Zuckerberg wrote Facemash, the predecessor to Facebook, on October 28, 2003, while attending Harvard as a sophomore. According to The Harvard Crimson, the site was comparable to Hot or Not, and "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, Zuckerberg hacked into the protected areas of Harvard's computer network and copied the houses' private dormitory ID images. Harvard at that time did not have a student "facebook" (a directory with photos and basic information). Facemash attracted 450 visitors and 22,000 photo-views in its first four hours online. The site was quickly forwarded to several campus group list-servers, but was shut down a few days later by the Harvard administration. Zuckerberg was charged by the administration with breach of security, violating copyrights, and violating individual privacy, and faced expulsion. Ultimately, however, the charges were dropped. Zuckerberg expanded on this initial project that semester by creating a social study tool ahead of an art history final, by uploading 500 Augustan images to a website, with one image per page along with a comment section. He opened the site up to his classmates, and people started sharing their notes. The following semester, Zuckerberg began writing code for a new website in January 2004. He was inspired, he said, by an editorial in The Harvard Crimson about the Facemash incident. On February 4, 2004, Zuckerberg launched "Thefacebook", originally located at thefacebook.com. 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. The three later filed a lawsuit against Zuckerberg, subsequently 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. It soon opened to the other Ivy

Indonesia. Facebook announced that it would set up its international headquarters in Dublin. 2008 April 8. giving Facebook a total implied value of around $15 billion. In September 2009. 2007. In June 2004. became the company's president. Malaysia. an exchange for shares of privately held companies.52% 3.Facebook has been identified as a possible candidate for an IPO by 2013. Facebook moved its base of operations to Palo Alto. MIT.Facebook also became the top social network across eight individual markets — in Australia. 2009 February 5. Facebook said that it had turned cash flow positive for the first time In November 2010. Singapore. California.38% 13. including Apple Inc. who had been informally advising Zuckerberg.League schools. In October 2008. Total active users Date Users Days later Monthly growth (in millions) August 26.99% 4. The company dropped The from its name after purchasing the domain name facebook. high-school networks required an invitation to join. 2011 100[28] 200 400 500 600 [29] 1. Facebook later expanded membership eligibility to employees of several companies. New York University. Microsoft announced that it had purchased a 1. It received its first investment later that month from PayPal co-founder Peter Thiel.33% 10% 6. Facebook's value was $41 billion (slightly surpassing eBay's) and it became the third largest US web company after Google and Amazon. and Microsoft.665 225 150 143 166 168 178. On October 24.6% share of Facebook for $240 million. Microsoft's purchase included rights to place international ads on Facebook. 2010 July 21.57% September 15. 2009 300[30] [31] [32] [33][N 3] Facebook launched a high-school version in September 2005. More people visited Facebook than Google for the week ending March 13. 2010 January 5.Boston University. 2006.com in 2005 for $200. the Philippines. and the entrepreneur Sean Parker. and gradually most universities in Canada and the United States. which Zuckerberg called the next logical step. Facebook was then opened on September 26.Traffic to Facebook increased steadily after 2009. Hong Kong and Vietnam — while other brands commanded the top positions in . based on SecondMarket Inc. At that time. Ireland. 2010.. Facebook incorporated in the summer of 2004.000. New Zealand. to everyone of age 13 and older with a valid email address.

resigned in May 2008. Adam D'Angelo. including Google-owned Orkut in India. This means that a smaller percentage of Facebook's users click on advertisements than many other large websites. chief technology officer and friend of Zuckerberg. In early 2011. Chris Hughes.5%. As of April 2011. and therefore Facebook serves only advertisements that exist in Microsoft's advertisement inventory. Jeff Rothschild.cc in Taiwan. Facebook has over 2. including Matt Cohler. Graham (Chairman). In March 2011 it was reported that Facebook removes approximately 20. an undisclosed number of celebrities. For example. Accel Partners owns 10%. the Interpublic Group owns less than 0. Facebook generally has a lower clickthrough rate (CTR) for advertisements than most major websites.000 profiles from the site every day for various infractions. Greylock Partners and Meritech Capital Partners own between 1 to 2% each. Digital Sky Technologies owns 10%. the former Sun Microsystems campus in Menlo Park. and Owen Van Natta. Facebook announced plans to move to its new headquarters.75%. including spam. Adam D'Angelo. while Google users click on the first advertisement for search results an average of 8% of the . while Reid Hoffman and Mark Pincus have sizable holdings of the company. Reports claimed that he and Zuckerberg began quarreling. Microsoft is Facebook's exclusive partner for serving banner advertising. Dustin Moskovitz owns 6%. and outside investors. Banner advertisements on Facebook have generally received one-fifth the number of clicks compared to those on the Web as a whole.000 employees. Mixi. and the remaining 30% or so are owned by employees. as part of its efforts to boost cyber security.jp in Japan. inappropriate content and underage use. CyWorld in South Korea. Peter Thiel owns 3%. Sheryl Sandberg (COO).3%. Management Key management personnel comprise Chris Cox (VP of Product). and Yahoo!'s Wretch.Eduardo Saverin owns 5%. and Donald E. California. a small group of current and former employees and celebrities own less than 1% each. Revenue Most of Facebook's revenue comes from advertising. Microsoft owns 1. and offices in 15 countries. Li Ka-shing owns 0. Ownership Mark Zuckerberg owns 24% of the company. Company. and that he was no longer interested in partial ownership of the company.certain markets. Sean Parker owns 4%.

is about 0.5 times better than Facebook's but still low compared to many other websites.49% for Wall posts. 2010). Facebook announced it had acquired FB. that users are younger and therefore better at ignoring advertising messages. some of which are maintained by organizations as a means of advertising.04% of the time (400 clicks for every one million pages). They can also create and join interest groups and "like pages" (formerly called "fan pages". some companies have reported CTR as high as 6.1 million views into 8. On pages for brands and products.000 clicks for every one million searches) Facebook's users click on advertisements an average of 0.000 visitors to their website. A study found that. until April 19.time (80. contact information. 2. managing to convert 1.com from the American Farm Bureau Federation for an undisclosed amount. and that CTR for ads tend to fall within two weeks. confirmed that successful advertising campaigns can have clickthrough rates as low as 0. On January 11. while the industry average was 25% for in-banner video ads. a social marketing platform. in comparison. however.05% to 0. The website is free to . over 40% of users who viewed the videos viewed the entire video.1%. the Farm Bureau disclosed $8. and that MySpace users spend more time browsing through content.04%. lists of personal interests.7% on Facebook (over 10 times the typical CTR for Facebook ad campaigns) for its first client. Facebook enables users to choose their own privacy settings and choose who can see specific parts of their profile. To allay concerns about privacy. Operations A custom-built data center with substantially reduced ("38% less") power consumption compared to existing Facebook data centers opened in April 2011 in te Users can create profiles with photos. and other personal information. Serena Software. Explanations for Facebook's low CTR include the fact that Facebook's users are more technologically savvy and therefore use ad blocking software to hide advertisements. Users can communicate with friends and other users through private or public messages and a chat feature.com one of the ten highest domain sales in history.Mergers and acquisitions On November 15. Sarah Smith. making the acquisition of FB. who was Facebook's Online Sales Operations Manager. 2011. announced in July 2008 that it managed to attain a CTR of 0. for video advertisements on Facebook.5 million in "domain sales income". while Facebook users spend their time communicating with friends and therefore have their attention diverted away from advertisements. Competing social network MySpace's CTR. 2010. Involver.

some complained it was too cluttered and full of undesired information. . a space on every user's profile page that allows friends to post messages for the user to see. while others were concerned it made it too easy for others to track individual activities (such as relationship status changes. Since then. On February 23. upcoming events. Depending on privacy settings. In July 2007. anyone who can see a user's profile can also view that user's Wall. Facebook began allowing users to post attachments to the Wall. Facebook was granted a patenton certain aspects of its News Feed. Pokes.Facebook allows users to upload an unlimited number of photos. and generates revenue from advertising. Initially. Users can control who sees other information they have shared. a demand that MySpace does not make. where users can upload albums and photos. as well as who can find them in searches. which appears on every user's homepage and highlights information including profile changes. while Facebook allows onlyplain text. and newly added friends. which allows users to send a virtual "poke" to each other (a notification then tells a user that they have been poked). In response. users have been able to control what types of information are shared automatically with friends.users. whereas the Wall was previously limited to textual content only. and Status. where users can upload albums and photos.] Facebook requires a user's name and profile picture (if applicable) to be accessible by everyone. They include the Wall. MySpace allows users to decorate their profiles using HTML and Cascading Style Sheets (CSS). but one significant difference between the two websites is the level of customization. Zuckerberg issued an apology for the site's failure to include appropriate customizable privacy features. including profile changes. Facebook has a number of features with which users may interact. and conversations with other users). such as banner ads. a News Feed was announced. which allows users to inform their friends of their whereabouts and actions. [76] Photos. events. The patent covers News Feeds in which links are provided so that one user can participate in the same activity of another user. through their privacy settings. Users are now able to prevent user-set categories of friends from seeing updates about certain types of activities. The media often compare Facebook to MySpace. One of the most popular applications on Facebook is the Photos application.] The patent may encourage Facebook to pursue action against websites that violate its patent. Another difference is Facebook's requirement that users give their true identity. 2006. On September 6. the News Feed caused dissatisfaction among Facebook users. This enabled spammers and other users to manipulate these features by creating illegitimate events or posting fake birthdays to attract attention to their profile or cause. which may potentially include websites such as Twitter. and birthdays of the user's friends. Wall posts. 2010.

com/facebook as opposed to http://www. and an effort was made to create a "cleaner" look. which allows users to communicate with friends and is similar in functionality to desktop-based instant messengers. whereas listings posted on Craigslist can be seen by anyone. and provides them a link to see the photo. Facebook introduced "Facebook Beta".compared with other image hosting services such as Photobucket and Flickr. limiting the groups of users that can see an album. LiveJournal. a blogging feature that allowed tags and embeddable images. The Mini-Feed and Wall were consolidated. An official Facebook application is available for the iPhone OS. Another feature of the Photos application is the ability to "tag. Blogger. and other blogging services. which points out that the major difference between the two is that listings posted by a user on Marketplace are seen only by users in the same network as that user. 2009. Facebook users were limited to 60 photos per album." or label. Facebook began g all users to the new version beginning in September 2008. For instance. 2008.] During the week of April 7.Facebook Notes was introduced on August 22.On December 11. whereby pages can be linked with simpler URLs such ashttp://www. For example. the Android OS.facebook. and a personalized message can be attached to each gift.00 each to purchase.After initially giving users a choice to switch. On May 14. 2006. 2007. On July 20. 2007. During the first years. and . which apply limits to the number of photos that a user is allowed to upload. while the privacy of another album can be set so that all Facebook users can see it. Users were later able to import blogs from Xanga. a significant redesign of its user interface on selected networks. which allows users to send virtual gifts to their friends that appear on the recipient's profile. Marketplace has been compared to Craigslist by CNET. This sends a notification to the friend that they have been tagged. Facebook released a Comet-based instant messaging application called "Chat" to several networks. this limit has been increased to 200 photos per album. On June 13.facebook.[101]Many new smartphones offer access to the Facebook services either through their web-browsers or applications. then the user can tag the friend in the photo. which lets users post free classified ads.com/profile. Facebook introduced a "Usernames" feature. Facebook launched Gifts on February 8. users in a photo. 2008. 2008. As of May 2009. if a photo contains a user's friend.php?id=20531316728. it was announced that Facebook was testing a simpler signup process. Gifts cost $1. the privacy of an album can be set so that only the user's friends can see the album. Facebook launchedMarketplace. profiles were separated into tabbed sections.[87][88][89][90] Privacy settings can be set for individual albums.

the website's ranking among all websites increased from 60th to 7th in Quantcast ranks the website 2nd in the U. including Canada." The launch of such a feature had been anticipated for some time before the announcement. followed by Middle East-Africa (67 percent). and the hCard microformat for the events' venues. 60% of which responded that they believed that Facebook was the social network that posed the biggest threat to security. Latin America (58 percent). instant messaging. Facebook began to use the hCalendar microformat to mark up events.comranks it 2nd in the worldwide traffic.6 million people. [107] According to Alexa. Facebook penetration is highest in North America (69 percent)." The system. 2010. Facebook is the most popular social networking site in several English-speaking countries. In regional Internet markets. and Asia-Pacific (17 percent). Reception According to comScore. Europe (57 percent).S. ComScore reports that Facebook attracted 130 million unique visitors in May 2010. and will include privacy settings similar to those of other Facebook services. In a media event that day. This feature which is provided free through T-Mobile's new Bobsled service lets the user add voice to the current Facebook Chat as well as leave voice messages on Facebook. Facebook announced a new "Facebook Messages" service.com email addresses. More than 150 million active users access Facebook through mobile devices across 200 mobile operators in 60 countries. Twitter. Sophos's "Security Threat Report 2010" polled over 500 firms. Nokia and Research In Motion both provide Facebook applications for their own mobile devices.the WebOS.S.[110] The website is the most popular for uploading photos. but it's not email. and LinkedIn. CEO Mark Zuckerberg said. and is currently 2nd. . in traffic. Facebook is the leading social networking site based on monthly unique visitors. the United Kingdom. with some calling it a "Gmail killer. having overtaken main competitor MySpace in April 2008. and Compete. with 50 billion uploaded cumulatively. Codenamed "Project Titan.As of April 2011 Facebook users now have the ability to make live voice calls via Facebook Chat allowing users to chat with others from all over the world. [108] U. combines text messaging. to be available to all of the website's users. enabling the extraction of details to users' own calendar or mapping applications. and regular messages. well ahead of MySpace. and the United States.[111] In 2010. an increase of 8. from September 2006 to September 2007. On November 15. "It's true that people will be able to have an @facebook. emails." Facebook Messages took 15 months to develop.[102][103] In February 2011.

. the New Zealand High Court associate justice David Glendall allowed for the serving of legal papers on Craig Axe by the company Axe Market Garden via Facebook. the United Kingdom and Indonesia. In 2010. Inc. Facebook was named the second most popular thing among undergraduates. In December 2009. [121] In a 2006 study conducted by Student Monitor. In December 2008.e. the class action lawsuit arising out of Facebook's Beacon program. after the United States. the New Oxford American Dictionary declared its word of the year to be the verb "unfriend". Also in early 2010. an avowed parody (and privacy advocacy) website that enables text-based searches of those Wall posts that are available to "Everyone". Judge Richard Seeborg issued an order approving the class settlement in Lane v. the Supreme Court of the Australian Capital Territory ruled that Facebook is a valid protocol to serve court notices to defendants. tied with beer and only ranked lower than the iPod. Openbook was established. On March 2010. 'I decided to unfriend my roommate on Facebook after we had a fight. Collins English Dictionary declared "Facebook" as its new Word of the Year. Facebook received a score of 64 out of 100. Facebook won the Crunchie "Best Overall Startup Or Product" for the third year in a row and was recognized as one of the "Hottest Silicon Valley Companies" by Lead411. frequent changes to the website's interface. In 2008. i. to everyone on the Internet. or 10% of Indonesia's population.[120] and winning the "People's Voice Award" from the Webby Awards in 2008.' In April 2010. in a July 2010 survey performed by the American Customer Satisfaction Index. according to The New York Times. a New Jersey-based company specializing in research concerning the college student market. . Employers (such as Virgin Atlantic Airways) have also used Facebook as a means to keep tabs on their employees and have even been known to fire them over posts they have made. By 2005. However. and cable companies. It is believed to be the world's first legal judgement that defines a summons posted on Facebook as legally binding.[126] In March 2009. airlines. and spam. countries with the most Facebook users were the United States. placing it in the bottom 5% of all private-sector companies in terms of customer satisfaction. the use of Facebook had already become so ubiquitous that the generic verb "facebooking" had come into use to describe the process of browsing others' profiles or updating one's own. with 24 million users. defined as "To remove someone as a 'friend' on a social networking site such as Facebook.[133] Indonesia has become the country with the second largest number of Facebook users. Facebook. the results returned by the News Feed. The reasons why Facebook scored so poorly include privacy problems. alongside industries such as the IRS e-file system. As in.The website has won awards such as placement into the "Top 100 Classic Websites" by PC Magazine in 2007.

The privacy of Facebook users has also been an issue. Social impact Facebook has affected the social life and activity of people in various ways. conducted by PR giant Burson-Marsteller. Criticism Facebook has met with controversies. The company began its push by inviting a select group of British advertising leaders to meet Facebook's top executives at an "influencers' summit" in February 2010. Facebook launched a new portal for marketers and creative agencies to help them develop brand promotions on Facebook. Facebook collects as much data from its visitors as Google and Microsoft. It has also been banned at many workplaces to prevent employees wasting their time on the site. 2007. The apps used an HTTP referrer which exposed the user's identity and sometimes their friends'. "We have taken immediate action to disable all applications that violate our terms". Vietnam. Facebook has now been involved in campaigns for True Blood. It has been blocked intermittently in several countries including the People's Republic of China.American Idol. Iran. and Top Gear. It can reunite lost family members and friends. Facebook said. In 2010. Pakistan. Facebook launched Facebook Beacon. Syria. it was banned in many countries of the world on the basis of allowed content judged as anti-Islamic and containing religious discrimination. was paid for by Facebook in what CNN referred to as "a new level skullduggery" and which Daily Beast called a "clumsy smear. which was an ultimately failed attempt to advertise to friends of users using the knowledge of what purchases friends made. the security team began expanding its efforts to reduce the risks to users' privacy.and Bangladesh on different bases. In May 2011 emails were sent to journalists and bloggers making critical allegations about Google's privacy policies. however it was later discovered that the anti-Google campaign. Facebook has settled a lawsuit regarding claims over source code and intellectual property. One such reunion was between John Watson and the daughter he . On November 6. and the safety of user accounts has been compromised several times.] Uzbekistan.Writers for The Wall Street Journal found in 2010 that Facebook apps were transmitting identifying information to "dozens of advertising and Internet tracking companies". Privacy According to comScore. an internet marketing research company." Media impact In April 2011. For example. but considerably less than Yahoo!.

register to vote. shortly before the New Hampshire primary. Several news stories have suggested that using Facebook causes divorce and infidelity.000. This debate showed the broader community what many young students had already experienced: Facebook was an extremely popular and powerful new way to interact and voice opinions. In August 2010. Uriminzokkiri.had been searching for 20 years. and message questions Over 1. when Facebook teamed up with ABC and Saint Anselm College to allow users to give live feedback about the "back to back" January 5 Republican and Democratic debates. whose staff was researching Syphilis.000 people installed the Facebook application 'US politics' in order to take part.com illustrates how the "facebook effect" has affected youth voting rates. support by youth of political candidates.[149] Another father-daughter reunion was between Tony Macnauton and Frances Simpson who had not seen each other for nearly 48 years. An inspiration to other residents of the care home in . and the application measured users' responses to specific comments made by the debating candidates. In February 2008."[161] Media  At age 102. Charles Gibson moderated both debates. They met after Watson found her facebook profile. a Facebook group called "One Million Voices Against FARC" organized an event in which hundreds of thousands ofColombians marched in protest against the Revolutionary Armed Forces of Colombia. better known as the FARC (from the group's Spanish name). The reports of this research were rebuked by Facebook as "ignoring the difference between correlation and causation. but the claims have been questioned and refuted by other commentators. held at the Dana Center for the Humanities at Saint Anselm College. one of North Korea's official government websites and the official news agency of the country. Facebook users took part in debate groups organized around specific topics. and general involvement by the youth population in the 2008 election. making her one of the oldest people ever on Facebook. An article by Michelle Sullivan of Uwire. Ivy Bean of Bradford. linked and attributed a rise in Syphilis cases in areas of Britain to Facebook. Some studies have named Facebook as a source of problems in relationships. Political impact Facebook's role in the American political process was demonstrated in January 2008. England joined Facebook in 2008. joined Facebook. In 2010 an English director of public health.

The film was distributed by Columbia Pictures. The film was written by Aaron Sorkin and adapted from Ben Mezrich's 2009 book. Genius. "You Have 0 Friends". and Betrayal.  The Social Network.000 followers on Twitter. However. but because they fancied the meaning behind the word. Sarah. Mark Zuckerberg has said that The Social Network is inaccurate. She visited Prime Minister Gordon Brown and his wife. one of Facebook's co-founders. Eduardo Saverin. 2011. A Tale of Sex. when she passed the maximum number of friends allowed by Facebook.  On February 22. a drama film directed by David Fincher about the founding of Facebook. 2010.962 friends on Facebook and more than 56. an April 2010 episode of the American animated comedy series. a December 2008 episode of the British sitcom. an Israeli couple named their daughter after the Facebook "like" feature. and Armie Hammer as Cameron and Tyler Winklevoss. she had 4. including Zuckerberg. Andrew Garfield as Eduardo Saverin. an Islamic version of the website was created. No staff members of Facebook. At the time of her death in July 2010. was released October 1. Some time after creating her Facebook page. parodied Facebook and social networking sites in general. Justin Timberlake as Sean Parker. titled The Accidental Billionaires: The Founding of Facebook. .which she lived. was a consultant for Mezrich's book.] The film features an ensemble cast consisting ofJesse Eisenberg as Mark Zuckerberg. Money. 2011. called MillatFacebook.  In response to the Everybody Draw Mohammed Day controversy and the ban of the website in Pakistan. The IT Crowd. were involved with the project. She became the oldest person to ever use the Twitter website. Bean also joined Twitter. South Park.  On May 16. Her death was widely reported in the media and she received tributes from several notable media personalities.  "FriendFace". They explained that it wasn't to advertise for Facebook. she quickly became more widely known and several fan pages were made in her honor. in Downing Street early in 2010.  American author Ben Mezrich published a book in July 2009 about Mark Zuckerberg and the founding of Facebook. parodied Facebook. an Egyptian baby was named "Facebook" to commemorate the vital role Facebook and other social media played in Egypt's revolution.

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