This document provides details about Mark Zuckerberg and the founding and evolution of Facebook. It describes how Zuckerberg created early programs like Zucknet and Synapse before attending Harvard. At Harvard, he created Facemash and then Facebook. The Winklevoss brothers had asked Zuckerberg to help build their social network HarvardConnection but he instead used their ideas to create Facebook. This led to lawsuits from the Winklevoss brothers and Eduardo Saverin, who was an early investor in Facebook but later had his shares diluted. Sean Parker helped promote Facebook and Peter Thiel provided initial funding. Facebook grew rapidly and had conflicts between its founders in its early stages.

1. YOU DON’T
GET 500
MILLION
FRIENDS
WITHOUT
MAKING A
FEW
ENEMIES

2. Developed a
messaging program
named Zucknet
using Atari BASIC
Created an app for
recognizing taste
for music named
Synapse uploaded
it for free
After graduating
from Philips Exeter
Academy he
enrolled in Harvard
university in 2003
Zuckerberg earned
the reputation of
programming
prodigy
Developed
Facemash

3. •Zuckerberg started Facemash on a whim in his dorm room late at
night and he obtained the content by programatically scrapping
Harvard house websites.
•Facemash presented the user with two randomly selected pictures of
Harvard students and then let the user vote on which one was hotter.
•Though the site was tasteless it created a reputation for him.
EVOLUTION OF FACEBOOK

4. •Cameron Winklevoss, Tyler Winklevoss and Divya Narendra,
the three conceived the idea of a social network for Harvard
students named HarvardConnection.
•They approached Mark Zuckerberg to join the
HarvardConnection team.
•During the meeting, Zuckerberg allegedly entered into an oral
contract with Narendra and the Winklevosses and became a
partner in HarvardConnection.
•He was given the private server location and password for the
unfinished HarvardConnection website and code with the
understanding that he would finish the programming
necessary for launch.

5. The week has been pretty busy
thus far, so I haven't gotten a
chance to do much work on the
site or even think about it really, so
I think it's probably best to
postpone meeting until we have
more to discuss. I'm also really
busy tomorrow so I don't think I'd
be able to meet then anyway.
I read over all the stuff you
sent and it seems like it
shouldn't take too long to
implement, so we can talk
about that after I get all
the basic functionality up
tomorrow night.
I put together one of the two
registration pages so I have
everything working on my
system now. I'll keep you
posted as I patch stuff up and
it starts to become
completely functional.
Sorry I was
unreachable
tonight. I just
got about
three of your
missed calls. I
was working
on a problem
set
Sorry I have not been
reachable for the past
few days. I've basically
been in the lab the
whole time working
on a cs problem set
which I'm still not
finished with.

6. But rather then working on ConnectU, he
was working on a project of his own.
On February 4, 2004, Zuckerberg
launchedthefacebook.com, a social
network for Harvard students, designed to
expand to other schools around the
country.

7. WINKLEVOSS AND NARENDRA
SETTLEMENT
• A settlement agreement for both cases was reached valued
at $65 million.
• Even after the settlement they felt that they have been
underpaid and deserved much more.
• In March 2008 they filed another case and the case was
finally settled where Facebook acquired ConnectU’s assets in
exchange of 0.22% stake to each of them and $20 million in
cash.

8. SEAN PARKER
• Sean Parker started Napster when he was 19.
• He was the first President of Facebook.
• Bought the first funding for Facebook of $5,00,000 through Peter Thiel of
Paypal.
• Removed from Facebook due to his “Party-boy” ways

9. •Eduardo Saverin provided the initial investment needed to launch the site and
managed the business side of the operation.
•Invested $1,000 in TheFacebook.com in return of 30% stake in the company.
•Soon after, they both agreed to invest an additional $10,000 each to cover the
quickly growing server costs.
•A few months later, Eduardo opened a bank account to cover business
expenses and to deposit advertising revenues, at which point he added an
additional $18,000 of his own money.
•TheFacebook.com was registered as a LLC under Florida law
•In the summer of 2004, Zuckerberg and Dustin Moskovitz decided to move to
Palo Alto, Silicon Valley.
EDUARDO SAVERIN

10. •Saverin, instead of joining them along, joined as an Intern with Lehman
Brothers in New York.
• Mark met Parker and he was soon on-board.
• Parker got the first funding for Facebook of $500,000 from PayPal
founder Peter Thiel.
•Saverin was asked to work on 3 things:
Set up the company
Get funding
Make a business model
•Saverin couldn’t meet any of his commitments and instead he used
Facebook to run free ads of Joboozle, a side-project he had developed.

11. •Before funding Mark owned 65%, Saverin
owned 30% and Dustin owned 5%.
•Mark decided to reduce Saverin’s stake in the
Company by creating a new company, a
Delaware corporation, to acquire the old
company and then distribute new shares in
the new company to everybody but Saverin.
•After funding Saverin’s shared were diluted down to 0.3%.
•Lawsuit helped him get 5% stake in Facebook and also his name was
reincorporated as Co-founder. Saverin signed a non-disclosure contract after
the settlement.
•Currently owns a little less than 2% stake.
•Saverin renounced his US Citizenship to avoid almost $700 million of
Capital Gains tax that he earned from the Facebook IPO.

12. Saverin's title as co-founder of
Facebook was restored.

13. A process that begins when one party
perceives that another party has negatively
affected, or is about to negatively affect,
something that the first party cares about
CONFLICT
That point in an ongoing activity when an interaction “crosses over” to become an
interparty conflict.

14. STAGES OF CONFLICT
Stage 1 - STRUCTURE :- Dependence or Interdependence of Parties
Winklevoss Brothers approached Mark Zuckerberg to create a social
networking site for Harvard students.
There was an intention for collaboration

15. Stage 2 – Perceived Conflict:- Awareness by one or
more parties of the existence of conditions that create
opportunities for conflict to arise
• Feeling of betrayal by Winklevoss Brothers
• According to Zuckerberg, Facebook was his idea
Stage 3 – Intentions:-
Competing – Both parties attempted to satisfy
their own interests.

16. Stage 4 :- Behaviour
Conflict is open and can be observed.
Most difficult.
Overt questioning or challenging of others
Stage 5 :- Outcome
Resolution to, or dissolution of, the problem.
Conflict Resolution Technique used - Problem
solving .

17. TYPES OF CONFLICT
• Task Conflict
– Conflicts over content and goals of the work
• Saverin wanted ads on Facebook but Mark didn’t
• Relationship Conflict
– Conflict based on interpersonal relationships
• Conflict between Saverin and Parker
• Process Conflict
– Conflict over how work gets done
• When Saverin couldn’t perform the duties assigned to him there was a
Process Conflict

18. NEGOTIATION
Open process for two parties to find an
acceptable solution to a complicated conflict
• Distributive Bargaining:-
Negotiation that seeks to divide up a fixed
amount of resources; a win-lose situation

19. Extremely Ambitious
Arrogant
Workaholic
Highly Experimental
Visionary
Enjoys high stakes

20. POWER
He exhibits both Legitimate power and Expert Power and also using an
Autocratic style in his way of leading
Mark uses rational persuasion in order to get what he wants out of the
group. This means that his use of hard facts and logical arguments show the
target co-worker or partner that his request or idea is worthwhile
POLITICS
Mark Zuckerberg deservedly gets a lot of credit for establishing a “Done is
better than perfect” mentality at Facebook.
There is one important characteristic that most successful people share: the
ability to remain extremely focused. Apparently Zuckerberg's success can be
partially attributed to this.