Founded:
February 1, 2004
Headquarters:
Menlo Park, CA
Description:
Facebook is an online social networking service that allows users to connect with friends and family, and make new connections.
Founders:
Eduardo Saverin, Chris Hughes, Dustin Moskovitz, Mark Zuckerberg, Andrew McCollum
Categories:
Networking, Communities, Identity, All Students, Colleges, Facebook Applications, Social Media
Website:
http://facebook.com

Detailed Description

Update

Facebook is the world’s largest social network, with over 1.15 billion monthly active users.

Facebook was founded by Mark Zuckerberg in February 2004, initially as an exclusive network for Harvard students. It was a huge hit: in 2 weeks, half of the schools in the Boston area began demanding a Facebook network. Zuckerberg immediately recruited his friends Dustin Moskovitz, Chris Hughes, and Eduardo Saverin to help build Facebook, and within four months, Facebook added 30 more college networks.

The original idea for the term Facebook came from Zuckerberg’s high school (Phillips Exeter Academy). The Exeter Face Book was passed around to every student as a way for students to get to know their classmates for the following year. It was a physical paper book until Zuckerberg brought it to the internet.

With this success, Zuckerberg, Moskowitz and Hughes moved out to Palo Alto for the summer and rented a sublet. A few weeks later, Zuckerberg ran into the former cofounder of Napster, Sean Parker. Parker soon moved in to Zuckerberg’s apartment and they began working together. Parker provided the introduction to their first investor, Peter Thiel, cofounder of PayPal and managing partner of The Founders Fund. Thiel invested $500,000 into Facebook.

With millions more users, Friendster attempted to acquire the company for $10 million in mid 2004. Facebook turned down the offer and subsequently received $12.7 million in funding from Accel Partners, at a valuation of around $100 million. Facebook continued to grow, opening up to high school students in September 2005 and adding an immensely popular photo sharing feature the next month. The next spring, Facebook received $25 million in funding from Greylock Partners and Meritech Capital, as well as previous investors Accel Partners and Peter Thiel. The pre-money valuation for this deal was about $525 million. Facebook subsequently opened up to work networks, eventually amassing over 20,000 work networks. Finally in September 2006, Facebook opened to anyone with an email address.

In the summer of 2006, Yahoo attempted to acquire the company for $1 billion dollars. Reports actually indicated that Zuckerberg made a verbal agreement to sell Facebook to Yahoo. A few days later when Yahoo’s stock price took a dive, the offer was lowered to $800 million and Zuckerberg walked away from the deal. Yahoo later offered $1 billion again, this time Zuckerberg turned Yahoo down and earned instant notoriety as the “kid” who turned down a billion. This was not the first time Zuckerberg turned down an acquisition offer; Viacom had previously unsuccessfully attempted to acquire the company for $750 million in March 2006.

Not long after, in October 2007, Microsoft invested $240 million into Facebook for 1.6 percent of the company in. This meant a valuation of over $15 billion, making Facebook the 5th most valuable US Internet company, yet with only $150 million in annual revenue. Many explained Microsoft’s decision as being solely driven by the desire to outbid Google.

Facebook continued to receive funding, most notably in January 2011 receiving a $1.5 billion round, valuing the company at $50 billion. A year later, in February 2012, Facebook announced that it was filing for its long-anticipated initial public offering. The company went public on May 18, 2012, opening on the NASDAQ with shares trading at $42.05.

One sour note for Facebook has been the controversy with social network ConnectU. The founders of ConnectU, former classmates of Mark Zuckerberg at Harvard, allege that Zuckerberg stole their original source code for Facebook. The ordeal has gone to court, and has now been resolved.

Notwithstanding this lingering controversy, Facebook’s growth has been staggering. Facebook announced astonishing numbers in February 2012 upon filing for its IPO. As of July 2013, over 1.15 billion users log into Facebook every month, and 669 million users log in daily. Mobile users now make up half of Facebook’s user base, with 819 million monthly actives. Facebook has also announced that by the end of 2011 there had been 100 billion friend connections, and in recent months users had been registering 2.7 billion Likes and Comments per day. Facebook is one of the most trafficked sites in the US, and its international growth has been impressive. Additionally, Facebook is the top photo sharing site with 250 million photos uploaded per day.

Facebook users’ passion—or addiction—to the site is unparalleled: more than half use the product every single day and users spend an average of 19 minutes a day on Facebook. The site’s popularity has garnered it pop culture fame, so much so that in 2010 a feature film entitled The Social Network was released which chronicled Facebook’s inception.

In its 2012 IPO filing, Facebook announced that it intends to grow in the near future by expanding its global user base, increasing engagement by developing new social tools, improving the mobile experience, and creating more value for advertisers and users.

Current Team (137)

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Past Team (187)

Update

Funding Rounds (11) - $2.4B

Update

Investments (3)

Update

Board Members and Advisors (9)

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Sub Organizations (2)

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Products (16)

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  • P3aeiw7jkypkq07mm2ui

    Facebook Platform

    Facebook announced the deployment of the Facebook Platform during the f8 conference on May 24,...
  • A9dqxxpibelkhaq7kvad

    Facebook News Feed

    Facebook's News Feed is a bulletin on users' home pages that automatically broadcasts...
  • 239c39f5194d590066e21dde884ec283

    Facebook Mobile

    Facebook's Mobile app allows users to check their latest photos and status updates, use...
  • Vada8zetcgjxxkik4mnh

    Facebook Chat

    Facebook Chat is a service which allows for real-time communication with Facebook friends....
  • 83af1c765d94b0ab4d4ed48ab86e3e11

    Facebook Connect

    Facebook Connect allow users to connect their Facebook identity, friends and, privacy to any...
  • Ulufocov3l3ou5u6dtz7

    Facebook Places

    Facebook's Places is a location function within the Facebook application on mobile phones....
  • 48fa34cd7b007acbd8b0f21cf9a97d8a

    Facebook Zero

    Facebook Zero is a light-weight, text-only version of facebook.com that omits data intensive...
  • Iwzetvzy7r8yu6u24gne

    Facebook Lite

    Facebook Lite was a slimmed-down version of the popular social-networking site, Facebook.

Acquisitions (49)

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Investors (16)

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  • 1a38f8b244c49d049b5ad8ab0d9792e5

    Accel Partners

    Accel Partners is a global venture capital firm with offices located in Silicon Valley, New York,...
  • B0b77dbd1a527c355b93dbe079f87239

    Meritech Capital Partners

    Meritech Capital is a provider of late-stage venture capital to information and medical...
  • 01492abbd361d12a7193e4965d1c7af2

    Goldman Sachs

    Multinational investment banking firm
  • 43ce7bb89b760adc8b2eae713dd5202d
  • B3f58e60a53e9b113cc71c1a0d0fba8a

    Digital Sky Technologies

    Late-stage Internet Investment Firm
  • A0e5d6f32d9cbd2df585c08a47263f5e

    Founders Fund

    Founders Fund is a venture capital firm investing at every stage in companies with revolutionary...
  • 8eea27bf07006083d918902cb6d60d0f

    Elevation Partners

    Elevation Partners is a newly formed private equity firm that makes large-scale investments in...
  • 6835990abacfb4d14ecdbfc87641e469

    Microsoft

    Microsoft, a software corporation, develops licensed and support products and services ranging...

Offices/Locations (3)

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  • Europe HQ

    Dublin,

    IRL

  • Headquarters

    1601 Willow Road

    Menlo Park, CA 94025

    USA

  • New York

    340 Madison Ave

    New York, NY 10017

    USA

Competitors (9)

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  • Dbb66594bc72573c5c6e27c60c4535e8

    Tackk

    Tackk is a web platform that allows anyone to create and share messages, photos, videos, maps,...
  • 08db30eedd4317004328f3e65adc3f92

    AOL

    AOL is a Brand company committed to innovating, growing and investing in brands and experiences...
  • Af673cede215846934e1297c3933e64d

    Bebo

    Bebo is a social networking site allowing users to create profiles, connect with friends, watch...
  • F0ff8bb20c65c733435470bcca7cefae

    Flickr

    Flickr is an online image and video hosting website allowing users to share and embed personal...
  • A5aa6faa2105afc046a3b32e51977a7e

    hi5

    Hi5 is a social networking site that allows its users to create, upload, and share content with...
  • Edf5c6a546023b6f28206e73a443ea10

    FriendFeed

    FriendFeed is a feed aggregator that consolidates updates from social media, social bookmarking...
  • 866b5bdb69d659201e9356b88a7bb6f0

    Slide

    Slide enables users to create and personalize widgets and use them on social networks, blogs and...
  • 637f0220851826d69c56053c9e8c8f14

    Friendster

    Friendster is a social gaming site focused on providing users with entertainment and fun.

Partners (2)

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  • Cb21cfff35efafe7fdb4945e7bc71c59

    Acxiom

    Acxiom is a SaaS-based company providing enterprise data analytics to fuel data-driven results.
  • Bbc790ba8f0ee7fbf807df825afe40fd

    Datalogix

    Datalogix uses digital media and offline purchasing data to provide analytics and meaningful...

Customers (1)

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  • Dxbvmitnrtj0kun3ic8r

    Ouyeaa

    Ouyeaa is a web-search platform for booking leisure activities and bachelor parties.

Images (1)

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  • 53b9757aa739a2e653f5e28473cfc2d7

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