Read on Twitter
When I worked at Facebook, Zuck told the story of how he turned down $1 BILLION from Yahoo.
In hindsight, it seems obvious. But at the time it was his most difficult decision.
In July 2006, FB was only 2 years old with 8 million users, $30M in Revenue, and unprofitable.
In hindsight, it seems obvious. But at the time it was his most difficult decision.
In July 2006, FB was only 2 years old with 8 million users, $30M in Revenue, and unprofitable.
The entire leadership team wanted Zuck to take the offer. But he didn't agree.
It was life-changing money for himself and the employees, but he didn't believe that Yahoo had a clue about the future.
He was scared everyone would hate him, but trusted his intuition.
It was life-changing money for himself and the employees, but he didn't believe that Yahoo had a clue about the future.
He was scared everyone would hate him, but trusted his intuition.
On Monday morning after the offer, Zuck met with the other 2 board members, Peter Thiel and Jim Breyer ( @jimihendrixlive). Zuck said:
"This is kind of a formality, just a quick board meeting, it shouldn't take more than 10 minutes. We're obviously not going to sell here."
"This is kind of a formality, just a quick board meeting, it shouldn't take more than 10 minutes. We're obviously not going to sell here."
Peter and @jimihendrixlive mentioned how they need to talk about this in more detail. It was a lot of money.
Zuck said even if he did take the money, the only thing he'd want to build would be the same social network he already was working on at FB.
Zuck said even if he did take the money, the only thing he'd want to build would be the same social network he already was working on at FB.
Peter and @jimihendrixlive decided to respect Zuck's decision, but even Thiel was worried at the time.
He went along with it b/c a Founders Fund principle is to "always back the founder" (is this why founders love @zebulgar and @rabois ... or is it their Barry's workouts?)
He went along with it b/c a Founders Fund principle is to "always back the founder" (is this why founders love @zebulgar and @rabois ... or is it their Barry's workouts?)
Remember, FB's success was not guaranteed. They had no ads in the feed, hadn't opened up the site beyond college users, and Mobile was still a handful of years away.
In a different world, the feed doesn't work, mobile doesn't take off, and Zuck loses out on $1 Billion
In a different world, the feed doesn't work, mobile doesn't take off, and Zuck loses out on $1 Billion
Ultimately, Facebook ends up shipping News Feed & Open Registration. A year and a half later, they're valued at $15B.
@DanRose999 has a good backstory about this here: https://twitter.com/DanRose999/status/1292153445583974400?s=20
@DanRose999 has a good backstory about this here: https://twitter.com/DanRose999/status/1292153445583974400?s=20
Fast forward to today. Facebook's market cap is over $750 BILLION. Verizon acquired Yahoo for $4 Billion in 2017.
