebook. On July 21, 2010, Zuckerberg reported that the company reached the 500 million-user mark. When asked whether Facebook could earn more income from advertising as a result of its phenomenal growth, he explained: I guess we could ... If you look at how much of our page is taken up with ads compared to the average search query. The average for us is a little less than 10 percent of the pages and the average for search is about 20 percent taken up with ads ... That¶s the simplest thing we could do. But we aren¶t like that. We make enough money. Right, I mean, we are keeping things running; we are growing at the rate we want to.

Hi ory of Facebook Facemash
In 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.

Thefacebook
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 Crimson about 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.

Facebook
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. 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. Facebook has been highly used in the years 2009-2011. It has crossed the visits of Google in some continents. Recently Facebook.com was the top social

network across eight of 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, Mixi.jp in Japan, RenRen in China, CyWorld in South Korea and Yahoo!¶s Wretch.cc in Taiwan. In 2010 Facebook began to pro-actively involve its users in the running of the website, by inviting users to become beta testers after passing a question and answer based selection process, and also by creating a new section know as Facebook Engineering Puzzles where users would solve computational problems and then potentially be hired by Facebook.

Total active users (in millions) Date ² February 5, 2010 July 21, 2010 August 26, 2008 April 8, 2009 September 15, 2009 Users Days later 600 400 500 100 200 300 onthly rowth

175 (on oin ) ² 143 166 1,665 225 150 6.99% 4.52% 178.38% 13.33% 10%

Financials
Facebook received its first investment of US$500,000 in June 2004 from PayPal cofounder Peter Thiel, in exchange for 7% of the company. This was followed a year later by $12.7 million in venture capital from Accel Partners, and then $27.5 million more from Greylock Partners. A leaked cash flow statement showed that during the 2005 fiscal year, Facebook had a net loss of $3.63 million.[35] With the sale of social networking website MySpace to News Corp on July 19, 2005, rumours 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 rumours to the contrary. On March 28, 2006, BusinessWeek reported that a potential acquisition of Facebook was under negotiation. Facebook reportedly declined an offer of $750 million from an unknown bidder, and it was rumoured 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 be fore 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, Busi essWeek 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 Friend Feed, a start-up 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 start-up 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.

Third-party responses to Facebook Government censorship
Because of the open nature of Facebook, several countries have banned access to it including Syria, China, Iran, and Vietnam.

Organizations blocking access
Ontario government employees, Federal public servants, MPPs, and cabinet ministers were blocked from access to Facebook on government computers in May 2007. When the employees tried to access Facebook, a warning message "The Internet website that you have requested has been deemed unacceptable for use for government business purposes". This warning also appears when employees try to access YouTube, MySpace, gambling or pornographic websites. However, innovative employees have found ways around such protocols, and many claim to use the site for political or work-related purposes. A number of local governments including those in the UK and Finland imposed restrictions on the use of Facebook in the workplace due to the technical strain incurred. Other government-related agencies, such as the US Marine Corps have imposed similar restrictions. A number of hospitals in Finland have also restricted Facebook use citing privacy concerns.

Schools blocking access
The University of New Mexico (UNM) in October 2005 blocked access to Facebook from UNM campus computers and networks, citing unsolicited e-mails and a similar site called UNM Facebook. After a UNM user signed into Facebook from off campus, a message from Facebook said, "We are working with the UNM administration to lift the block and have explained that it was instituted based on erroneous information, but they have not yet committed to restore your access." UNM, in a message to students who tried to access the site from the UNM network, wrote, "This site is temporarily unavailable while UNM and the site owners work out procedural issues. The site is in violation of UNM's Acceptable Computer Use

Policy for abusing computing resources (e.g., spamming, trademark infringement, etc). The site forces use of UNM credentials (e.g., NetID or email address) for non-UNM business." However, after Facebook created an encrypted login and displayed a precautionary message not to use university passwords for access, UNM unblocked access the following spring semester. The Columbus Dispatch reported on June 22, 2006, that Kent State University's athletic director had planned to ban the use of Facebook by athletes and gave them until August 1 to delete their accounts. On July 5, 2006, the Daily Kent Stater reported that the director reversed the decision after reviewing the privacy settings of Facebook.

Closed social networks
Several web sites concerned with social networking have criticized the lack of information that users get when they share data. Advanced users can limit the amount of information anyone can access in their profiles, but Facebook promotes the sharing of personal information for marketing purposes, leading to the promotion of the service using personal data from users who are not fully aware of this. Furthermore, Facebook exposes personal data, without supporting open standards for data interchange. According to several communities and authors closed social networking, on the other hand, promotes data retrieval from other people while not exposing one's personal information. Openbook was established in early 2010 both as a parody of Facebook and a critique of its changing privacy management protocols

Class action lawsuit
On November 17, 2009, Rebecca Swift, on behalf of herself and all others similarly situated, filed a class action lawsuit against Zynga Game Network Inc. and Facebook, Inc. in the United States District Court for the Northern District of California for violation of the Unfair competition law and the Consumers Legal Remedies Act, and for unjust enrichment.

Conclusion
Evolutionary biologists suggest there is a correlation between the size of the cerebral neocortex and the number of social relationships a primate species can have. Humans have the largest neocortex and the widest social circle ² about 150, according to the scientist Robin Dunbar. Dunbar's number ² 150 ² also happens to mirror the average number of friends people have on Facebook. Because of airplanes and telephones and now social media, human beings touch the lives of vastly more people than did our ancestors, who might have encountered only 150 people in their lifetime. Now the possibility of connection is accelerating at an extraordinary pace. As the great biologist E.O. Wilson says, "We're in uncharted territory." All social media involve a mixture of narcissism and voyeurism. Most of us display a combination of the two, which is why social media are flourishing faster and penetrating deeper than any other social development in memory. Social media play into the parts of human character that don't change, even while changing the nature of what once seemed immutable. At 26, Zuckerberg is a year older than the first Person of the Year, Charles Lindbergh ² another young man who used technology to bridge continents. He is the same age as Queen Elizabeth when she was Person of the Year, for 1952. But unlike the Queen, he did not inherit an empire; he created one. (The Queen, by the way, launched a Facebook page this year.) Person of the Year is not and never has been an honor. It is a recognition of the power of individuals to shape our world. For connecting more than half a billion people and mapping the social relations among them (something that has never been done before); for creating a new system of exchanging information that has become both indispensable and sometimes a little scary; and finally, for changing how we all live our lives in ways that are innovative and even optimistic, Mark Elliot Zuckerberg is TIME's 2010 Person of the Year.

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