Anjesh TuladharNov 5th 2008

MBA-e 08

The beginning…Launched on Feb 4 2004By Mark Zuckerberg with his friends Dustin

Moskovitz, Chris Hughes and Eduardo Saverin Limited to Havard University

Expanded to other colleges in Ivy LeagueThen university studentsThen high school studentsFinally world-wide

Mark ZuckerbergBorn May 14, 1984Havard dropout

In 2008, Forbes Magazine declared him “the youngest billionaire on earth and possibly the youngest self-made billionaire ever", with an estimated net worth of $1.5 billion USD

Funding• US$500,000 - PayPal co-founder Peter Thiel (June

2004)• $12.7 million in venture capital from Accel Partners

(a year later)• $27.5 million more from Greylock Partners • $246 million Microsoft purchased 1.6% share of

Facebook (Oct 2007)

Why people invested in facebook?

Revenues2007 - $150 million2008 - $300-$350 million (est)

Some factsEmployees: 600+Users: 120 million active (users who have returned

to the site in the last 30 days)Offices:

Palo Alto, Calif. (headquarters)New YorkLondonInternational headquarters in Dublin, Ireland

Where do they earn money from?

Income sources• Facebook Gifts ($1 per transaction; millions of gifts

have been sold) • Facebook banner ads served by Microsoft• Premiere Sponsored Ads and Sponsored Groups

(ads & groups purchased for large fees that are supplanted onto the tops of many users’ news feeds)

• Facebook targeted advertising (ads created by Facebook users with specific demographic targets)

Also Maybe from you!!

The basic problem with ANY social network that tries to monetize itself after selling it’s "free, no-strings-attached" service to users is that it eventually has to sell out its own user base to make a buck, and this is often done, as Facebook has demonstrated, without any regard to the potential cost inflicted upon its users.

Is it possible?

Terms of use

http://www.facebook.com/terms.php?ref=pf

By posting User Content to any part of the Site, you automatically grant … worldwide license (with the right to sublicense) to use, copy, publicly perform, publicly display, reformat, translate, excerpt (in whole or in part) and distribute such User Content for any purpose, commercial, advertising, or otherwise, on or in connection with the Site or the promotion thereof, to prepare derivative works of, or incorporate into other works, such User Content, and to grant and authorize sublicenses of the foregoing.

Does it affect us as an individual?

Thank you!