CEO & President Facebook |

FACEBOO
K
ENTREPRENEUR MARK ZUCKERBERG
15/10/2011

A Project on Entrepreneur Mark Zuckerberg

Small and Medium Enterprise

Jointly Presented 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,
although he has since described himself White Plains, New York
as an atheist.
Residence Palo Alto, California
At Ardsley High School he had
excelled in the classics before in his Nationality American
junior year transferring to Phillips
Alma mater Harvard College (dropped out in 2004)
Exeter Academy, where Zuckerberg
won prizes in science (math, astronomy Occupation CEO/President of Facebook
and physics) and Classical studies (on (24% shareholder in 2010)
his college application, Zuckerberg
listed as non-English languages he could Years 2004–present
read and write: French, Hebrew, Latin, active
and ancient Greek) and was captain of
Known for Co-founding Facebook; becoming world's
the fencing team. In college, he was
youngest billionaire.
known for reciting lines from epic
poems such as The Iliad.
Home town Dobbs Ferry, New York

Net worth  US$6.9 billion (2010)

Early years
Relatives Randi Zuckerberg (sister)
Zuckerberg began using
computers and writing software as a Awards Time Person of the Year 2010
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," adding that it was "tough to stay ahead of
him." Zuckerberg also took a graduate course in 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-klutz," 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 Magazine. 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 apologized 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."

Philanthropy
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.

Facebook
Founding and goals
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 Moskovitz. 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 Moskovitz

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.

History 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 Users Days later Monthly growth

— 600 175 (ongoing) —

February 5, 2010 400 143 6.99%

July 21, 2010 500 166 4.52%

August 26, 2008 100 1,665 178.38%

April 8, 2009 200 225 13.33%

September 15, 2009 300 150 10%

Financials
Facebook received its first investment of US$500,000 in June 2004 from PayPal co-
founder 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 before 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, BusinessWeek 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 — about 150, according to the scientist Robin
Dunbar. Dunbar's number — 150 — 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 —
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.