By offering a suite of tools for websites to add a social network layer, Google isn't challenging established players like Facebook and MySpace, but instead sites offering customizable, turnkey social networks. In other words, look out, Marc Andreessen: Larry and Sergey just declared themselves the Microsoft to Ning's Netscape. [News.com]
Adam D'Angelo's departure "broke my heart," one Facebook insider told us. But Facebook's backers are shedding no tears. We hear that both Peter Thiel's Founders Fund and Accel Partners are considering D'Angelo for an entrepreneur-in-residence role — a sinecure venture capital firms offer Valley executives while they're looking for a new startup idea. He's also talking to Google, which is surely eager to reverse the flow of its employees to Facebook.
Technologists are instinctively averse to debt. The cycles are too swift and mistakes too punishing, the conventional wisdom says, to subject a startup to the burden of debt; cash is better spent on growth opportunities than interest. But Facebook has never followed the usual script for a startup, and its CFO, Gideon Yu, is no herd-follower, either. No wonder that the news that Facebook is leasing $100 million worth of servers, after raising a $360 million round of venture capital from Microsoft and Li Ka-Shing, is causing such a ruckus — and some misconceptions. Here are the instant myths that have arisen:
His patron saints are Facebook founder Mark Zuckerberg and YouTube cofounder Chad Hurley. He wears Robert Marc spectacles his publicist picked out for him, and last summer, when he rented a Villa next to Jade Jagger's, Nicole Richie called him a "dork loser." He's the "Nerdling" from The Official Filthy Rich Handbook by Christopher Tennant, due out in June. An excerpt, below.
The Facebook Prom was prophetic, signaling farewells, graduation, and the ending of teenage ties. As his colleagues were preparing to dance the night away at the Metreon, CTO Adam D'Angelo, a high school buddy of CEO Mark Zuckerberg, was saying his farewells. BoomTown reports that D'Angelo, 23, is leaving the company because "his responsibilities no longer fit well with his skills and interests." Even as the company tries to recreate a high-school environment to keep its employees tightly knit, Zuckerberg's own social network is fraying.
It's true: Facebook held a prom for its employees in San Francisco last night at the Metreon. The shopping mall-cineplex's fourth floor was tastefully decorated with white flowers, and the gathered Facebookers were dressed up — and so youthful, you might think it was an actual prom, save for the booze being poured at the open bars. (Ubiquitous photographee Julia Allison, who was invited, did not attend, staying in New York for a book party instead.) Why throw a prom? Facebook is going all-out for prom season this year, with a tie-in to Sony's Prom Night and a prom-dress partnership with Sears. Why not reward employees working on prom marketing campaigns with a throwback prom of their own?
While out and about, a possibly over-enthusiastic Valleywag correspondent heard rumors of a Facebook "prom" being held at the highly anticipated, but as yet unopened, new San Francisco branch of New York's famed Tavern on the Green within the Metreon in SOMA. Those lucky few on the inside remember: Pics or it didn't happen! Update: There is indeed a private Facebook party on the fourth floor of the Metreon, but of course the Tavern on the Green won't take over the space until at least next year.(Photo by Shiny Things)
Facebook's formal announcement of Facebook Connect is at once a transparently timed response to MySpace's announcement of partnerships with eBay and Twitter yesterday and the culmination of things the social network has been working on for ages. Facebook Connect, at its simplest, lets websites like Digg and Twitter integrate their users' activity into Facebook users' News Feeds. Those two companies, as well as Yahoo's Flickr and Google's Picasa, have been using Facebook Connect well before it was unveiled under that name. It cements Facebook's role as a central place to keep up with one's friends. Yet I'm not sure how I feel about it.
LiveJournal founder Brad Fitzpatrick is a prankster, as evidenced by his Halloween costume last year, when the new Googler dressed up as Facebook to mock his coworkers' fears of the social network. I'm told that in Once You're Lucky, Twice You're Good, Sarah Lacy's new book about Web 2.0, there's an anecdote about Fitzpatrick submitting an expense report — successfully! — for "hookers and blow" when he worked at blog software startup Six Apart. That was likely a reference to the early days of LiveJournal, when users made ridiculous accusations that Fitzpatrick was spending money meant for servers and bandwidth on "hookers and blow." We'd love to hear more, but alas, Fitzpatrick only got 8 out of 294 pages, according to the book's index. Here's the page for "D" through "F":
Everyone wants to sell ads like Amazon.com sells books — one click and it's done. Social networks Facebook and MySpace as well as ad networks AdBrite, AdReady and AdItAll have all followed Google to offer advertisers do-it-yourself buying options. The trend has led both the Wall Street Journal and PaidContent to wonder if online ad sales teams will go the way of the dodo, or at least the travel agent. The answer — especially for social networks MySpace and Facebook — is no.
We've toured the top 10 workspaces in tech. Click to viewNow, we've gone back to Office Snapshots to find the 10 worst. What makes them so bad? Some offend with exposed fluorescent lights, gray cubicles and a dystopian corporate sheen. But others, with their pseudo-hip graffiti, kindergarten toys and plastic decorations — all in a desperate attempt to seem "Internet-y" — come off even worse. We'll start with Yahoo's New York digs.
Looking at the departure of top Google flack Elliot Schrage for Facebook and concluding that the search engine is suffering a "brain drain" is the laziest journalism on the subject I could imagine. The BBC's take on the subject is predictable, citing the same names — Ben Ling, Ethan Beard, even chef Josef Desimone — everyone else does. The most telling thing is actually a Google spokesbot's programmed response: "We have a deep management pool at Google." The problem at Google is not that its brains are going out the drain. It's that the drain is plugged up, and not nearly enough are leaving.
Few people outside Silicon Valley have heard of Roelof Botha. But the former CFO of PayPal is famous here. His two claims to fame: negotiating that company's $1.5 billion sale to eBay, and later, as a partner at Sequoia Capital, investing in YouTube and quickly flipping the startup to Google for $1.65 billion. Is it a coincidence that that figure is 10 percent higher than his PayPal score? Few insiders think so. Botha gets four pages in Sarah Lacy's Once You're Lucky, Twice You're Good — more than Google cofounder Sergey Brin. Other figures who appear on the second page of her Web 2.0 book's index: John Battelle, Ning CEO Gina Bianchini, Facebook board member Jim Breyer, blog blowhard Jason Calacanis, and YouTube cofounder Steve Chen, whom Botha made quite wealthy.
At the direction of 49 state attorneys general, Facebook has adopted even more provisions to restrict interactions between adults and teenagers. Along the changes are automatic reviews of any age-changes made to underage user profiles, and the deletion of links to "pornographic materials." Even though most young people approached for sex by adults on social networks are already onto their date-of-birth deception, Chief Privacy Officer Chris Kelly's pledge to make Facebook safer for The Children makes for a good press op. Will the new rules make any difference, and how are they going to be implemented? We've asked Facebook how many engineers report to Kelly, but until they get back to us, it's safe to guess exactly none.
Mark Zuckerberg's in India, we hear. Is he there on holiday, or working to launch Facebook India? The answer's unclear, but Indian gossip website Techgoss.com wants to know the answer pretty badly. So badly that they're offering a 10,000-rupee reward for anyone who turns up photos of Zuckerberg and a detailed story on what he's up to. That translates to $250 — or a week's wages for an Indian computer programmer. (Photoillustration by Jackson West)
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Food wrappers everywhere and a little smelly — Facebook's offices remind me of my sophomore hall. Except instead of drunks vandalizing the place, Zuckerberg paid a kid to go at the walls with a spraycan. This was done to reinforce Facebook's vibrant, youthful culture by ensuring any visiting adults would rather gouge their eyeballs out before ever returning. (Photos by Outer Edge Studio, fcb, eston and cavemonkey50)
When I ran into former Facebook COO Owen Van Natta at last night's Fast Company party, he was in high spirits, claiming to enjoy life as an unemployed dad. But he's made no secret of his desire to get back into the startup game at some point — this time as CEO, not a dispensable No. 2. Which is why this photo, sent by a tipster, of Van Natta doing shots of Jägermeister with ex-Facebooker Darian Shirazi, got us thinking. Shirazi has a startup, Redux, which raised $3.5 million in funding last month. Redux is working on automated ways of finding friends online, but it's better known for its FlickIM instant-messaging client for the iPhone. It may not be the next Facebook, but one has to think Van Natta could do worse than running Redux, and Shirazi could do worse than landing Van Natta.
Earlier today, we reported that participation in Facebook's developer forum is down, most likely due to Facebook's new restrictions on Facebook-application spam. We praised these new rules, saying Facebook won't miss its lousiest apps. Now an executive from a major, well-funded widgetmaker tells us, "Your post misses the point." Before you reach for the "Block" button, hear him out:
