| Facebook is the second largest social network on the | | | | student network phenomenon, Zuckerberg and |
| web, behind only MySpace in terms of traffic. Primarily | | | | Moskovitz dropped out of Harvard to pursue their |
| focused on high school to college students, Facebook | | | | dreams and run Facebook full time. In August 2005, the |
| has been gaining market share, and more significantly | | | | Facebook was officially called Facebook and the |
| a supportive user base. Since their launch in February | | | | domain was purchased for a reported $200,000. |
| 2004, they’ve been able to obtain over 8 million | | | | Availability |
| users in the U.S. alone and expand worldwide to 7 | | | | Unlike its competitors MySpace, Friendster, Xanga, hi5, |
| other English-speaking countries, with more to follow. A | | | | Bebo, and others, Facebook isn’t available to |
| growing phenomenon, let’s discover Facebook. | | | | everyone — which explains its relatively low user |
| Facebook’s shares have already gone up | | | | count. Currently, users must be members of one of |
| significantly since the company’s early days. | | | | the 30,000+ recognized schools, colleges, universities, |
| According to filings with the California Department of | | | | organizations, and companies within the U.S, Canada, |
| Corporations, Facebook’s common shares were | | | | and other English-speaking nations. This generally |
| priced at 78 cents in January of 2006. By May of that | | | | involves having a valid e-mail ID with the associated |
| year, they had jumped to $8.05. In August of this year, | | | | institution. |
| they were $6.61. Incorporation filings in Delaware show | | | | Business & Funding |
| that Facebook split its shares 4-to-1 in July of 2006 so | | | | Given the situation other social networks on the web |
| on a split-adjusted basis the shares were priced at 19.5 | | | | are facing, Facebook is in a good position financially. |
| cents in January 2006. That means Facebook’s | | | | While it hasn’t managed to get acquired like its rival |
| sense of its own worth has risen by more than 33-fold | | | | MySpace (despite some rumors about an $800m deal |
| in less than two years. Facebook hasn’t filed the | | | | with Viacom), it’s been quite lucky in most aspects. |
| price of its common shares following the Microsoft | | | | For its initial funding, it received $500,000 from Peter |
| investment. But on October 18, if filed with the State of | | | | Theil, co-founder of PayPal. A few months later, it was |
| Delaware to split its stock four for one again. | | | | also able to get $13 million from Accel Partners, who |
| History | | | | are also investors in 15 other Web 2.0 startups, and |
| Facebook is a social networking website that allows | | | | $25 million from Greylock Partners, making their overall |
| people to communicate with their friends and | | | | venture equal to approximately $40 million. |
| exchange information. Launched on February 4, 2004, | | | | The Future |
| Facebook was founded by Mark Zuckerberg, a | | | | Facebook is a massively successful social networking |
| former member of the Harvard Class of 2006 and | | | | service that grew to prominence in virtually no time. |
| former Ardsley High School student. Within months, | | | | It’s not hard to see why: its features and tools are |
| Facebook and its core idea spread across the dorm | | | | highly appealing, and Facebook users are extremely |
| rooms of Harvard where it was very well received. | | | | well networked in real life. Rumors of an acquisition |
| Soon enough, it was extended to Stanford and Yale | | | | continue to circulate, with some estimates putting the |
| where, like Harvard, it was widely endorsed. Before he | | | | price in the billions of dollars. In the short term, however, |
| knew it, Mark Zuckerberg was joined by two other | | | | Facebook plans to go it alone, continuing to build out |
| fellow Harvard-students - Dustin Moskovitz and Chris | | | | one of the world’s most successful social |
| Hughes - to help him grow the site to the next level. | | | | networks. |
| Only months later when it was officially a national | | | | |