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An initial public offering (IPO) or stock market launch, is the first sale of stock by a company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises. Many companies that undertake an IPO also request the assistance of an investment banking firm acting in the capacity of an underwriter to help them correctly assess the value of their shares, that is, the share price (IPO Initial Public Offerings, 2011).

History[link]

This section requires expansion.

In 1602, the Dutch East India Company was the first company in the world to issue stocks and bonds in an initial public offering.^[1]

Reasons for listing[link]

When a company lists its securities on a public exchange, the money paid by investors for the newly issued shares goes directly to the company (in contrast to a later trade of shares on the exchange, where the money passes between investors). An IPO, therefore, allows a company to tap a wide pool of investors to provide itself with capital for future growth, repayment of debt or working capital. A company selling common shares is never required to repay the capital to investors.

Once a company is listed, it is able to issue additional common shares via a secondary offering, thereby again providing itself with capital for expansion without incurring any debt. This ability to quickly raise large amounts of capital from the market is a key reason many companies seek to go public.

There are several benefits to being a public company, namely:

• Bolstering and diversifying equity base
• Enabling cheaper access to capital
• Exposure, prestige and public image
• Attracting and retaining better management and employees through liquid equity participation
• Facilitating acquisitions
• Creating multiple financing opportunities: equity, convertible debt, cheaper bank loans, etc.

Disadvantages of an IPO[link]

There are several disadvantages to completing an initial public offering, namely:

• Significant legal, accounting and marketing costs
• Ongoing requirement to disclose financial and business information
• Meaningful time, effort and attention required of senior management
• Risk that required funding will not be raised
• Public dissemination of information which may be useful to competitors, suppliers and customers.

Procedure[link]

IPOs generally involve one or more investment banks known as "underwriters". The company offering its shares, called the "issuer", enters a contract with a lead underwriter to sell its shares to the public. The underwriter then approaches investors with offers to sell these shares.

The sale (allocation and pricing) of shares in an IPO may take several forms. Common methods include:

• Best efforts contract
• Firm commitment contract
• All-or-none contract
• Bought deal

A large IPO is usually underwritten by a "syndicate" of investment banks led by one or more major investment banks (lead underwriter). Upon selling the shares, the underwriters keep a commission based on a percentage of the value of the shares sold (called the gross spread). Usually, the lead underwriters, i.e. the underwriters selling the largest proportions of the IPO, take the highest commissions—up to 8% in some cases.

Multinational IPOs may have many syndicates to deal with differing legal requirements in both the issuer's domestic market and other regions. For example, an issuer based in the E.U. may be represented by the main selling syndicate in its domestic market, Europe, in addition to separate syndicates or selling groups for US/Canada and for Asia. Usually, the lead underwriter in the main selling group is also the lead bank in the other selling groups.

Because of the wide array of legal requirements and because it is an expensive process, IPOs typically involve one or more law firms with major practices in securities law, such as the Magic Circle firms of London and the white shoe firms of New York City.

Public offerings are sold to both institutional investors and retail clients of underwriters. A licensed securities salesperson ( Registered Representative in the USA and Canada ) selling shares of a public offering to his clients is paid a commission from their dealer rather than their client. In cases where the salesperson is the client's advisor it is notable that the financial incentives of the advisor and client are not aligned.

In the US sales can only be made through a final prospectus cleared by the Securities and Exchange Commission.

Investment dealers will often initiate research coverage on companies so their Corporate Finance departments and retail divisions can attract and market new issues.

The issuer usually allows the underwriters an option to increase the size of the offering by up to 15% under certain circumstance known as the greenshoe or overallotment option.

Auction[link]

This unreferenced section requires citations to ensure verifiability.

A venture capitalist named Bill Hambrecht has attempted to devise a method that can reduce the inefficient process. He devised a way to issue shares through a Dutch auction as an attempt to minimize the extreme underpricing that underwriters were nurturing. Underwriters, however, have not taken to this strategy very well which is understandable given that auctions are threatening large fees otherwise payable. Though not the first company to use Dutch auction, Google is one established company that went public through the use of auction. Google's share price rose 17% in its first day of trading despite the auction method. Brokers close to the IPO report that the underwriters actively discouraged institutional investors from buying to reduce demand and send the initial price down. The resulting low share price was then used to "illustrate" that auctions generally don't work.

Perception of IPOs can be controversial. For those who view a successful IPO to be one that raises as much money as possible, the IPO was a total failure. For those who view a successful IPO from the kind of investors that eventually gained from the underpricing, the IPO was a complete success. It's important to note that different sets of investors bid in auctions versus the open market—more institutions bid, fewer private individuals bid. Google may be a special case, however, as many individual investors bought the stock based on long-term valuation shortly after it launched its IPO, driving it beyond institutional valuation.

Pricing of IPO[link]

The underpricing of initial public offerings (IPO) has been well documented in different markets (Ibbotson, 1975; Ritter 1984; Levis, 1990; McGuinness, 1992; Drucker and Puri, 2007). While issuers always try to maximize their issue proceeds, the underpricing of IPOs has constituted a serious anomaly in the literature of financial economics. Many financial economists have developed different models to explain the underpricing of IPOs. Some of the models explained it as a consequence of deliberate underpricing by issuers or their agents. In general, smaller issues are observed to be underpriced more than large ones (Ritter, 1984; Ritter, 1991; Levis, 1990).

Historically, some of IPOs both globally and in the United States have been underpriced. The effect of "initial underpricing" an IPO is to generate additional interest in the stock when it first becomes publicly traded. Through flipping, this can lead to significant gains for investors who have been allocated shares of the IPO at the offering price. However, underpricing an IPO results in "money left on the table"—lost capital that could have been raised for the company had the stock been offered at a higher price. One great example of all these factors at play was seen with theglobe.com IPO which helped fuel the IPO mania of the late 90's internet era. Underwritten by Bear Stearns on November 13, 1998, the stock had been priced at $9 per share, and famously jumped 1000% at the opening of trading all the way up to $97, before deflating and closing at $63 after large sell offs from institutions flipping the stock. Although the company did raise about $30 million from the offering it is estimated that with the level of demand for the offering and the volume of trading that took place the company might have left upwards of $200 million on the table.

The danger of overpricing is also an important consideration. If a stock is offered to the public at a higher price than the market will pay, the underwriters may have trouble meeting their commitments to sell shares. Even if they sell all of the issued shares, if the stock falls in value on the first day of trading, it may lose its marketability and hence even more of its value.

Underwriters, therefore, take many factors into consideration when pricing an IPO, and attempt to reach an offering price that is low enough to stimulate interest in the stock, but high enough to raise an adequate amount of capital for the company. The process of determining an optimal price usually involves the underwriters ("syndicate") arranging share purchase commitments from leading institutional investors.

On the other hand, some researchers (e.g. Geoffrey C., and C. Swift, 2009) believe that IPOs are not being under-priced deliberately by issuers and/or underwriters, but the price-rocketing phenomena on issuance days are due to investors' over-reaction (Friesen & Swift, 2009).

Some algorithms to determine underpricing: IPO Underpricing Algorithms

Issue price[link]

A company that is planning an IPO appoints lead managers to help it decide on an appropriate price at which the shares should be issued. There are two ways in which the price of an IPO can be determined: either the company, with the help of its lead managers, fixes a price (fixed price method) or the price is arrived at through the process of book building.

Note: Not all IPOs are eligible for delivery settlement through the DTC system, which would then either require the physical delivery of the stock certificates to the clearing agent bank's custodian, or a delivery versus payment (DVP) arrangement with the selling group brokerage firm.

Quiet period[link]

There are two time windows commonly referred to as "quiet periods" during an IPO's history. The first and the one linked above is the period of time following the filing of the company's S-1 but before SEC staff declare the registration statement effective. During this time, issuers, company insiders, analysts, and other parties are legally restricted in their ability to discuss or promote the upcoming IPO (U.S. Securities and Exchange Commission, 2005).

The other "quiet period" refers to a period of 40 calendar days following an IPO's first day of public trading. During this time, insiders and any underwriters involved in the IPO are restricted from issuing any earnings forecasts or research reports for the company. Regulatory changes enacted by the SEC as part of the Global Settlement enlarged the "quiet period" from 25 days to 40 days on July 9, 2002. When the quiet period is over, generally the underwriters will initiate research coverage on the firm. Additionally, the NASDAQ and NYSE have approved a rule mandating a 10-day quiet period after a Secondary Offering and a 15-day quiet period both before and after expiration of a "lock-up agreement" for a securities offering.

Stag profit[link]

Stag profit is a stock market term used to describe a situation before and immediately after a company's Initial public offering (or any new issue of shares). A stag is a party or individual who subscribes to the new issue expecting the price of the stock to rise immediately upon the start of trading. Thus, stag profit is the financial gain accumulated by the party or individual resulting from the value of the shares rising.

For example, one might expect a certain I.T. company to do particularly well and purchase a large volume of their stock or shares before flotation on the stock market. Once the price of the shares has risen to a satisfactory level the person will choose to sell their shares and make a stag profit.

Largest IPOs[link]

1. Agricultural Bank of China US$22.1 billion (2010)^[2]
2. Industrial and Commercial Bank of China US$21.9 billion (2006)^[3]
3. American International Assurance US$20.5 billion (2010)^[4]
4. Visa Inc. US$19.7 billion (2008)^[5]
5. General Motors US$18.15 billion (2010)^[6]
6. Facebook, Inc. US$16 billion (2012)^[7]

Value of IPOs[link]

The US last topped the IPO league tables in 2008; then east overtook west with China (Shanghai, Shenzhen and Hong Kong) raising $73 billion (almost double the amount of money raised on the New York Stock Exchange and Nasdaq combined) up to the end of November 2011. The Hong Kong Stock Exchange raised 30.9 billion in 2011 as the top course for the third year in a row, while New York raised 30.7 billion.^[8]

See also[link]

• Alternative public offering
• Direct public offering
• Equity carve-out
• Mergers and acquisitions (M&A)
• Private placement
• Public offering without listing
• Reverse IPO
• Seasoned equity offering
• SEC Form S-1 (Registration form for certain types of issuers)
• Secondary market offering
• Venture capital

References[link]

Further reading[link]

External links[link]

• Initial Public Offering (IPO) Definition and Calendar, Wikinvest
• How IPO works – HowStuff Works

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The Books were an American duo, formed in New York City in 1999, consisting of guitarist and vocalist Nick Zammuto and cellist Paul de Jong. Their releases typically incorporate samples of obscure sounds and speech.^[1][2] They have released three critically acclaimed albums on the German label Tomlab, and released their fourth studio album, The Way Out, on Temporary Residence Limited in July 2010.

History[link]

[edit] 1999–2002: Thought for Food

Zammuto and de Jong first met in New York City in 1999 as they shared the same apartment building.^[3] De Jong invited Zammuto to dinner at his apartment, where he played him some of his collection of audio and video samples, including a Shooby Taylor record.^[4] Zammuto said of their meeting that "we both kind of knew at that moment that we listened (to music) in interesting ways and had similar approaches to music."^[5] Soon after, they began playing what they considered to be pop music, in comparison to their own works, under the name The Books.^[5]

In 2000, The Books started work on what would become their début album Thought for Food.^[6] Zammuto and de Jong moved locations constantly during this time,^[6] recording in New York, Los Angeles, Boston, and finally in the basement of a hostel in North Carolina where Zammuto worked for a while after hiking the Appalachian Trail.^[5][7]

Thought for Food was released on October 22nd, 2002.^[8] Praised by critics for its distinctive sound,^[9] it featured extensive sampling from obscure sources coupled with mostly acoustic instrumentation.

[edit] 2002–2003: The Lemon of Pink

Shortly after the release of Thought for Food, the band relocated to North Adams, Massachusetts, near where Zammuto had graduated from Williams College in 1999, studying chemistry and visual arts.^[10] Zammuto and de Jong began the recording of The Lemon of Pink around this time. Anne Doerner, a guest vocalist on the album, said the process was much more arduous than the recording of Thought for Food, with Zammuto working on the album for five straight months.^[5]

The Lemon of Pink was released to critical acclaim^[11] on October 7th, 2003.^[12] It is similar in style to Thought for Food, but oriented more around vocals performed mostly by Anne Doerner.

[edit] 2003–2006: Lost and Safe, Music for a French Elevator, Prefuse 73 Reads The Books

In 2004, the French Ministry of Culture asked The Books to compose music for a new elevator in their building. The Books released a Mini CD of this work in 2006, under the name Music for a French Elevator and Other Short Format Oddities by the Books.^[13]

On April 5, 2005, The Books released their third studio album, Lost and Safe. Zammuto has a greater vocal presence in this album, and the album was criticized for this change of sound.^[14] Aside from this, Lost and Safe was well received by critics.^[15] Throughout early 2005, The Books collobarated with the electronica artist Prefuse 73. The Books appear on his album Surrounded by Silence ("Pagina Dos"), and the E.P. Prefuse 73 Reads the Books E.P. collects remixes of material sourced from The Books' albums.

Before starting a three-month^[16] tour of North America in April 2006, The Books had played only one concert,^[7] in October 2003 at a festival in Chicago, Illinois.^[17] Zammuto has expressed apprehensiveness towards touring, but says it is necessary to make a living, given his belief that people downloading The Books' music via file-sharing^[18] has put him under financial strain.

[edit] 2006–2012: Hiatus, The Way Out and break-up

Following the release of Music for a French Elevator, the band took a break from recording to tend to their new families, tour in support of their albums, and pursue some of their own projects, which included Zammuto scoring a feature documentary about the Biosphere 2.^[10]

In 2007, The Books released Play All, a DVD of thirteen music videos and three previously unreleased tracks.^[19] The Play All videos are composed of found footage transformed into a collage that matches their music. The Books often screen these videos during their live performances.^[20]

The Books toured heavily between 2005 and 2007, including two tours in Europe and two Canadian shows.^[6] In early 2009 The Books covered the Nick Drake song "Cello Song" in collaboration with José González for the Red Hot Organization's Dark Was the Night fund-raising album.^[21]

The Books began working on The Way Out in late 2008.^[22] Zammuto spoke of the album's New Age themes in an interview in April 2009, saying they took samples from self-help and hypnotherapy cassettes. When asked to describe the album, Zammuto said "You're getting verrry sleepy."^[3] On April 5, 2010, the duo announced that The Way Out would be released through Temporary Residence Limited in July.^[22] On April 27 Pitchfork Media began streaming the track "Beautiful People",^[23] which Zammuto described as "a three part christian harmony mixed with a sort of euro-disco-trash beat, an orchestra’s worth of sampled brass and lyrics about the twelfth root of two (my favorite irrational number), trigonometry and tangrams".^[24] The album was released on July 20.

The Books played the ATP New York 2010 music festival in Monticello, New York, in September 2010 and are currently touring North American tour with the Black Heart Procession. The band have been chosen by Portishead & ATP to perform at the ATP I'll Be Your Mirror festival that they will curate in July 2011 at London's Alexandra Palace.^[25]

In January of 2012, Nick Zammuto announced in an interview via Pitchfork Media that The Books were splitting up to focus on other projects.^[26]

On April 3rd 2012, Nick Zammuto released Zammuto, under the moniker Zammuto.

Musical style[link]

The Books are commonly cited by critics to be of a genre of their own,.^[27] Zammuto has described it as collage music.^[18] Paul de Jong described it as "the new folk music...[w]e make our own instruments, use our own libraries of sound bites while trying to create something universally human."^[28] Although they have said that their influences include Nirvana, David Bowie, Roxy Music as well as new wave and classical music, these do not show prominently in their music,^[29] though Zammuto was directly influenced by electronic musicians Squarepusher, Aphex Twin and Boards of Canada.^[30][31] The Books' music usually consists of acoustic instrumentation of folk melodies usually played on guitar, cello, banjo and more, combined with a diverse range of samples obtained from cassettes found in thrift stores,^[18] which are digitally processed and edited.^[5] They also rarely use a drum kit in recordings and performances, instead favouring inanimate objects like children's toys and filing cabinets, which are sampled and looped.^[29] Some observers contend that their music is aleatoric,^[32] but Zammuto has disagreed, saying the music is very tightly controlled.^[18]

Discography[link]

Studio albums[link]

• Thought for Food (2002)
• The Lemon of Pink (2003)
• Lost and Safe (2005)
• The Way Out (2010)

EP[link]

• Music for a French Elevator and Other Short Format Oddities by the Books (2006)

DVDs[link]

• Play All (2007)

References[link]

External links[link]

• Official website
• The Books on Myspace
• The Books discography at Discogs
• [1] Interview with The Books
• [2] Interview with Nick Zammuto about his new band and the break-up of The Books

Mark Zuckerberg
Mark Zuckerberg, 37th G8 summit (2011)
Born	Mark Elliot Zuckerberg (1984-05-14) May 14, 1984 (age 28)[1] White Plains, New York, U.S.
Residence	Palo Alto, California, U.S.[2]
Alma mater	Harvard University (Dropped out)
Occupation	Chairman and CEO of Facebook [3]
Years active	2004–present
Known for	Co-founding Facebook in 2004; world's youngest billionaire as of 2008[4]
Net worth	US$ 17.5 billion (2012)[5]
Spouse	Priscilla Chan, M.D. (m. 2012) «start: (2012)»"Marriage: Priscilla Chan, M.D. to Mark Zuckerberg" Location: (linkback:http://en-wiki.pop.wn.com/index.php/Mark_Zuckerberg)
Relatives	Randi, Donna and Arielle (sisters)
Awards	TIME Person of the Year 2010
Website
Facebook.com/MarkZuckerberg

Mark Elliot Zuckerberg (born May 14, 1984) is an American computer programmer and Internet entrepreneur. He is best known as one of four co-founders of the social networking site Facebook, of which he is chairman and chief executive.^[6]

Zuckerberg was born and raised in a Jewish household in New York state. While still in middle school in his early teens, he took up writing software programs as a hobby, beginning with BASIC, with help from his father. His father then hired a tutor to help his son develop his programming skills further. Zuckerberg's enjoyment in writing programs led him to developing computer games, writing a music player, and setting up a primitive home network he called "ZuckNet." His private tutor calls him a "prodigy." In high school he excelled in classic literature and science, while becoming proficient in four other languages. He was also captain of the school's fencing team.

He later enrolled in Harvard, majoring in computer science and sociology. In his sophomore year he wrote a program called Facemash as a "fun" project, letting students on the college's network vote on other students' photo attractiveness. It was shut down within days, but would become a template for his writing Facebook, a program he launched from his dormitory room. With the help of friends, including roommate Dustin Moskovitz, Facebook went national on other campuses, and they moved to Palo Alto, California. By 2010, the site had an estimated 500 million users worldwide. Zuckerberg and Facebook have since been involved in various legal disputes initiated by others who have claimed a share of the company's profits due to their help in setting it up. Zuckerberg is the largest individual shareholder with 28.4 percent of the common stock and controls 56.9 percent of the voting power.^[7] As of 2012^[update], his personal wealth was estimated at more than $19.1 billion, making him one of the world's youngest billionaires.^[8] Zuckerberg is one of the 30 richest people on Earth.

Zuckerberg was named four times in Time 100: in 2009 as one of the 100 influential people of the world, in 2010 as Time magazine's Person of the Year,^[9] in 2011^[10] and 2012, along with being one of the world's richest and most influential people.^[8][11] In 2010 a fictionalized account of Zuckerberg creating Facebook while in college and its later start-up phase was made into a movie dramatization, The Social Network.

Early life[link]

Zuckerberg was born in 1984 in White Plains, New York.^[12] He is the son of Karen (née Kempner), a psychiatrist, and Edward Zuckerberg, a dentist.^[13] He and his three sisters, Randi, Donna, and Arielle,^[2] were brought up in Dobbs Ferry, New York.^[2] Zuckerberg was raised Jewish, had his bar mitzvah when he turned 13,^[14][15] and has since described himself as an atheist.^{[15][16][17][18]}

At Ardsley High School, Zuckerberg had excelled in the classics before transferring to Phillips Exeter Academy in his junior year, where he won prizes in science (math, astronomy and physics) and classical studies (on his college application, Zuckerberg listed as non-English languages he could read and write: French, Hebrew, Latin, and ancient Greek) and was a fencing star and captain of the fencing team.^{[17][19][20][21]} In college, he was known for reciting lines from epic poems such as The Iliad.^[19]

Software developer[link]

Early years[link]

Zuckerberg began using computers and writing software as a 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.^[2]

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 prep school fencing team and earned a classics diploma. Napster co-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 Roman epic poem Aeneid, by Virgil, during a Facebook product conference.^[2]

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^[22] and received a rating of 3 out of 5 from PC Magazine.^[23] Microsoft and AOL tried to purchase Synapse and recruit Zuckerberg, but he chose instead to enroll at Harvard University in September 2002.

Harvard years[link]

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 as well as belonging to Alpha Epsilon Pi, a Jewish fraternity.^{[2][6][9][24]} In his sophomore year, he wrote a program he called CourseMatch, 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.^[25]

The site went up over a weekend, but by Monday morning the college shut it down because its popularity had overwhelmed Harvard's server and prevented students from accessing the Internet. 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".^[25]

Around the time of Facemash, however, students were requesting that the university develop an internal website that would include similar photos and contact details. 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."^[25]

Career[link]

Zuckerberg listening to President Barack H. Obama before a private meeting where Obama dined with technology business leaders in Woodside, California, February 17, 2011. (Also pictured, from left: Carol Bartz of Yahoo!, Art Levinson of Genentech, Steve Westly of The Westly Group, and Eric Schmidt of Google.)

Facebook[link]

Zuckerberg launched Facebook from his Harvard dormitory room on February 4, 2004.^[26][27] An earlier inspiration for Facebook may have come from Phillips Exeter Academy, the prep school from which Zuckerberg graduated in 2002. It published its own student directory, “The Photo Address Book,” 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.^[26]

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, Penn, Brown, and Yale, and then at other schools that had social contacts with Harvard.^{[28][29][30][31]}

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.^[32][33] 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.^[27]

He restated these same goals to Wired magazine in 2010: "The thing I really care about is the mission, making the world open."^[34] Earlier, in April 2009, Zuckerberg sought the advice of former Netscape CFO Peter Currie about financing strategies for Facebook.^[35]

On July 21, 2010, Zuckerberg reported that the company reached the 500 million-user mark.^[36] 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.^[34]

In 2010, Steven Levy, who authored the 1984 book Hackers: Heroes of the Computer Revolution, wrote that Zuckerberg "clearly thinks of himself as a hacker".^[37] Zuckerberg said that "it's OK to break things" "to make them better".^[37][38] Facebook instituted "hackathons" held every six to eight weeks where participants would have one night to conceive of and complete a project.^[37] The company provided music, food, and beer at the hackathons, and many Facebook staff members, including Zuckerberg, regularly attended.^[38] "The idea is that you can build something really good in a night", Zuckerberg told Levy. "And that's part of the personality of Facebook now ... It's definitely very core to my personality."^[37]

Vanity Fair magazine named Zuckerberg number 1 on its 2010 list of the Top 100 "most influential people of the Information Age".^[39] Zuckerberg ranked number 23 on the Vanity Fair 100 list in 2009.^[40] In 2010, Zuckerberg was chosen as number 16 in New Statesman's annual survey of the world's 50 most influential figures.^[41]

In a 2011 interview with PBS after the death of Steve Jobs, Zuckerberg said that Jobs had advised him on how to create a management team at Facebook that was "focused on building as high quality and good things as you are".^[42]

Wirehog[link]

A month after Facebook launched in February 2004, i2hub, another campus-only service, created by Wayne Chang, was launched. i2hub focused on peer-to-peer file sharing. At the time, both i2hub and Facebook were gaining the attention of the press and growing rapidly in users and publicity. In August 2004, Zuckerberg, Andrew McCollum, Adam D'Angelo, and Sean Parker launched a competing peer-to-peer file sharing service called Wirehog, a precursor to Facebook Platform applications.^[43][44]

Platform and Beacon[link]

Zuckerberg at World Economic Forum, Davos, Switzerland (January 2009)

On May 24, 2007, Zuckerberg announced Facebook Platform, a development platform for programmers to create social applications within Facebook. Within weeks, many applications had been built and some already had millions of users. It grew to more than 800,000 developers around the world building applications for Facebook Platform.

On November 6, 2007, Zuckerberg announced a new social advertising system called Beacon, which enabled people to share information with their Facebook friends based on their browsing activities on other sites. For example, eBay sellers could let friends know automatically what they have for sale via the Facebook news feed as they list items for sale. The program came under scrutiny because of privacy concerns from groups and individual users. Zuckerberg and Facebook failed to respond to the concerns quickly, and on December 5, 2007, Zuckerberg wrote a blog post on Facebook^[45] taking responsibility for the concerns about Beacon and offering an easier way for users to opt out of the service.

In 2007, Zuckerberg was named to the MIT Technology Review TR35 as one of the top 35 innovators in the world under the age of 35.^[46]

On July 23, 2008, Zuckerberg announced Facebook Connect, a version of Facebook Platform for users.

Legal controversies[link]

ConnectU lawsuits[link]

Harvard students Cameron Winklevoss, Tyler Winklevoss, and Divya Narendra accused Zuckerberg of intentionally making them believe he would help them build a social network called HarvardConnection.com (later called ConnectU).^[47] They filed a lawsuit in 2004 but it was dismissed on a technicality on March 28, 2007. It was refiled soon thereafter in federal court in Boston. Facebook counter sued in regards to Social Butterfly, a project put out by The Winklevoss Chang Group, an alleged partnership between ConnectU and i2hub. On June 25, 2008, the case settled and Facebook agreed to transfer over 1.2 million common shares and pay $20 million in cash.^[48]

In November 2007, confidential court documents were posted on the website of 02138, a magazine that catered to Harvard alumni. They included Zuckerberg's social security number, his parents' home address, and his girlfriend's address. Facebook filed to have the documents removed, but the judge ruled in favor of 02138.^[49]

Saverin lawsuit[link]

A lawsuit filed by Eduardo Saverin against Facebook and Zuckerberg was settled out of court. Though terms of the settlement were sealed, the company affirmed Saverin's title as co-founder of Facebook. Saverin signed a non-disclosure contract after the settlement.^[50][51]

Pakistan criminal investigation[link]

In June 2010, Pakistani Deputy Attorney General Muhammad Azhar Sidiqque launched a criminal investigation into Zuckerberg and Facebook co-founders Dustin Moskovitz and Chris Hughes after a "Draw Muhammad" contest was hosted on Facebook. The investigation also named the anonymous German woman who created the contest. Sidiqque asked the country's police to contact Interpol to have Zuckerberg and the three others arrested for blasphemy. On May 19, 2010, Facebook's website was temporarily blocked in Pakistan until Facebook removed the contest from its website at the end of May. Sidiqque also asked its UN representative to raise the issue with the United Nations General Assembly.^[52][53]

Paul Ceglia[link]

On June 30, 2010, Paul Ceglia, the owner of a wood pellet fuel company in Allegany County, upstate New York, filed a lawsuit against Zuckerberg, claiming 84% ownership of Facebook and seeking monetary damages. According to Ceglia, he and Zuckerberg signed a contract on April 28, 2003, that an initial fee of $1,000 entitled Ceglia to 50% of the website's revenue, as well as an additional 1% interest in the business per day after January 1, 2004, until website completion. Zuckerberg was developing other projects at the time, among which was Facemash, the predecessor of Facebook, but did not register the domain name thefacebook.com until January 1, 2004. Facebook management dismissed the lawsuit as "completely frivolous". Facebook spokesman Barry Schnitt told a reporter that Ceglia's counsel had unsuccessfully sought an out-of-court settlement.^[54]

Pursuant to the contract, Ceglia agreed to pay Zuckerberg $1,000 for StreetFax and $1,000 for PageBook. The contract also refers to The Face Book, a project that was to be completed by January 2004. Ceglia offered a receipt for $1,000, dated six months after the contract, to prove he paid Zuckerberg, but it was not the full amount due, and the contract did not specify what occurs in the event of a default.^[55]

In an interview with ABC World News, Zuckerberg stated he was confident he had never signed such an agreement. At the time, Zuckerberg worked for Ceglia as a code developer on a project named "StreetFax". Judge Thomas Brown issued a restraining order on all financial transfers concerning ownership of Facebook until further notice; in response, Facebook removed the case to federal court and asked that the state court injunction be dissolved. According to Facebook, the injunction would not affect their business and lacked any legal basis.^{[56][57][58][59][60][61]}

Depictions in media[link]

[edit] The Social Network

A movie based on Zuckerberg and the founding years of Facebook, The Social Network was released on October 1, 2010, and stars Jesse Eisenberg as Zuckerberg. After Zuckerberg was told about the film, he responded, "I just wished that nobody made a movie of me while I was still alive."^[62] Also, after the film's script was leaked on the Internet and it was apparent that the film would not portray Zuckerberg in a wholly positive light, he stated that he wanted to establish himself as a "good guy".^[63] The film is based on the book The Accidental Billionaires by Ben Mezrich, which the book's publicist once described as "big juicy fun" rather than "reportage".^[64] The film's screenwriter Aaron Sorkin told New York magazine, "I don't want my fidelity to be to the truth; I want it to be to storytelling", adding, "What is the big deal about accuracy purely for accuracy's sake, and can we not have the true be the enemy of the good?"^[65]

Upon winning the Golden Globes award for Best Picture on January 16, 2011, producer Scott Rudin thanked Facebook and Zuckerberg "for his willingness to allow us to use his life and work as a metaphor through which to tell a story about communication and the way we relate to each other.”^[66] Sorkin, who won for Best Screenplay, retracted some of the impressions given in his script:^[67]

"I wanted to say to Mark Zuckerberg tonight, if you're watching, Rooney Mara's character makes a prediction at the beginning of the movie. She was wrong. You turned out to be a great entrepreneur, a visionary, and an incredible altruist."

On January 29, 2011, Zuckerberg made a surprise guest appearance on Saturday Night Live, which was being hosted by Jesse Eisenberg. They both said it was the first time they ever met.^[68] Eisenberg asked Zuckerberg, who had been critical of his portrayal by the film, what he thought of the movie. Zuckerberg replied, "It was interesting."^[69] In a subsequent interview about their meeting, Eisenberg explains that he was "nervous to meet him, because I had spent now, a year and a half thinking about him ..." He adds, "Mark has been so gracious about something that’s really so uncomfortable ... The fact that he would do SNL and make fun of the situation is so sweet and so generous. It’s the best possible way to handle something that, I think, could otherwise be very uncomfortable."^[70][71]

Disputed accuracy[link]

Jeff Jarvis, author of the book Public Parts, interviewed Zuckerberg and believes Sorkin has made too much of the story up. He states, "That's what the internet is accused of doing, making stuff up, not caring about the facts."^[72]

According to David Kirkpatrick, former technology editor at Fortune magazine and author of The Facebook Effect:The Inside Story of the Company That Is Connecting the World, (2011),^[73] "the film is only "40% true ... he is not snide and sarcastic in a cruel way, the way Zuckerberg is played in the movie." He says that "a lot of the factual incidents are accurate, but many are distorted and the overall impression is false", and concludes that primarily "his motivations were to try and come up with a new way to share information on the internet".^[72]

Although the film portrays Zuckerberg's creation of Facebook in order to elevate his stature after not getting into any of the elite final clubs at Harvard, Zuckerberg himself said he had no interest in joining the final clubs.^[2] Kirkpatrick agrees that the impression implied by the film is "false".^[72]

Karel Baloun, a former senior engineer at Facebook, notes that the "image of Zuckerberg as a socially inept nerd is overstated ... It is fiction ..." He likewise dismisses the film's assertion that he "would deliberately betray a friend".^[72]

Other depictions[link]

Zuckerberg voiced himself on an episode of The Simpsons, "Loan-a Lisa", which first aired on October 3, 2010. In the episode, Lisa Simpson and her friend Nelson encounter Zuckerberg at an entrepreneurs' convention. Zuckerberg tells Lisa that she does not need to graduate from college to be wildly successful, referencing Bill Gates and Richard Branson as examples.^[74]

On October 9, 2010, Saturday Night Live lampooned Zuckerberg and Facebook.^[75] Andy Samberg played Zuckerberg. The real Zuckerberg was reported to have been amused: "I thought this was funny."^[76]

Stephen Colbert awarded a "Medal of Fear" to Zuckerberg at the Rally to Restore Sanity and/or Fear on October 30, 2010, "because he values his privacy much more than he values yours".^[77]

Use of other social networks[link]

Zuckerberg created an account with Google+ soon after the social network was unveiled, saying he sees it as a "validation for his vision" of online social networking.^[78] By July 2011, Zuckerberg had become the most followed user on Google+, outranking Google co-founders Larry Page and Sergey Brin.^[79] As of March 6, 2012, his ranking has dropped to 184 on the service, behind Page and Brin.^[80] His public profile is minimal with one photo and a bio that reads "I make things".^[81]

Zuckerberg has maintained a private account on Twitter under the username "zuck", though in 2009 he revealed that the public account "finkd" also belonged to him.^[82]

Philanthropy[link]

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".^[34]

Zuckerberg founded the Start-up: Education foundation.^[83][84] 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.^[85][86] 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.^[87][88] 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."^[87] 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.^[87]

On December 9, 2010, Zuckerberg, Bill Gates, and investor Warren Buffett signed a promise they called the "Giving Pledge", in which they promised to donate to charity at least half of their wealth over the course of time, and invited others among the wealthy to donate 50% or more of their wealth to charity.^[89][90][91]

Personal life[link]

At a party put on by his fraternity during his sophomore year, Zuckerberg met Priscilla Chan, a fellow student who he began dating in 2003. Chan is of Chinese descent, was born in Braintree, Massachusetts, a suburb of Boston, and is a 2003 graduate of Quincy High School.^[92][93] In September 2010, Zuckerberg invited Chan, by then a medical student at the University of California, San Francisco,^[94] to move into his rented Palo Alto house.^[2][95] Zuckerberg studied Mandarin Chinese in preparation for the couple's visit to the People's Republic of China in December 2010.^[96][97]

On Zuckerberg's Facebook page, he listed his personal interests as "openness, making things that help people connect and share what's important to them, revolutions, information flow, minimalism".^[98] Zuckerberg sees blue best because of red–green colorblindness; blue is also Facebook's dominant color.^[99]

On May 19, 2012, Zuckerberg and Chan married in Zuckerberg's backyard in a celebration also marking her graduation from medical school.^{[100][101][102]} Chan has a medical degree, and, according to some sources, is planning to begin interning and residencing towards becoming a pediatrician in 2012 or is a pediatrician currently.^{[103][104][105][106]}

References[link]