Facebook eats FriendFeed; Mark Zuckerberg is Charles Foster Kane

In a sign that Facebook's not happy with Twitter being the "pulse of the planet", it acquired rival social network FriendFeed today. Yes, Facebook gets all of the FriendFeed ex-Google employees. Bully for them. But what does it mean for a person like me who's on both sites? For the answer, I checked Friend Feed's blog.

Well, to the unaided eye nothing. But then everything. Here's my hypothesis: look for Facebook to morph into FriendFeed such that all of the content from your social networks will easily find their way into your Facebook profile. On Flickr and uploaded a new photo? You'll see it on Facebook. And you can already see your tweets on Facebook, but if you're on about 14 main sites like I am (and 34 in all) you can't see all of them on Facebook; look for that to change too. That's just my prediction, but one thing's clear: Facebook just bought itself "Citizen Kane-style", the best engineers around. This is the press release that one can see at Friend Feed:

PALO ALTO, CALIF.—August 10, 2009—Facebook today announced that it has agreed to acquire FriendFeed, the innovative service for sharing online. As part of the agreement, all FriendFeed employees will join Facebook and FriendFeed’s four founders will hold senior roles on Facebook’s engineering and product teams.

“Facebook and FriendFeed share a common vision of giving people tools to share and connect with their friends,” said Bret Taylor, a FriendFeed co-founder and, previously, the group product manager who launched Google Maps. “We can’t wait to join the team and bring many of the innovations we’ve developed at FriendFeed to Facebook’s 250 million users around the world.”

“As we spent time with Mark and his leadership team, we were impressed by the open, creative culture they’ve built and their desire to have us contribute to it,” said Paul Buchheit, another FriendFeed co-founder. Buchheit, the Google engineer behind Gmail and the originator of Google’s “Don’t be evil” motto, added, “It was immediately obvious to us how passionate Facebook’s engineers are about creating simple, ground-breaking ways for people to share, and we are extremely excited to join such a like-minded group.”

Taylor and Buchheit founded FriendFeed along with Jim Norris and Sanjeev Singh in October 2007 after all four played key roles at Google for products like Gmail and Google Maps. At FriendFeed, they’ve brought together a world-class team of engineers and designers.

“Since I first tried FriendFeed, I’ve admired their team for creating such a simple and elegant service for people to share information,” said Mark Zuckerberg, Facebook founder and CEO. “As this shows, our culture continues to make Facebook a place where the best engineers come to build things quickly that lots of people will use.”

FriendFeed is based in Mountain View, Calif. and has 12 employees. FriendFeed.com will continue to operate normally for the time being as the teams determine the longer term plans for the product.

Financial terms of the acquisition were not released.

Mark Zuckerberg is Charles Foster Kane



In the classic movie and one of my favorites "Citizen Kane" when Kane (played by the late Orson Wells) acquired a little known paper called "The Enquirer" it was far behind the rival Chronicle in circulation and the Chronicle had the best writers around. Six years later, Kane built the Enquirer's circulation and bought the Chronicle's writers and moved them to the Enquirer. That's essentially what Mark Zuckerberg, founder and CEO of Facebook has done; bring it the best talent. It's certainly an epic move because it's one that will boost Facebook's already lofty online presence.

Who's Facebook aiming after?

The popular view, advanced by TechCrunch because it's take and readership, is that Facebook got FriendFeed to go after Twitter, but legendary tech blogger Robert Scoble has a different view: he thinks its Google that's their target and has some great points, foremost is that Google does not have "real time search" and FriendFeed does.

What's real time search? It's an on-the-spot updating of your content. Check Robert's blog for an example of this now (just look on the right at the scrolling widget). It's a great way for searching for "who's chatting about what, now" unlike what was written years ago, which is what Google does today. Now, Facebook has an advantage over Google here in an area that Google considered a priority. Robert likes the move and so do I.

Facebook was down;; was it an Iranian government plot?

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YouTube, MySpace, Metacafe, Blip.tv, Sclipo and Viddler


I was just heading to Facebook to test a theory on profile settings for a friend when I noticed the page wasn't coming up. I got the famous "the connection to the server was reset while the page was loading" message, so I refreshed the screen and the same thing happened: nothing. Still I had to make sure it wasn't me, so I sent out a tweet on Twitter (see the video). @egratto responded experiencing the same problem. We're both located in California, but I'm in Georgia, so location wasn't the reason.

Facebook was down.

Facebook has about 175 million users so for that five to ten minutes of time communication stopped a lot of people were impacted, which leads to this question: Was it an Iranian government plot? I mean think about it. They want to get Twitter but maybe, just maybe someone over there tried to take down Facebook too?

Considering the historic importance of Twitter and Facebook in communicating what can be called the Iranian Revolution, having either system malfunction would really make the hard-liners happy. But it raises another question: have Twitter and Facebook now become too important to have just one of their kind? I'm guessing there's a redundant system somewhere for both, but is that the case?

We're entering a new era of World communications where what was once considered a hickup could now impact national security and personal freedom.


UPDATE: I checked further and determined that the message regarding the connection happens to some who try to use Facebook from the Mozilla Firefox browser, which I was using at the time, but not frequently. In other words its not an everyday happening. But that problem is generally related to internet connection problems; I had none and was on six different sites at the same time. But I can't yet confirm the use of that browser for anyone else at the time and it's never happened to me before.

Over at my YouTube page a viewer commented:

Facebook and Yahoo was down yesterday for me for an hour and I was told by my IP that they were having technical problems.

Just my luck I had spent a good amount of time writing a message when it failed. ARGH !

Also, I learned that CNET reported a similar problem last year, when Facebook was having what they called "outage issues" experienced by their editors in San Francisco, Boston and New York, so it's not something that's a one-time glitch but that it happened today on this important week in Iranian history is worth conversation and investigation.

Twitter Retains Fewer Users Than Facebook and MySpace? So?

 

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YouTube, MySpace, Metacafe, DailyMotion, Blip.tv, Stupid Videos, Sclipo and Viddler

I saw an interesting blog post today over at Webguild.org reporting that Twitter is "Doomed" (in fact the title is "Twitter Doomed") and I had to laugh. There have been any number of people explaining either why they don't use Twitter or predicting its demise. There's even a website-style blog called "Twitter Backlash". But back to the post that got my laugh banks engaged and this sentence:

Apparently more than 60 percent of Twitter users fail to return the following month and pre-Oprah more than 70 percent of Twitter users failed to return to the site according to David Martin, Vice President, Nielsen Online.

Apparently Nielsen believes it appropriate to lump in Twitter with social networks like Facebook, MySpace, and others, and that's the problem. Twitter's a micro-blogging environment much more than a social network and thus should not be compared to Facebook and MySpace. Facebook and MySpace have places for photos of whatever you're doing or a place for installing your favorite music to share with others. That's not what Twitter's designed to do. Thus comparing them is lumping Apples with Oranges.

Twitter, again, is for the act of "micro-blogging" or explaining something in less than 150 characters. That's a system that can be and has been incorporated into a social network like Facebook, but it's not a social network like MySpace and Facebook.

I think what's happening is because one can communicate with others on Twitter, or have "friends", it's viewed as a social network as opposed to something that allows social-networking.

Two different actions.

In Facebook I have various pages, I'm a "fan" of President Obama, and I can see my friends photos, attend events I'm invited to, and play games they invite me to engage in (when I have time).

I can't do any of that on Twitter.

So it should come as no surprise that Twitter has a lower retention rate than Facebook or MySpace. Hey, people like to learn about other people which is what we use Facebook and other networks for. (Personally, I swear by Linkedin which I use far far more than MySpace.)

I don't see Twitter as a competitor to Facebook, but as complementary to Facebook. My Tweets go from my Twitter page out to my followers then onto my Facebook page and for good measure migrate over to my FriendFeed page as well. And my blogs are hooked in the same way: Blog to Twitter to Facebook to FriendFeed. Hey, that horizontal subscription count can add up!

The reason Twitter has a lower retention rate is simple: there's less there. It's a great place for the rapid transfer of information but that's it and you have to use it to understand its value.

Alas, Twitter doesn't have the revealing voyeur factor, so unless someone comes up with an app to send Paris Hilton sex tape through Twitter, the retention rates always going to be less than for Facebook, and that's just fine with me. Twitter's going through a shake out period where everyone thinks they have to use it. It's not for everyone. Eventually, we'll get rid of the wanna bees and be left with a really engaged Twitterverse.

Hooray!

Zennie62.com - The Facebook Page

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Mark Zuckerberg: Facebook's Benevolent Dictator

Mark Zuckerberg is Facebook's Benevolent Dictator who says the social network is 176 million or the sixth largest nation in the World. Electing to preserve member privacy was him being nice. Suppose he didn't do it?

Obama's inauguration: sharing it on Twitter, Facebook, other sites - Inside Bay Area

More at Inside Bay Area: “Obama on Tuesday will not simply take the oath to become the 44th president of the United States. He will serve as both emcee and epicenter of the most socially networked moment in political history.
"This is a historic event and the way we'll experience it will be just as historic," says Erica Schaefer. In perfect Generation Y style, the 20-year-old San Jose State University junior will watch the televised version of the ceremony at a local live screening — but she'll also be outfitted in full social-media regalia.
"I'll have my BlackBerry and my mini-laptop, which will allow me to share my status online, and I'll probably be on Twitter following @BarackObama, and on my Facebook chat section where I can talk about it live with hundreds of friends at the same time.”

"Lost" Inauguration Hotel Reservations Prompt New Facebook Page

Are you one of those who had the presence of mind to make your inauguration reservations earlier this year, only to have recently gotten a call from a hotel representative stating that your well-earned hotel room was "lost" are undoubtedly irate -- but not alone. 

Such reports have spawned this new Facebook Page called "Hotels "Losing" Reservations for The Inauguration".   This is what it's creator reports:

Have any of you who may have booked hotel rooms in the DC area for the inauguration months and months ago, suddenly received a phonecall from the hotel informing you that due to some sort of "computer malfunction" you no longer have a room reserved?

This just happended to me yesterday, and I'm trying to find out if this is starting to happen to many supporters. As I'm sure you're all aware, they are estimating there will be well over a million people coming to DC for this inauguration, and hotels that weren't already booked solid jacked their rates to rape people. That's bad enough, but now...I'm trying to get a feel for whether they are also now starting to "lose" reservations for people who booked months ago at lower rates, so they can resell those rooms at the rape rates.

As you might imagine, I am RAGING over this. I booked 2 rooms (for 6 of us) at the Hilton Garden Inn, in Greenbelt, MD back on May 11th, before Obama even won the primary! I have email confirmations on my reservations. In addition, I called the hotel directly 2 days after the election to reconfirm verbally they still showed my reservation, which they did. And now....magically....they tell me that the reservation never made it from the Hilton central system into their property system. I've spoken with a friend of mine in the hospitality industry, and she assures me they are blowing smoke up my skirt.

So, while I continue to call the hotel every hour on the hour, demanding that the general manager do something to rectify this situtation, I am attempting to find anywhere to stay. I worked 2 years on this campaign, and I'm heartbroken at the prospect of not being able to attend this historic event. There truly are zero hotel vacancies within a 250 mile radius of DC. I've been searching house rental sites, but I'm not having any luck there either. I'm livid.

If any of you have reservations, I would HIGHLY recommend you contact your hotels and reconfirm that they really do show you with a room...and somehow get them to confirm that in blood.

If any of you are experiencing the same problem that I have, please let me know. I think if we discover this has turned into an epidemic, we need to somehow get this out as a major story in the MSM and on the web. I would think a story about grassroots supporters getting screwed by corporate hotel chains would be a story that journalists would love. At the very least, I need to find a way to make Hilton pay dearly for this.

Also....if anyone is aware of someone in the DC area who would be willing to rent their house to a group of 6 of us, please contact me.

If you have been screwed by your hotel, please contact me with your story. I do NOT want to let them get away with this.

PodTech: Tech Media Company That Got $7.5 Million Sold For $500,000

In what has to mark as a disappointing end to a company with a lot of promise, I learned that PodTech, the tech media company which publishes online and downloadable videos about new technology and at one point featured video bloggers like Robert Scoble and Irina Slutsky, and raised $7.5 million in 2006, sold for just $500,000.

That's right.

The main reason was a difference between the managers in determining where the company should place it's focus. Plus, it was losing the original talent. CEO John Furrier left the company last year. Robert Scoble gave this take at Friend Feed with a chime in by Furrier and others...:

I'm cool with telling the story. I just need a couple of glasses and wine and a lot of time to tell it first. Podtech was screwed up by a number of decisions. Everyone played a part, but I sure learned a lot about how a company can screw up big time. Major learnings for me? 1. Have a story. 2. Have everyone on board with that story. 3. If anyone goes off of that story, make sure they get on board immediately or fire them. PodTech did none of the three and I'm sorry for my part in not making the three happen - Robert Scoble

That's the cool thing about you, Scoble...you're human and admit it too! - Sean McGee

Not all ventures succeed though. How many 'fail' for those that succeed? It pays to take a pragmatic view. I think it's a hot market, and the impetus to succeed is high, eventually some will break - Mo Kargas

Other things I learned: 1. Make sure people are judged by the revenues they bring in. Those that bring in revenues should get to run the place. People who don't bring in revenues should get fewer and fewer responsibilities, not more and more. 2. Work ONLY for a leader who will make the tough decisions (see above). 3. Build a place where excellence is expected, allowed, and is enabled. 4. Fire idiots quickly (didn't happen at PodTech -- even if you count me as one of the idiots). - Robert Scoble
We get so much coverage of companies when they launch, when they're growing, etc. I'm hoping that someone writes an in-depth piece on what went wrong at PodTech so that entrepreneurs can learn from this. There is so much that you can learn from failures. - Mike Doeff

Other things I learned: 1. if your engineering team can't give a media team good measurements, the entire company is in trouble. Only things that are measured ever get improved. 2. When your stars aren't listened to the company is in trouble. 3. When your stars start leaving (Gillmor and Owyang left before I did) the company is in trouble. 4. Getting rid of the CEO, even if it's all his fault, won't help unless you replace him/her with someone who is visionary and who can fix #1,2,3. - Robert Scoble

Mike: I'm not going to be the one who writes that. Much of the worst stuff is too personal. Failures of companies often happen around failures at the leadership level. Telling why things failed means telling off investors, executives, and others (and even me). Not likely to happen because that'd mean burning bridges and I'm just not willing to do that. These people have too many friends. :-) - Robert Scoble

My vote is for assimilation into something bigger. They bought it to "right the wrongs" and flip it to someone else. Heck, at 500k, it's a bargain right now...IF things are cleaned up. - Bradley McSpinn

Brad: almost all of the talent left. What's left now is not much that's worth much. The revenues came because of our social media leadership. That's what Furrier really had in his hands. Owyang. Me. Cunningham. Jones. Gillmor. The rest of the stuff was a pipe dream that didn't lead anywhere, which is really why the company burned through $7 million (plus several million in revenues). - Robert Scoble

I am going to write an in depth post on this story. It's huge. There are many lessons. Scoble's view is from his perspective but there is a big picture that goes way beyond Scoble's view and that has to do with building a company from a zero stage. I've moved on from a year ago after I was forced out by the board. We made some mistakes but directionally correct. Sure if I had a mulligan things might be different but a business strategy, financing strategy, and team strategy are part of the story.. - John Furrier

john: I am looking forward to your post. - Robert Scoble

There are many lessons to learn that I'll post about. PodTech had a great chance and pioneered some of the best practices in social media. One thing that I'll talk about is the difference between self financed growth strategies and venture backed growth strategies. - John Furrier

Looking forward to your posts John. - Thomas Hawk

I'm looking at this from way on the outside. The value of my perspective is that I know nothing about internal management, visions, discussions, factions, or what have you. All I can say is that from afar, I never got any brand coherence from PodTech. Was it news? paid corporate marketing videos? analysis? community? There were some powerful personal brands--I still follow them in the PodTech diaspora--but it felt they never cohered into a PodTech identity. (That doesn't mean losing personal identity.) - Michael Markman

Michael: exactly. We never played together as a team. It is why entrepreneurs need different skills after they start their companies. It is not enough to sell people on a dream. You must coach your way to it too. - Robert Scoble

What's interesting to me and the sign of a real problem is to have $7.5 million and burn through it, then wind up with a company worth just $500K.

With all this, there are some who think Podcasting is failing, but there are many signs this is not true, including the success of shows like "Ask A Ninja" which pulls in money from sponsorship.

But overall, my personal feeling is that people are lazy and don't want to download anything if they don't have to. That's why I focused on online browser-based sim games like the Oakland Baseball Simworld, rather than downloadable ones.

In the end, it's eyeballs and not downloads that matter and pay, too.

SXSW - Sara Lacy Of Business Week Gets Hammered for Softballing Mark Zuckerberg

Sara Lacy's being described as having given an interview of Facebook CEO Mark Zuckerberg that was "flirtatiously awful" at SXSW. I usually don't hear about such matters on the blogsphere from SXSW in the past, so this one must have been a real toilet-dweller of a talk.

I'll go over to my friends Owen Thomas and Paul Boutin at Valleywag for the ulitmate take on all of this, since both were there while I'm here in Oakland playing host to my Mom, who's visiting. Owen agrees with the reviewers regarding the audience's behavior. Paul, who can turn a phrase with the best of them, wrote "if you really hated yesterday's big event, Austin attendees, blame yourselves. SXSW only gave you exactly what you wanted: A chance to relive Spring Break and the senior prom, but with you and your self-styled "geek" friends as the popular kids."

So just what happened? You can see it here, along with the audience reactions:



Just eyeballing it, it seems that Lacy was doing more talking than listening. It's as if Mark was the spectator.

Here's Sara's explaination of what happened:



According to Sara, the questions were a product of discussion by her and Mark, but she's taking the fall. Tisk. Well, this will all blow over in a few days, especially since bigger news like New York Governor Eliot Spitzer's alledged involvement in a prostitution ring is holding the Monday Zeitgeist space.

Facebook To Have Music To Rival MySpace - TechCrunch

TechCrunch reports that Facebook, Microsoft's newest company, is working on a MySpace-style music application.

Microsoft Buys 1.6 Percent Stake In Facebook - TechCrunch

Well, it a story of numbers and eyeballs equaling investment value. In this case, to the tune of a 1.6 percent stake that causes Facebook to be valued at $15 Billion.

The buyer of that portion of the company is Microsoft -- not Google -- and for $240 million. What Microsoft will do with Facebook is another guess. But for the present, Michael Arrington at TechCrunch liveblogged the press conference today. Here's the result:

Call Notes

Call is beginning at 2:07 pm

Viveck Varma, MS, Owen Van Natta, Facebook, Kevin Johnson, Facebook, Brandee Barker, Facebook are on the call.

Viveck is saying the press release below has minor errors and will be re-issued. We will update it as it becomes available. He’s actually reading the entire release to the call participants.

200,000 new users register for Facebook every day.

Microsoft ad deal was extended to 2011 early this year.

Owen and Kevin:

Owen is saying this investment will help Facebook grow. They have nearly 50 million active users. This alliance will help them create the best user experience.

Kevin - “this deal signals a major advertising syndication win for Microsoft.” This is a “win-win-win.”

Now taking questions


Q: How do you support valuation?

Vivech: Online advertising is $40b/year, will grow to $80b per year. Equity stake in facebook is a strong statement of confidence in MS’ ad platform and in facebook. If you look at FB growth and think that they will get to 200 million users in future, combine that with monetization opportunity along with modest rev/user/year, the valuation is supported.

Q: Signal a bigger partnership around other products?

A: Nothing specific, but the partners will be doing a lot more together over time.

Q: Why Microsoft over Google?

A: (Owen) We were fortunate to choose from partners. We have existing relationship with MS and we had the opportunity to expand it.

Q: Any new restrictions on platform developers?

A: No new restrictions

Q: (mine) Any other investors in this round?

A: No comment, not saying one way or the other (JMA note: this suggests there may be other investors even beyond existing ones).

Q: Will we see any reciprocity? Any FB apps integrated into any MS properties?

A: Not announcing anything right now.

Q: Josh Quitner - who else was interested in investing?

A: Not announcing anything.

Q: Why did MS only take a 1.6% stake? Does this money affect FB IPO plans?

A: No real answer. Investment was the best fit for both companies.

Q: Is this deal just for banner ads?

A: partnership extends across adcenter platform for MS, not disclosing anything around web search advertising. Deal does not include web search ads like Google/Myspace deal.

Q: Any minimum payment that is guaranteed under ad deal? If so, will it be disclosed?

A: Viveck is saying they are very pleased with current deal, but strategic deal, way collaborating together, equity position provides economic and strategic value of overall partnership. “We feel very good about the deal.” Owen is saying that they want to focus on innovation and user experience, and this deal allows them to do this.

Q: (Om Malik) What kind of performance on FB from previous ad efforts? What will FB use the money for?

A: Viveck: we continue to see monetization improve, many initiatives underway to drive it higher. We’re seeing great progress on deal so far. Won’t discuss specifics on click throughs, etc., both parties have agreed to keep that confidential. At a high level, both parties see monetization on an eCPM basis improve. Owen: We’ll use the capital to continue to fund innovation and growth; we plan to expand employee base dramatically next year to 700 employees; doubling user base every six months; international growth is very important.

Q: How did deal come together? Also, what kind of collaboration between two companies? How deep will it be?

A: Owen: we’ve been working with MS for over a year, constantly talking about evolving partnership. MS is doing a huge amount of building around adcenter.

MS is Facebook’s exclusive advertising partner, expanding from U.S. to global in today’s announcement.

Q: Does adcenter have access to profile data in serving ads?

A: user trust is core, as is providing highly relevant ads. want users to feel like trust is not violated in any way.

Call is ending at 2:38 pm PST.

Will Yahoo! Buy Facebook? TechCrunch Report Points To This Possibility

Michael Arrington over at TechCrunch has posted a great article on Bear Stearns "suggestion" (I take it as a demand) that Yahoo establish a social networking function. His article seems to point to aquistion of Facebook. It seems Yahoo!'s playing catch up in two major areas: social networking and videos. And given the emergence of "plug-in" applications like the one SBS uses for its social network, the hole Yahoo! has to dig itself out of is getting deeper still.

I personally think Yahoo! needs to come up with the a next-generation web portal format. I know what they should do, but they'd have to pay me to tell them.