jump to navigation

Zuckerberg’s Opportunity – The Silicon Valley Way – Be Extraordinary Create the Market Make Money; It’s All About the Founder May 20, 2008

Posted by John in Technology.
Tags: , ,
trackback

Kara Swisher writes a memo to Mark Zuckerberg about the possible scenarios facing Facebook. She references my post called Facebook IPO – It’s Microsoft Not The NASDAQ . I see this as an opportunity for Facebook. Recently Facebook has been hiring ‘quote seasoned executives’. Facebook’s future is in Mark’s hands – it’s all about the founder.

Silicon Valley has two kinds of companies: 1) build real long term value for employees, investors, and build a great culture, and 2) build a value proposition (venture backed) and sell making the venture capitalist rich and the founders rich. We haven’t seen the kind of company like HP, Apple, or Google for some time (obviously Google is most recent). We have seen tons of companies sell out.

What makes a great company? The Founder and the founding team – Bill and Dave; Steve Jobs, Sergey and Larry; Facebook is stuck in the middle here. Strong founders with passion and drive to build a long term viable company and a cast of characters with ‘seasoned experience’. What’s more important seasoned execs or young and hungry founder led teams?.

In the final analysis it’s all about the founders. When founders get replaced the companies usually die. Why? Because Founders know best.. Founders see things others don’t. Founders can do deals, hire employees, lead people, create products, and do things differently. Founders are extraordinary people. Mark is one of those founders. He’s done amazing things at Facebook. The question is what does he do next.

The Silicon Valley Way is to build great companies, create markets, AND, create wealth for stakeholders (including employees – they don’t have employeess ‘resting and vesting’). Mark as CEO of Facebook has an opportunity now. He is at an inflection point. The same inflection point Bill Gates had when he had to negotiate his way around the big IBM monopoly to get a ‘killer’ license deal for DOS. Remember Google when they did something no one thought was possible – they ran their IPO as an auction and create dual classes of stock. Why? Because the founders were extraordinary.

My advice to Mark – do something extraordinary – stop the PR Bull; Make a strong move in this market – Be Extraordinary.

Microsoft needs you and you need Microsoft – If that doesn’t work substitute Google for Microsoft.

Mark: you are in the drivers seat. Take the cash and structure something extraordinary. Remember going public isn’t the dream job – shareholder bickering, filings, tons of BS.

This is an extraordinary situation in a time in history where conventional wisdom is irrelevant.

UPDATE: NY Times DealBook has a great followup post to my post Zuckerberg Opportunity. The professor Steven Davidoff pens a detailed post around some of the tactical challenges around the Zuckerberg Opportunity

Comments»

1. Andrew Galasetti - May 20, 2008

I was just thinking this morning about what might lie ahead for Facebook. Mark has an huge opportunity and needs to do something BIG to live up to all the hype. I think he and FB can do it, but they shouldn’t wait any longer.

-Andrew

2. John Furrier - May 20, 2008

Andrew,
I think that this is a defining moment for Mark Zuckerberg. He has to be crafty, smart, and practical. He really needs to think about competitive strategy for his vision then mobilize his employees. All the best leaders have done this in tough markets and came out winners.

3. Robert Hinden - May 20, 2008

I think that this is one of the smartest things that I’ve seen on the blogs. The global capital markets are in the toilet. I think that if a young CEO can get billions in cash and billions in stock that is better than an IPO.

Excellent analysis John

4. mikey - May 21, 2008

Zuckerbert needs to take his head out of his ass. What is he thinking. He can’t win this one alone. Take the money but on his own terms.

I hope they don’t flameout

5. Zuckerberg Opportunity Part II - Silicon Valley Legacy at Risk? « Furrier.org - Business & Technology Blog - May 31, 2008

[…] doing a followup piece to my post called The Zuckerberg Opporunity. They are following up on my first post and story called The Zuckerberg Opportunity. That post was a followup on the story that I am tracking on Microsoft buying Facebook. The NY […]


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: