THE HISTORY OF FACEBOOK CAT100 910 THE BEGINNING

THE HISTORY OF FACEBOOK CAT-100 -910

THE BEGINNING • Originally released February 4, 2004 • Created by students at Harvard University • Original creators – Mark Zuckerberg and Eduardo Saverin

EARLY DAYS • Originally limited to Harvard University students • Gradually expanded to other universities in the Boston area • Available to everyone over the age of 13 in September 2006

FIRST INVESTMENTS • Initially funded solely by Mark Zuckerberg and Eduardo Saverin • Peter Thiel made first large investment of $500, 000 in the summer of 2004 for 10. 2% of the company

GAINING CAPITAL • Accel Partners invest $12. 7 million in April of 2005, valuing the company at $98 million • Greylock Partners invest $27. 5 million in April 2006, valuing the company at $500 million

GROWTH EXPLOSION • In October 2007, Microsoft purchased a 1. 6% stake of Facebook for a whopping $240 million, valuing the company at $15 billion • In only three years Facebook grew from a dorm room at Harvard University to a company with an implied value of $15 billion

BECOMING PROFITABLE • Although Facebook had been a great success, it had failed to actually produce any positive cash outflows • This was simply because up until this point all available resources had been reinvested in the company • September 2009 was the first time that Facebook created a positive cash flow

PROFITS MAXIMIZED • 2011 was the first year that Facebook made more than $1 billion in profits • This came after the company’s revenue generated exploded to more than $3 billion

MERGERS • Since becoming profitable, Facebook has began to buy out many new start up companies • Facebook purchased Instagram for around $1 billion in cash and stock in 2012 • Facebook has also acquired Whats. App Inc for around $19 billion in 2014