Mark Zuckerberg's Billion Dollar FB Deal| Social Network

[00:00:00]Well, as CFO, I had set up some meetings with potential advertisers.

[00:00:04]>> Who paid for the trip?

[00:00:05]>> paid for out of the $1,000 account I had set up a few months earlier.

[00:00:08]>> At this point, your $1,000 was the only money that had been put into the company.

[00:00:12]>> Yes.

[00:00:13]>> How did you feel the meetings went?

[00:00:16]>> They went terribly.

[00:00:17]>> Why?

[00:00:18]>> Mark was asleep.

[00:00:19]>> I was not asleep.

[00:00:21]>> Can I rephrase my answer? I wish he'd been asleep.

[00:00:27]So, we're in 29 schools [music] now with over 75,000 members.

[00:00:31]>> People who go on the Facebook tend to stay on longer than almost any other website. Now, here's the most impressive statistic. 91% of people try once will come back. Now, if you allow me >> Excuse me one second. What sound is he making? Is that like a tisk?

[00:00:47]>> It wasn't a tisk.

[00:00:49]It was like a glottal stop.

[00:00:54]Almost a gag reflex. [music] >> Guys, what is this?

[00:00:59]>> There was one more meeting scheduled for the New York trip.

[00:01:02]>> Yes. It was a dinner. It was set up through my girlfriend at the time.

[00:01:05]>> Would you say that Mark was excited about this meeting?

[00:01:08]>> Yes.

[00:01:09]Very.

[00:01:11]>> They're not going to card us.

[00:01:12]>> They might.

[00:01:13]>> It'll be embarrassing.

[00:01:14]>> Tell him they're not going to card us.

[00:01:16]>> They're not going to card us.

[00:01:17]>> Mark, are you going to talk about ads again?

[00:01:19]>> Unless you're the Ballet Theater of Hartford, the purpose of a business is to make a profit. It isn't a business yet.

[00:01:24]>> That's That's tough for me cuz my job Never mind.

[00:01:31]>> He's 25 minutes late.

[00:01:33]>> He founded Napster when he was 19.

[00:01:35]>> He can be late.

[00:01:35]>> He's not a god.

[00:01:36]>> Well, what is he?

[00:01:37]>> He's 25 minutes late.

[00:01:39]>> I think we're just jealous.

[00:01:40]>> I honestly wasn't jealous.

[00:01:42]I was nervous.

[00:01:44]>> Why?

[00:01:44]>> Well, I didn't know him at all, but I had done a search and I'd asked around and he struck me as kind of a a wild card.

[00:01:55]>> Why?

[00:01:56]>> Crashed out of two pretty big internet companies in spectacular fashion. He's had a reputation with drugs.

[00:02:01]>> founded the companies.

[00:02:02]>> We don't need him.

[00:02:05]He's here.

[00:02:09]>> Oh, no. Third time.

[00:02:11]>> He does own a watch.

[00:02:13]>> Hey.

[00:02:15]>> I'm Sean Parker.

[00:02:16]>> you do?

[00:02:16]>> I must be at Wardo and Christy and Mark.

[00:02:19]>> Great to meet you.

[00:02:20]>> Great to meet you.

[00:02:21]>> You guys don't have anything in front of you.

[00:02:23]>> No.

[00:02:23]>> Tory.

[00:02:24]>> You look like >> Hey, baby boy.

[00:02:26]>> Can you pronounce some things?

[00:02:27]>> Lacquered pork with that ginger confit, tuna tartare, and the lobster claws that'll get us started.

[00:02:32]>> Christy.

[00:02:33]>> What do you like to drink?

[00:02:36]>> An appletini.

[00:02:37]>> Great.

[00:02:38]Four those.

[00:02:40]>> From that point on, it was a Seanathon.

[00:02:46]>> [music] >> The question was what did you talk about?

[00:03:06]>> Talk us through his episode with Napster.

[00:03:08]>> I didn't want to spend my 20s as a professional defendant.

[00:03:11]>> Who knew the music industry doesn't have a sense of humor?

[00:03:14]>> We tried to sell the company to pay the 35 million they said we owed them royalties, but I guess to them [music] that was a little like selling a stolen car to pay for the stolen gas. So, we said screw it.

[00:03:24]Declare >> bankrupt.

[00:03:25]>> You made a name for yourself.

[00:03:26]>> And you are dry.

[00:03:28]>> Tory.

[00:03:29]>> I'm no good.

[00:03:30]>> And then he went on to his second business venture, which was an online Rolodex that he got thrown out of by Kleiner Perkins Caufield & >> And I wanted to do it nice this time. I put on a tie and I shined my shoes, but nobody wants to take orders from a kid.

[00:03:42]So, let me tell you what happens to a 20-year-old at the top of a hot dot com.

[00:03:45]>> I'm not a psychiatrist, but >> I'm glad we've got that on the record.

[00:03:48]>> You're not a psychiatrist, but what?

[00:03:50]>> A psychiatrist would say that he was paranoid. They'll hire private detectives to follow you day and night.

[00:03:56]You're a target for high-priced escorts.

[00:03:59]I can't prove it, but I know they tap my phones. Whatever it is that's going to trip you up, you've done already.

[00:04:03]Private behavior is a relic of a time gone by. And if somehow, someway you've managed to live your life like the Dalai Lama, they'll make [ __ ] up because they don't want you. They want your idea. And they want you to say thank you while you Excuse me. Wipe your chin and walk away.

[00:04:18]Is that what happened to you?

[00:04:19]>> And >> delusional.

[00:04:21]>> Yes. But there'll be payback in case they brought down the record companies with Napster, and case will suffer for their sins, too.

[00:04:28]>> Sorry, you you didn't you didn't bring down the record companies. They won in court. Yeah.

[00:04:33]>> You want to buy a Tower Records at Waterloo?

[00:04:38]>> And he told story after story about life in Silicon Valley, and parties at Stanford, and down in LA, and friends who'd become millionaires, but mostly how Mark had to He had to come to California.

[00:04:51]And then he got around to the Facebook.

[00:04:54]So, >> tell me about your progress.

[00:04:56]>> Well, we're in 29 schools now. We got over 75,000 men.

[00:05:01]>> about the strategy you're using.

[00:05:02]>> Okay. [music] Our first target was Baylor in Texas, but Baylor already had a social network on campus, so instead of going right after them, we made a list of every school within 100 miles.

[00:05:10]>> Facebook on those campuses first.

[00:05:12]>> non-Baylor kids were seeing their friends on our site. We were It's called the little Bitcoin. That's smart, Mark.

[00:05:16]>> Oh, thanks. That was mine.

[00:05:17]>> Easy.

[00:05:17]>> Hey, you know what? Settle an argument for us. I say it's time to start making money from the Facebook, but Mark doesn't want to advertise. Who's right?

[00:05:25]>> Neither of you yet. The Facebook is cool. That's what it's got going for it.

[00:05:29]>> Yeah.

[00:05:29]>> You don't want to ruin it with ads because ads aren't cool.

[00:05:31]>> Exactly.

[00:05:32]>> It's like you're throwing the greatest party on campus and someone's saying it's got to be over by 11.

[00:05:36]>> That's exactly what it is.

[00:05:37]>> You don't even know what the thing is yet. How big it can get, how far it can go. This is no time to take your chips down. A million dollars isn't cool. You know what's cool? You.

[00:05:48]>> A billion dollars.

[00:05:54]That shut everybody up.

[00:05:55]>> And that's where you're headed. A billion dollar valuation.

[00:05:59]>> Unless you take bad advice, in which case you may as well have come up with a chain of very successful yogurt shops.

[00:06:04]When you go fishing, you can catch a lot of fish or you can catch a big fish.

[00:06:08]>> You ever walk into a guy's den and see a picture of him standing next to 14 trout?

[00:06:11]>> No, he's holding a 3,000 lb marlin.

[00:06:13]>> Yep, that's a good analogy.

[00:06:14]>> Okay, but we all know that marlins don't really weigh 3,000 lbs, right?

[00:06:17]>> Have you seen the big ones up close?

[00:06:18]>> No, I haven't, but I don't think the guy is holding a marlin the size of a Range Rover. That would be a really big fish and a very strong guy.

[00:06:24]>> Do you think we might be getting away from the point?

[00:06:26]>> I don't have a dog in this fight. I'm just a fan who came to say hi.

[00:06:30]>> He owned Mark after that dinner.

[00:06:33]He picked up the check. He told Mark they'd talk again soon and he was gone, but not before he made his biggest contribution to the company.

[00:06:43]>> Drop the "the". Just Facebook.

[00:06:46]>> It's cleaner.

[00:06:50]>> [ __ ] [music] >> Yeah.

[00:07:01]>> That's got to be some kind of land speed record for talking.

[00:07:04]>> You want to end the party at 11:00.

[00:07:07]I'm trying to pay for the party. There won't be a party unless it's cool.

[00:07:12]So, what do you think?

[00:07:13]>> Yeah, sure. Let's drop the "the".

[00:07:15]>> I meant to catching the marlin instead of the 14 trout.

[00:07:18]Doesn't that sound good?

[00:07:19]>> If you're a trout.

[00:07:21]>> I'm going to want to enter this into the record. Incorporation papers for Facebook, an LLC registered in Florida.

[00:07:27]Why Florida?

[00:07:28]>> It's where my family lives.

[00:07:29]>> And ask the respondent to stipulate that the articles of incorporation state the ownership as follows: 65% for Mark Zuckerberg, 30% for Eduardo Saverin, and 5% for Dustin Moskovitz.

[00:07:39]>> Yeah, we stipulate.

[00:07:40]>> And that was April 13th, 2004.

[00:07:42]>> You can mark it.

[00:07:43]>> You have anything here?

[00:07:44]>> Yes. Thank you. Mr. Saverin, have you ever done anything that might be considered legitimate grounds for termination?

[00:07:53]>> No.

[00:07:54]>> You never did anything to embarrass the company or even seriously jeopardize it?

[00:07:59]>> No.

[00:08:00]>> No?

[00:08:05]>> No.

[00:08:05]>> You were accused of animal cruelty.

[00:08:10]>> Wait.

[00:08:11]>> You weren't?

[00:08:12]>> Th- th- this is This is not happening.

[00:08:14]>> have here an article from the Crimson.

[00:08:16]>> Jesus Christ. I can't have this water.

[00:08:19]>> Oh, come on, man. This is [ __ ] This is another club playing a prank.

[00:08:24]I'd gotten into the Phoenix.

[00:08:26]I'd been accepted, and as part of my initiation, I had to, for 1 week, carry with me at all times and take care of a chicken.

[00:08:33]>> They identify you as one of the founders of Facebook, Junior Eduardo Saverin.

[00:08:37]>> I'm not the expert, but being connected to torturing animals is probably bad for business.

[00:08:41]>> I did not torture the chicken. I don't torture chickens.

[00:08:45]>> Are you crazy?

[00:08:46]>> No, and settle down, please. I have here an article from the Crimson.

[00:08:50]>> This is scathing.

[00:08:50]>> 956.

[00:08:51]>> I was having dinner in the Kirkland dining hall with Mark.

[00:08:55]>> And I had the chicken with me because I had to have the chicken with me at all times. This was college.

[00:08:59]>> Somebody's going to have to answer for this.

[00:09:01]>> 969.

[00:09:02]>> And the dining hall was serving chicken for dinner. So, I and I had to feed my chicken. So, I what I took little pieces of chicken and I gave it to to the chicken. Someone must have seen me because the next thing I knew I was being accused of forced cannibalism.

[00:09:15]I didn't know you couldn't do that. I dealt with the various animal rights groups. I dealt with the associate dean of the college. This was all resolved.

[00:09:24]>> 988.

[00:09:25]>> Someone from the Port or the Fly must have reported it. For all I know, it was the Winklevosses.

[00:09:29]>> All right.

[00:09:30]>> Let's just forget about it.

[00:09:31]>> absurd. I'm being accused of animal cruelty. It's better to to accused of necrophilia.

[00:09:36]>> It is better to be accused of necrophilia.

[00:09:37]>> to going to explain this to my father.

[00:09:39]I'm going to to this to everybody. I'm going to >> What is happening on that?

[00:09:43]>> my final coming up for post-war and contemporary art and I haven't been to class. I'm supposed to write about these four paintings.

[00:09:47]>> It's a Facebook page.

[00:09:48]>> Yeah. I opened it under an alias. I posted the paintings and asked people to comment. Every once in a while I hop on and stir the pot to get a good debate going.

[00:09:59]>> [music] [music]