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	<title>AllThingsD &#187; Winklevoss</title>
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		<title>Accounting for the Actions of the Winklevii and Virtual Goods Are Both Difficult to Do (Video)</title>
		<link>http://allthingsd.com/20110626/accounting-for-the-actions-of-the-winklevoss-twins-and-virtual-goods-are-both-hard-to-do-video/</link>
		<comments>http://allthingsd.com/20110626/accounting-for-the-actions-of-the-winklevoss-twins-and-virtual-goods-are-both-hard-to-do-video/#comments</comments>
		<pubDate>Sun, 26 Jun 2011 14:45:14 +0000</pubDate>
		<dc:creator>Tricia Duryee</dc:creator>
				<category><![CDATA[Commerce]]></category>
		<category><![CDATA[News]]></category>
		<category><![CDATA[Social]]></category>
		<category><![CDATA[accounting practices]]></category>
		<category><![CDATA[Facebook]]></category>
		<category><![CDATA[IPO]]></category>
		<category><![CDATA[Liz Gannes]]></category>
		<category><![CDATA[Mark Zuckerberg]]></category>
		<category><![CDATA[revenue]]></category>
		<category><![CDATA[social games]]></category>
		<category><![CDATA[virtual goods]]></category>
		<category><![CDATA[Winklevoss]]></category>
		<category><![CDATA[Zynga]]></category>

		<guid isPermaLink="false">http://allthingsd.com/?p=90982</guid>
		<description><![CDATA[On Friday's digits, AllThingsD's Liz Gannes and I discussed two difficult subjects both having to do with Facebook: Why the Winklevii won't give up on suing the company and why it's so difficult to account for virtual goods inside social games.]]></description>
			<content:encoded><![CDATA[<p>On Friday&#8217;s <a href="http://online.wsj.com/video-center">Digits</a>, <strong>AllThingsD&#8217;s</strong> Liz Gannes and I discussed two difficult subjects both having to do with Facebook: Why the Winklevoss twins won&#8217;t give up on suing the company and why it&#8217;s so difficult to account for virtual goods inside social games.</p>
<p>Liz kicked off the show by talking about how the twins dropped their fraud suit against Facebook in favor of a new one <a href="http://allthingsd.com/20110624/the-winklevii-didnt-actually-give-up-they-just-switched-to-another-lawsuit/">that accused the company</a> over whether it  &#8221;intentionally or inadvertently suppressed evidence.&#8221;</p>
<p>Specifically at issue are a number of instant messages written by a young Mark Zuckerberg, which were too explicit for Liz to mention on air.</p>
<p>Later, I chatted about how <a href="http://allthingsd.com/20110624/what-zynga-will-look-like-as-a-public-company/">the laws are not yet clear on how companies should record revenue from virtual goods</a>, leaving them to come up with their own best practices. Meanwhile, Zynga will likely become the first example as it is expected to go public any week now.</p>
<p>Here are the clips:</p>
<p><div class="video-wsj"><object width="640" height="360"><param name="movie" value="http://s.wsj.net/media/swf/microPlayer.swf"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><param name="flashvars" value="videoGUID=B60C6A78-49B5-4E97-B3B1-8161D771DC7E&playerid=4001&plyMediaEnabled=1&configURL=http://m.wsj.net/video-players/&autoStart=false" base="http://s.wsj.net/media/swf/"name="microflashPlayer"></param><embed src="http://s.wsj.net/media/swf/microPlayer.swf" bgcolor="#FFFFFF" flashVars="videoGUID={B60C6A78-49B5-4E97-B3B1-8161D771DC7E}&playerid=4001&plyMediaEnabled=1&configURL=http://m.wsj.net/video-players/&autoStart=false" base="http://s.wsj.net/media/swf/" name="microflashPlayer" width="640" height="360" seamlesstabbing="false" type="application/x-shockwave-flash" swLiveConnect="true" pluginspage="http://www.macromedia.com/shockwave/download/index.cgi?P1_Prod_Version=ShockwaveFlash"></embed><br />[ See post to watch video ]</div></object></p>
<p><div class="video-wsj"><object width="640" height="360"><param name="movie" value="http://s.wsj.net/media/swf/microPlayer.swf"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><param name="flashvars" value="videoGUID=A4FA129F-6E7D-4B9D-876A-5E2B884C8897&playerid=4001&plyMediaEnabled=1&configURL=http://m.wsj.net/video-players/&autoStart=false" base="http://s.wsj.net/media/swf/"name="microflashPlayer"></param><embed src="http://s.wsj.net/media/swf/microPlayer.swf" bgcolor="#FFFFFF" flashVars="videoGUID={A4FA129F-6E7D-4B9D-876A-5E2B884C8897}&playerid=4001&plyMediaEnabled=1&configURL=http://m.wsj.net/video-players/&autoStart=false" base="http://s.wsj.net/media/swf/" name="microflashPlayer" width="640" height="360" seamlesstabbing="false" type="application/x-shockwave-flash" swLiveConnect="true" pluginspage="http://www.macromedia.com/shockwave/download/index.cgi?P1_Prod_Version=ShockwaveFlash"></embed><br />[ See post to watch video ]</div></object></p>
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			<wfw:commentRss>http://allthingsd.com/20110626/accounting-for-the-actions-of-the-winklevoss-twins-and-virtual-goods-are-both-hard-to-do-video/feed/</wfw:commentRss>
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		<title>Winklevii Keep the Dream Alive With Media Blitz</title>
		<link>http://allthingsd.com/20110209/videos-the-winklevii-media-blitz/</link>
		<comments>http://allthingsd.com/20110209/videos-the-winklevii-media-blitz/#comments</comments>
		<pubDate>Wed, 09 Feb 2011 08:00:08 +0000</pubDate>
		<dc:creator>Liz Gannes</dc:creator>
				<category><![CDATA[News]]></category>
		<category><![CDATA[Social]]></category>
		<category><![CDATA[appeal]]></category>
		<category><![CDATA[b-roll]]></category>
		<category><![CDATA[Cameron and Tyler Winklevoss]]></category>
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		<guid isPermaLink="false">http://networkeffect.allthingsd.com/?p=3379</guid>
		<description><![CDATA[Cameron and Tyler Winklevoss, who are waiting to see if an appeals court will invalidate their settlement with Facebook, flex their muscles and try to justify their use of the site.]]></description>
			<content:encoded><![CDATA[<p>Though Cameron and Tyler Winklevoss <a href="http://networkeffect.allthingsd.com/20110111/appeals-court-judges-seem-skeptical-of-winklevii-claims/">no-commented me and other reporters</a> in a San Francisco court last month, they can&#8217;t seem to stay away from bashing Mark Zuckerberg for long. The twins, who are waiting to hear if appeals judges will invalidate a previous settlement with Facebook, offered videos and TV interviews to multiple outlets, which posted them online Tuesday. It&#8217;s still the same old Mark-Zuckerberg-stole-our-idea stuff, plus some creative camera work. And hey, at least they&#8217;re not <a href="http://www.tmz.com/2011/02/07/mark-zuckerberg-restraining-order-facebook-social-network-santa-clara-county-stalker-letters-priscilla-chan/">outright stalking Zuckerberg</a> like some other people.</p>
<p>Here&#8217;s one from <a href="http://www.cnn.com/video/#/video/showbiz/2011/02/08/pmt.winklevoss.facebook.cnn?iref=videosearch">CNN</a>. The Winklevii tell Piers Morgan that it&#8217;s not ironic that they are now active Facebook users, despite their ongoing legal and moral crusades against the company. &#8220;Technically we&#8217;re using our idea&#8230;.It&#8217;s really our product and we&#8217;re the originators.&#8221; (The two grown men, somewhat oddly, make little effort to differentiate from each other, so I&#8217;ll just attribute those comments to both of them.)</p>
<p><object id="ep" classid="clsid:d27cdb6e-ae6d-11cf-96b8-444553540000" width="416" height="374" codebase="http://download.macromedia.com/pub/shockwave/cabs/flash/swflash.cab#version=6,0,40,0"><param name="allowfullscreen" value="true" /><param name="allowscriptaccess" value="always" /><param name="wmode" value="transparent" /><param name="bgcolor" value="#000000" /><param name="src" value="http://i.cdn.turner.com/cnn/.element/apps/cvp/3.0/swf/cnn_416x234_embed.swf?context=embed&amp;videoId=showbiz/2011/02/08/pmt.winklevoss.facebook.cnn" /><embed id="ep" type="application/x-shockwave-flash" width="416" height="374" src="http://i.cdn.turner.com/cnn/.element/apps/cvp/3.0/swf/cnn_416x234_embed.swf?context=embed&amp;videoId=showbiz/2011/02/08/pmt.winklevoss.facebook.cnn" bgcolor="#000000" wmode="transparent" allowscriptaccess="always" allowfullscreen="true"></embed></object></p>
<p>And here&#8217;s one from <a href="http://www.thedaily.com/page/2011/02/07/020811-news-winklevoss-part1-2-2/">the Daily</a>, which shot crazy amounts of creative B-roll of the Winklevosses&#8217; rippling muscles and chiseled jaws (they are Olympic rowers, after all). This is part one of a three-part series by the Daily&#8217;s Erin Ade, who discloses she&#8217;s a childhood friend of the Winklevii. Cameron and Tyler say they want to tell Zuckerberg to &#8220;grow up and admit to the world and yourself what you already know is true&#8230;because the moment you do that the chapter will be closed and you can move on as an individual.&#8221;</p>
<p><object classid="clsid:d27cdb6e-ae6d-11cf-96b8-444553540000" width="320" height="192.5" codebase="http://download.macromedia.com/pub/shockwave/cabs/flash/swflash.cab#version=6,0,40,0"><param name="allowFullScreen" value="true" /><param name="allowscriptaccess" value="always" /><param name="src" value="http://www.youtube.com/v/hl42Yj_eyuM?fs=1&amp;hl=en_US" /><param name="allowfullscreen" value="true" /><embed type="application/x-shockwave-flash" width="320" height="192.5" src="http://www.youtube.com/v/hl42Yj_eyuM?fs=1&amp;hl=en_US" allowscriptaccess="always" allowfullscreen="true"></embed></object></p>
<p>Please see the disclosure about Facebook in <a href="http://allthingsd.com/about/liz-gannes/ethics/">my ethics statement</a>.</p>
]]></content:encoded>
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		<title>Over Here, Winklevii! NetworkEffect Goes to Court.</title>
		<link>http://allthingsd.com/20110111/over-here-winklevii-aka-networkeffect-goes-to-court/</link>
		<comments>http://allthingsd.com/20110111/over-here-winklevii-aka-networkeffect-goes-to-court/#comments</comments>
		<pubDate>Tue, 11 Jan 2011 12:00:21 +0000</pubDate>
		<dc:creator>Liz Gannes</dc:creator>
				<category><![CDATA[News]]></category>
		<category><![CDATA[Social]]></category>
		<category><![CDATA[ConnectU]]></category>
		<category><![CDATA[Facebook]]></category>
		<category><![CDATA[Liz Gannes]]></category>
		<category><![CDATA[Mark Zuckerberg]]></category>
		<category><![CDATA[NetworkEffect]]></category>
		<category><![CDATA[The Social Network]]></category>
		<category><![CDATA[Winklevii]]></category>
		<category><![CDATA[Winklevoss]]></category>

		<guid isPermaLink="false">http://networkeffect.allthingsd.com/?p=2216</guid>
		<description><![CDATA[Today the NetworkEffect staff of one is packing up the MacBook Air and heading to the U.S. Court of Appeals for the Ninth Circuit for a scheduled hearing of "The Facebook, Inc. v. ConnectU, Inc."]]></description>
			<content:encoded><![CDATA[<p>Today the NetworkEffect staff of one is packing up the MacBook Air and heading to the <a href="http://www.ca9.uscourts.gov/">U.S. Court of Appeals for the Ninth Circuit</a> for a scheduled hearing of &#8220;The Facebook, Inc. v. ConnectU, Inc.&#8221; The latest action in the long-running case between former Harvard students Cameron and Tyler Winklevoss and their unofficial underclassman coder Mark Zuckerberg will be in a San Francisco courtroom, where the Winklevii are asking that a previous settlement be re-evaluated.</p>
<p><img class="alignright" title="Who'd You Rather?" src="http://kara.allthingsd.com/files/2010/10/wink.jpg" alt="" width="176" height="249" />In hopes of seeing some tall curly haired Olympic rowers and their legal posse in the flesh, I&#8217;ll be there bright and early, though the action may not commence until later in the day. The crew from Facebook will also be making an appearance, though we don&#8217;t know exactly who will show up.</p>
<p>The twin Winklevoss brothers&#8211;who have said their portrayal in the Hollywood blockbuster based on the founding of Facebook, &#8220;The Social Network,&#8221; <a href="http://www.reuters.com/article/idUSTRE69M2CV20101023">was accurate</a>&#8211;had <a href="http://www.nytimes.com/2010/12/31/business/31twins.html?_r=1">settled two years ago</a> with Facebook for $20 million in cash and $45 million in Facebook shares (worth approximately $150 million now). But they think Facebook purposely withheld the real value of the shares at the time. A reassessment would make their stake worth much more: <a href="http://www.businessinsider.com/the-winklevoss-twins-stake-in-facebook-is-now-worth-150-million-2011-1#comments">$608 million at the latest valuation</a>.</p>
<p>For an explainer on the latest ConnectU appeal, see this recent <a href="http://networkeffect.allthingsd.com/20101210/when-facebook-bought-connectu-from-the-winklevii-or-parsing-legal-filings-for-fun/">NetworkEffect parsing of a filing from Facebook</a> that effectively poked fun of the Winklevii:</p>
<blockquote class="memo"><p>The settlement came after closed-door professional mediation in February 2008. Facebook says it’s outraged that the Winklevii and their lawyers are bringing conversations from mediation back into the appeal, because all involved were sworn to confidentiality&#8230;</p>
<p>But after the settlement, ConnectU came back to the table asking for its share to be revalued. It had originally negotiated using a publicly reported valuation from when Microsoft invested in Facebook, rather than an internal valuation from around the same time that would have priced the shares much lower ($8.88 versus $35.90). A revaluation of the shares to a smaller amount would give the twins a larger stake in the company.</p></blockquote>
<p>If anything interesting happens in court, I&#8217;ll be sure to write about it here.</p>
<p><strong>Update: Here&#8217;s <a href="http://networkeffect.allthingsd.com/20110111/over-here-winklevii-aka-networkeffect-goes-to-court/">my report on the Winklevoss hearing</a>.<br />
</strong></p>
<p><em>Please see the disclosure about Facebook in <a href="http://allthingsd.com/about/liz-gannes/ethics/">my ethics statement</a>. </em></p>
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		<title>Déjà Vu: Facebook&#039;s Questionable Stock Hijinks Feels Like Winklevii 2.0</title>
		<link>http://allthingsd.com/20110104/facebooks-questionable-stock-hijinks-feels-like-winklevii-2-0/</link>
		<comments>http://allthingsd.com/20110104/facebooks-questionable-stock-hijinks-feels-like-winklevii-2-0/#comments</comments>
		<pubDate>Tue, 04 Jan 2011 19:00:38 +0000</pubDate>
		<dc:creator>Kara Swisher</dc:creator>
				<category><![CDATA[Media]]></category>
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		<guid isPermaLink="false">http://kara.allthingsd.com/?p=29772</guid>
		<description><![CDATA[CEO and co-founder Mark Zuckerberg’s clear intent to keep the lid on Facebook tight--with no disclosure about the details of the financial performance and other pertinent information a public offering would require be disclosed--is clearly becoming a nettlesome issue for the company.

But while that effort at preserving secrecy by staying private has resulted in little more than cute media guessing games about a possible IPO until now, the social networking giant's most recent machinations are too clever by a half.]]></description>
			<content:encoded><![CDATA[<p><a href="http://kara.allthingsd.com/files/2011/01/keep_out_sign.jpeg"><img src="http://kara.allthingsd.com/files/2011/01/keep_out_sign-275x269.jpg" alt="" title="keep_out_sign" width="275" height="269" class="alignright size-medium wp-image-39064" /></a></p>
<p>Many years ago, before Google went public, I had an unusual late-night conversation in the lobby of the TED conference with its co-founder Larry Page about the prospect, about which&#8211;despite its inevitability&#8211;he had more than a little nervousness.</p>
<p>That would be: Taking the search company public.</p>
<p>After much ruminating, Page concluded that one of the more important reasons he felt compelled to have an IPO was to finally reward Google&#8217;s employees for all the work they had done to build the company.</p>
<p>While I have never had a similar chat with Facebook CEO Mark Zuckerberg about the powerful social networking company and an initial public offering, I suspect that he would not express any such sentiment.</p>
<p>And it&#8217;s not because Zuckerberg does not value his staffers any less than Page did&#8211;instead, it&#8217;s because he seems to value his privacy most of all.</p>
<p>I know&#8211;<em>ironic</em>!&#8211;given how many perceive the company to be cavalier about important issues related to disclosures of personal information uploaded to Facebook by the mountain-load daily by its hundreds of millions of users.</p>
<p>That aside, Zuckerberg&#8217;s clear intent to keep the lid on Facebook tight&#8211;with no information about the details of financial performance and other pertinent information a public offering would require be disclosed&#8211;is clearly about to become a nettlesome issue for the company.</p>
<p>While that effort at preserving secrecy by staying private has resulted in little more than cute Silicon Valley media guessing games about a possible IPO, its most recent machinations are too clever by a half.</p>
<p>That would be the <a href="http://networkeffect.allthingsd.com/20110102/by-the-numbers-goldman-sachs-buddies-up-with-facebook/">new and giant investment from Goldman Sachs</a>, as well as a deal to get $1.5 billion of pre-IPO shares in the hands of the investment bank&#8217;s rich customers.</p>
<p>Aside from the appalling image that only the very wealthy can get an early shot at Facebook shares, which instantly became a press meme yesterday after the Goldman deal was announced, pretending this single investment entity&#8211;called a &#8220;special purpose vehicle&#8221;&#8211;simply feels like a Wall Street trick.</p>
<p>Plus, a special purpose vehicle sounds like a car that bankers use to take people for a ride.</p>
<p><a href="http://kara.allthingsd.com/files/2011/01/res-ipsa.jpeg"><img src="http://kara.allthingsd.com/files/2011/01/res-ipsa.jpeg" alt="" title="res ipsa" width="200" height="200" class="alignleft size-full wp-image-39120" /></a></p>
<p>Thus, a gaggle of rich doctors in New Jersey are treated like one blob, instead of what is plainly true to all. As the old Latin legal phrase goes: Res ipsa loquitur (the thing speaks for itself).</p>
<p>Of course, this strategic move is designed to keep the number of primary stockholders under 500, which is the IPO tipping point for the Securities and Exchange Commission.</p>
<p>Therefore, by all means, let&#8217;s do it!</p>
<p>Or not, because I had an intense déjà vu about all this, and an unease that it felt vaguely familiar as a negative characteristic of Zuckerberg&#8217;s leadership that seems to cling to him.</p>
<p>That would be the dicey origins of Facebook, which remain a controversy to this day, including garnering an entire Hollywood movie on the subject.</p>
<p>Anyone with a passing knowledge of Facebook&#8217;s history knows the basic question: Did Mark Zuckerberg &#8220;steal&#8221; the idea for Facebook from the Winklevoss twins, as well as sandbag their efforts, while they were all students at Harvard University?</p>
<p>And, more to the point, was it illegal?</p>
<p>The Winklevii certainly think so, continuing in their Don Quixote quest to take Zuckerberg down in a series of ever-more-comical lawsuits.</p>
<p>For me, the answer is a lot more complex&#8211;I think Zuckerberg most definitely screwed with the Olympic rowing twins and it was very creepy that he did.</p>
<p>But, in terms of breaking the law, not so much.</p>
<p>Of course, if you are endeavoring to always act with ethics in your career, this should not be the bar set. But in practical terms, it was most definitely an aggressive knee-capping that is not uncommon in business.</p>
<p>Zuckerberg has shown similar tendencies many times since then, especially around the thorny issues of privacy, where fast-and-loose behaviors are quickly followed by the I&#8217;m-sorry-I-didn&#8217;t-mean-it excuses.</p>
<p>Okay, fine, I get it. Business is war.</p>
<p>But, as it moves into a more mature place,  the question now is whether Facebook should keep stressing this kind of wink-wink-nudge-nudge propensity, because it feels&#8211;how can I say this in the nicest way&#8211;icky.</p>
<p>Plus it will surely attract unneeded attention from the SEC, which is already looking into the opaque market for trading shares of closely held companies and where Facebook is the star attraction.</p>
<p>And this is to say nothing of other issues&#8211;for example, could there be insider trading problems around the buying and selling of these private shares, as one person close to the situation has noted to me?</p>
<p><a href="http://kara.allthingsd.com/files/2011/01/imgres2.jpeg"><img src="http://kara.allthingsd.com/files/2011/01/imgres2.jpeg" alt="" title="imgres" width="260" height="194" class="alignright size-full wp-image-39121" /></a></p>
<p>Facebook, of course, will defend what it is doing as above board, say it&#8217;s not unfair to give special access to its bounty to the very rich in what is essentially a private IPO and wag a finger at critics like me and tell us we don&#8217;t understand sophisticated financial issues.</p>
<p>But here&#8217;s what I grok without a Harvard Business School degree: It feels sneaky, it feels elite, it feels opaque, and this kind of fancy financing footwork could end in tears.</p>
<p>Because these legitimate questions on how Facebook handles its stock will continue to dog the company until&#8211;when he is good and ready (and finances at Facebook look prettier)&#8211;Zuckerberg eventually pulls the trigger on an IPO.</p>
<p>It would be nice, even if Wall Street applauds his cleverness, if he didn&#8217;t keep shooting himself in the foot along the way.</p>
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		<title>When Facebook Bought ConnectU From the Winklevii (Or, Parsing Legal Filings for Fun)</title>
		<link>http://allthingsd.com/20101210/when-facebook-bought-connectu-from-the-winklevii-or-parsing-legal-filings-for-fun/</link>
		<comments>http://allthingsd.com/20101210/when-facebook-bought-connectu-from-the-winklevii-or-parsing-legal-filings-for-fun/#comments</comments>
		<pubDate>Fri, 10 Dec 2010 16:30:36 +0000</pubDate>
		<dc:creator>Liz Gannes</dc:creator>
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		<guid isPermaLink="false">http://networkeffect.allthingsd.com/?p=1095</guid>
		<description><![CDATA[Earlier this week there was some confusion about outlets reporting that Tyler and Cameron Winklevoss had filed another lawsuit against Facebook CEO Mark Zuckerberg for stealing their social networking idea. The brief was actually filed back in June, but it's still interesting reading.]]></description>
			<content:encoded><![CDATA[<p>Earlier this week there was some confusion about outlets reporting that Tyler and Cameron Winklevoss had filed another lawsuit against Facebook CEO Mark Zuckerberg for stealing the social networking idea they had asked him to develop for them back when they were all students at Harvard. While the <a href="http://www.dailymail.co.uk/news/article-1336619/Facebook-Winklevoss-twins-launch-suit-Mark-Zuckerberg.html">Daily Mail story</a> on the matter has been taken offline, <a href="http://www.radaronline.com/exclusives/2010/12/exclusive-documents-facebook-founder-tells-court-enemies-dont-deserve-more">Radar</a> posted a <a href="http://www.radaronline.com/sites/radaronline.com/files/Facebookappealspost.pdf">PDF court filing</a> of a Facebook brief to the U.S. District Court in California, where the Winklevii had appealed their argument that the $65 million settlement they had extracted from Facebook was nonbinding and constituted securities fraud, given information Facebook had not shared with the brothers about its valuation.</p>
<p>The brief was actually filed back in June, and I found a better, watermark-free copy of it <a href="http://www.howardrice.com/admin/ktmlpro/includes/site/layouts/40/uploads/files/BriefofAppellees.pdf">here</a> on the Web site of the Winklevoss lawyers. Last night I took the time to read it in full, and it was surprisingly not boring.</p>
<p>Perhaps the most revelatory thing in the Facebook filing is that Facebook&#8217;s lawyers seem to be having fun with the case. Their writing is laden with imagery and over-the-top exasperation with the Winklevii&#8217;s allegedly poorly formed legal arguments. Here&#8217;s the dramatic intro to the brief:</p>
<blockquote class="memo"><p>This appeal arises from the settlement of rancorous litigation on two coasts. On one side were Appellees Facebook, Inc. and its founder and CEO Mark Zuckerberg. On the other side were the Appellants, who founded a failing competitor of Facebook&#8217;s called ConnectU. The CU Founders claimed that they had the idea for Facebook first, and Facebook stole their idea. Facebook denied those claims and, for its part, accused ConnectU and its Founders of unlawfully infiltrating its systems, stealing millions of email addresses, and then spamming them. During a global mediation, the parties signed a &#8220;Term Sheet and Settlement Agreement.&#8221; In the interest of achieving litigation peace, Facebook agreed to purchase ConnectU for [redacted] dollars and [redacted] shares of Facebook stock, one of the hottest startups in the world. Surrounded by a bevy of lawyers, the CU Founders signed the deal. Then they suffered a bout of settlers&#8217; remorse. They ask this Court to relieve them of the deal they struck to plunge back into scorched-earth litigation.</p></blockquote>
<p>Besides the writing, the other thing that&#8217;s interesting is the information about the terms of the relationship between Facebook and ConnectU. While the story has been simplified into a Hollywood-style betrayal as portrayed in &#8220;The Social Network,&#8221; the outcome of Zuckerberg and the Winklevii&#8217;s legal mediation is much less widely reported.</p>
<p><a href="http://kara.allthingsd.com/20101005/winklevii-versus-zuck-whod-you-rather/"><img class="alignright size-Medium380 wp-image-1110" title="wink" src="http://networkeffect.allthingsd.com/files/2010/12/wink-282x400.jpg" alt="" width="169" height="240" /></a>As part of its settlement with the Winklevoss twins, Facebook agreed to acquire their social network ConnectU (which they eventually did find someone to build), and has been &#8220;operating&#8221; it since Dec. 2008, the filing says (the site itself is offline).</p>
<p>Facebook contends that this earlier agreement to buy ConnectU was final, while the Winklevii are calling it a draft (their co-founder Divya Narendra <a href="http://www.northwestern.edu/newscenter/stories/2010/11/divya-narendra-facebook.html">has publicly said</a> he&#8217;s moved past the Zuckerberg vendetta, though he&#8217;s mentioned in the filings as well).</p>
<p>The settlement came after closed-door professional mediation in February 2008. Facebook says it&#8217;s outraged that the Winklevii and their lawyers are bringing conversations from mediation back into the appeal, because all involved were sworn to confidentiality.</p>
<p>(You can also read the <a href="http://www.docstoc.com/docs/39214697/The-Facebook-Inc-vs-ConnectU-Inc-Appeal-Brief">ConnectU appeal brief for the case</a> to which Facebook was responding. However the bits from the mediation that were supposed to be confidential have been blacked out.)</p>
<p>But after the settlement, ConnectU came back to the table asking for its share to be revalued. It had originally negotiated using a publicly reported valuation from <a href="http://kara.allthingsd.com/20080507/microsofts-project-granola-facebook-tastier-than-yahoo/">when Microsoft invested in Facebook</a>, rather than an internal valuation from around the same time that would have priced the shares much lower ($8.88 versus $35.90). A revaluation of the shares to a smaller amount would give the twins a larger stake in the company.</p>
<p>And also, the Winklevii wanted the transaction to be labeled a merger instead of an acquisition so they could avoid paying some taxes on it.</p>
<p>Facebook replied in the June brief, again in remarkably florid fashion:</p>
<blockquote class="menu"><p>&#8220;First, the CU Founders try to leave this Court with the impression that the only valuation figure they knew was the $15 billion figure from the Microsoft press release, and that they, therefore, had reason to enshrine it as gospel. They also portray the one 409A valuation on which they rely here as some seismic event in the life of the company, as if an unexpected bolt of lightning from on high emblazoned $8.88 onto a couple of tablets. Both the impressions are false.&#8221;</p></blockquote>
<p><img class="size-thumbnail wp-image-1106 alignleft" title="MonteCooper" src="http://networkeffect.allthingsd.com/files/2010/12/MonteCooper-140x150.jpg" alt="" width="112" height="120" /></p>
<p>Facebook, by the way, to add insult to injury, says the internal valuation of its shares at the time of the Microsoft investment was actually even lower than the Winklevoss lawyers are arguing: Six days before the Microsoft transaction, Facebook had filed a document valuing employee stock options at just $6.61.</p>
<p>The attorney who signed the Facebook brief is <a href="http://www.orrick.com/lawyers/Bio.asp?ID=110166">Monte Cooper of Orrick,</a> an intellectual property specialist. I hope he also writes novels in his spare time.</p>
<p><em>Please see the disclosure about Facebook in <a href="http://allthingsd.com/about/liz-gannes/">my ethics statement</a>.</em></p>
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		<slash:comments>4</slash:comments>
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		<title>Viral Video: The Whole Fuddy-Duddy &quot;60 Minutes&quot; Zuckerberg Interview</title>
		<link>http://allthingsd.com/20101206/viral-video-the-whole-fuddy-duddy-60-minute-zuckerberg-interview/</link>
		<comments>http://allthingsd.com/20101206/viral-video-the-whole-fuddy-duddy-60-minute-zuckerberg-interview/#comments</comments>
		<pubDate>Mon, 06 Dec 2010 08:11:36 +0000</pubDate>
		<dc:creator>Kara Swisher</dc:creator>
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		<guid isPermaLink="false">http://kara.allthingsd.com/?p=38198</guid>
		<description><![CDATA[Here is the whole CBS interview on "60 Minutes" last night of Mark Zuckerberg.

The quick poll of the piece on Twitter and in the blogosphere: The Facebook co-founder and CEO did great and his Harvard University nemisii, the Winklevoss twins, looked goony and graspy (even though Zuck did sandbag them).]]></description>
			<content:encoded><![CDATA[<p><a href="http://kara.allthingsd.com/files/2010/12/imgres1.jpeg"><img src="http://kara.allthingsd.com/files/2010/12/imgres1-150x150.jpg" alt="" title="imgres" width="150" height="150" class="alignright size-thumbnail wp-image-38199" /></a></p>
<p>Here is the whole CBS interview on &#8220;60 Minutes&#8221; of Mark Zuckerberg, which aired last night.</p>
<p>The quick poll of the piece on Twitter and in the blogosphere: The Facebook co-founder and CEO did great and his Harvard University nemisii, the Winklevoss twins, looked goony and graspy (even though Zuck <em>did</em> sandbag them).</p>
<p>And, yes, BoomTown said the Winklevii got enough dough for their role in social networking history and the &#8220;toddler CEO&#8221; turned out to be a prodigy. Also, that veteran television correspondent Lesley Stahl is a &#8220;fuddy-duddy&#8221; (she asked and I <em>keed</em>!).</p>
<p>But see for yourself, in two parts:</p>
<p><embed src="http://cnettv.cnet.com/av/video/cbsnews/atlantis2/cbsnews_player_embed.swf" scale="noscale" salign="lt" type="application/x-shockwave-flash" background="#333333" width="380" height="313" allowFullScreen="true" allowScriptAccess="always" FlashVars="si=254&#038;uvpc=http://cnettv.cnet.com/av/video/cbsnews/atlantis2/uvp_cbsnews.xml&#038;contentType=videoId&#038;contentValue=50096947&#038;ccEnabled=false&amp;hdEnabled=false&#038;fsEnabled=true&#038;shareEnabled=false&#038;dlEnabled=false&#038;subEnabled=false&#038;playlistDisplay=none&#038;playlistType=none&#038;playerWidth=425&#038;playerHeight=239&#038;vidWidth=425&#038;vidHeight=239&#038;autoplay=false&#038;bbuttonDisplay=none&#038;playOverlayText=PLAY%20CBS%20NEWS%20VIDEO&#038;refreshMpuEnabled=true&#038;shareUrl=http://www.cbsnews.com/video/watch/?id=7120522n&#038;adEngine=dart&#038;adCallTemplate=http://www.cbs.com/thunder/ad.doubleclick.net/adx/request.php?/can/news/undefined;site=news;show=undefined;undefinedpartner=news;lvid=50096947;outlet=CBS+Production;noAd=undefined;type=ros;format=FLV;pos=undefined;sz=320x240;ord=295236;playerVersion=1.0;&#038;adPreroll=true&#038;adPrerollType=PreContent&#038;adPrerollValue=1" /></p>
<p><embed src="http://cnettv.cnet.com/av/video/cbsnews/atlantis2/cbsnews_player_embed.swf" scale="noscale" salign="lt" type="application/x-shockwave-flash" background="#333333" width="380" height="313" allowFullScreen="true" allowScriptAccess="always" FlashVars="si=254&#038;uvpc=http://cnettv.cnet.com/av/video/cbsnews/atlantis2/uvp_cbsnews.xml&#038;contentType=videoId&#038;contentValue=50096948&#038;ccEnabled=false&amp;hdEnabled=false&#038;fsEnabled=true&#038;shareEnabled=false&#038;dlEnabled=false&#038;subEnabled=false&#038;playlistDisplay=none&#038;playlistType=none&#038;playerWidth=425&#038;playerHeight=239&#038;vidWidth=425&#038;vidHeight=239&#038;autoplay=false&#038;bbuttonDisplay=none&#038;playOverlayText=PLAY%20CBS%20NEWS%20VIDEO&#038;refreshMpuEnabled=true&#038;shareUrl=http://www.cbsnews.com/video/watch/?id=7120538n&#038;adEngine=dart&#038;adCallTemplate=http://www.cbs.com/thunder/ad.doubleclick.net/adx/request.php?/can/news/undefined;site=news;show=undefined;undefinedpartner=news;lvid=50096948;outlet=CBS+Production;noAd=undefined;type=ros;format=FLV;pos=undefined;sz=320x240;ord=469498;playerVersion=1.0;&#038;adPreroll=true&#038;adPrerollType=PreContent&#038;adPrerollValue=1" /></p>
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		<slash:comments>8</slash:comments>
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		<title>Oscar Bouquets for &quot;The Social Network,&quot; as Zuckerberg Readies for the Brickbats</title>
		<link>http://allthingsd.com/20100917/oscar-bouquets-for-the-social-network-as-zuckerberg-readies-for-the-brickbats/</link>
		<comments>http://allthingsd.com/20100917/oscar-bouquets-for-the-social-network-as-zuckerberg-readies-for-the-brickbats/#comments</comments>
		<pubDate>Fri, 17 Sep 2010 12:14:43 +0000</pubDate>
		<dc:creator>Kara Swisher</dc:creator>
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		<guid isPermaLink="false">http://kara.allthingsd.com/?p=33772</guid>
		<description><![CDATA[It's just a post on the popular entertainment blog "Deadline Hollywood."

But it's a clear indication the makers of the movie about the origins of Facebook are gunning for maximum attention and Oscar buzz with only a few weeks to go before its debut.

And they will further gas up the marketing machine for "The Social Network" more, even though it appears it will be devastating to the real-life version of its main subject, Facebook co-founder and CEO Mark Zuckerberg.]]></description>
			<content:encoded><![CDATA[<p><img src="http://kara.allthingsd.com/files/2010/09/facebook1.jpeg" alt="" title="facebook1" width="179" height="282" class="alignright size-full wp-image-33875" /></p>
<p>It&#8217;s just a post on the popular <a href="http://www.deadline.com/2010/09/can-social-network-go-all-the-way/">entertainment blog &#8220;Deadline Hollywood.&#8221;</a></p>
<p>But it&#8217;s a clear indication the makers of the movie about the origins of Facebook are gunning for maximum attention and Oscar buzz with only a few weeks to go before its debut.</p>
<p>In fact, awards columnist Pete Hammond was pretty much channeling the marketing plan of Oscar-winning producer Scott Rudin for &#8220;The Social Network,&#8221; which has its premiere in New York on September 24 and its wide rollout on October 1.</p>
<p>Rudin&#8211;the volcano of a producer about whom I would like to see a biopic like the one he is sticking it to Facebook co-founder and CEO Mark Zuckerberg with&#8211;has apparently been personally inviting every online chatterbox (not me!) and their mother to screenings of the film from the Sony (SNE) movie unit, Columbia Pictures, in recent weeks.</p>
<p>Writes Hammond:</p>
<blockquote class="memo"><p>It&#8217;s a smart strategy but even without a personal invitation from one of the film&#8217;s producers this is already the current must-see movie on every Oscar watchers list. As an example of that, one blogger actually got on a plane from Toronto to New York just to see Social Network, then headed immediately back to Toronto. His subsequent review was a rave declaring it the one to beat for Best Picture (a little premature on that I think). That&#8217;s just one example of the praise now starting to hit the Internet from Hitfix to Slashfilm to Chud and all cyber points inbetween.</p></blockquote>
<p>A little premature perhaps, but it seems to have worked with Hammond:</p>
<blockquote class="memo"><p>I saw it at the first opportunity on Monday and would have to say fairly objectively that The Social Network is Sony’s best shot at Best Picture in years, a lock for Golden Globe and Critics Choice Awards. And most importantly, Oscar nominations in every major category including Director for David Fincher, Writing for Aaron Sorkin, lead actor for Jesse Eisenberg (playing Facebook founder Mark Zuckerberg), Supporting Actor for  both Andrew Garfield and Justin Timberlake, Trent Reznor and Atticus Ross&#8217;  score, editing and so on. It also looks like it will be a major box office hit, hitting a nerve with the young demographic that are on the front lines of moviegoers&#8230;</p>
<p>Despite its high-tech bones, what Fincher and Sorkin have managed to do is tell a time-honored very human story, a social document for a generation that has as much relevance now as movies like On The Waterfront, Network, All The President&#8217;s Men, and The Graduate did in their time.</p></blockquote>
<p>Expect more of the same from those who get sucked up into the marketing machine for &#8220;The Social Network&#8221; in the next weeks, even though it appears it will be devastating to the real-life version of its main subject, Mark Zuckerberg.</p>
<p>And really, really unfair, <a href="http://mediamemo.allthingsd.com/20100913/the-social-network-is-just-as-brutal-as-mark-zuckerberg-feared">according to MediaMemo&#8217;s Peter Kafka</a>, by taking one aspect of his personality&#8211;awkward arrogance or perhaps arrogant awkwardness&#8211;and twisting it into a much deeper malevolence.</p>
<p>I have no doubt in my mind that Zuckerberg pulled an epic geek sandbagging on the clueless Winklevoss twins by promising to work on their goofy concept for a social networking site at Harvard University, then not doing so and working on his own ideas instead.</p>
<p>And, for sure, he had a painfully typical start-up falling-out with his own early partners.</p>
<p>But let&#8217;s get real here&#8211;they all got paid off plenty for being present at the creation of something they themselves <em>never</em> could have created.</p>
<p>Does anyone honestly believe the Winklevii were capable of making Facebook, or any reasonable facsimile, any more than Zuckerberg was capable of rowing in the Olympics?</p>
<p>While hitting some right notes about Zuckerberg&#8217;s mannerisms&#8211;conversations with him can be very perplexing&#8211;the Mark of &#8220;The Social Network&#8221; is largely fictional.</p>
<p><img src="http://kara.allthingsd.com/files/2010/09/888046443_baa4d-M-200x300.jpg" alt="" title="888046443_baa4d-M" width="200" height="300" class="alignleft size-medium wp-image-33881" /></p>
<p>Certainly, he has some glaring faults (and so do I!).</p>
<p>But they are no worse that other tech leaders&#8217;, from Bill Gates of Microsoft (MSFT) to Steve Jobs of Apple (AAPL) to Silicon Valley&#8217;s own twins, Larry Page and Sergey Brin of Google (GOOG).</p>
<p>Interestingly, the night before what turned out to be a very <a href="http://d8.allthingsd.com/speakers/mark-zuckerberg/">difficult onstage interview</a> at the eighth <strong>D: All Things Digital</strong> conference in June, at a dinner just south of Los Angeles, Zuckerberg fretted to me about the film.</p>
<p>&#8220;It&#8217;s what a lot of people will think I am like, because it&#8217;s a movie and that has impact on their perceptions,&#8221; he said with a lot of concern in his voice.</p>
<p>I pooh-poohed his complaints and told him not to worry about it too much.</p>
<p>&#8220;It&#8217;s <em>just</em> a movie,&#8221; I said. &#8220;No one believes what they see at the movies anymore.&#8221;</p>
<p>But as this film chugs along&#8211;gaining Oscar velocity right onto the stage of the Academy Awards at the Kodak Theatre at 6801 Hollywood Boulevard on February 27, 2011&#8211;I can now see Zuckerberg might have been right all along.</p>
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		<title>The Facebook Movie&#039;s First Review Is Boffo: Here&#039;s How Mark Zuckerberg Can Take Back the Mojo</title>
		<link>http://allthingsd.com/20100823/the-facebook-movies-first-review-boffo-heres-how-mark-zuckerberg-can-take-back-the-mojo/</link>
		<comments>http://allthingsd.com/20100823/the-facebook-movies-first-review-boffo-heres-how-mark-zuckerberg-can-take-back-the-mojo/#comments</comments>
		<pubDate>Mon, 23 Aug 2010 21:44:37 +0000</pubDate>
		<dc:creator>Kara Swisher</dc:creator>
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		<guid isPermaLink="false">http://kara.allthingsd.com/?p=32719</guid>
		<description><![CDATA[Apparently, the review is in--only one review, so far--but it's a corker.

Although "The Social Network," the movie about the origins of Facebook, is not coming out until its premiere at the New York Fim Festival in October, Scott Foundas, a reviewer for its magazine, Film Comment, is loving it in a piece in the September issue.

Now, I am beginning to feel bad for CEO and Co-founder Mark Zuckerberg, because it looks like this Columbia Pictures film might even be Oscar-worthy.

So, here's what he should do.]]></description>
			<content:encoded><![CDATA[<p><img src="http://kara.allthingsd.com/files/2010/08/Picture-191-275x205.png" alt="" title="Picture-191" width="275" height="205" class="alignright size-medium wp-image-32743" /></p>
<p>Apparently, the review is in&#8211;only one review, so far&#8211;but it&#8217;s a corker.</p>
<p>Although &#8220;The Social Network,&#8221; the Columbia Pictures movie about the origins of Facebook, is not coming out until its premiere at the New York Film Festival in October, Scott Foundas, a reviewer for its publication, Film Comment, is <a href="http://www.filmlinc.com/nyff/2010/revenge-of-the-nerd">loving it in a piece in the September issue</a>.</p>
<p>The magazine operates under the auspices of the Film Society of Lincoln Center, which throws the film event where <a href="http://kara.allthingsd.com/20100625/viral-video-scary-teaser-trailer-makes-upcoming-facebook-movie-seem-like-a-slasher-film/">&#8220;The Social Network&#8221;</a> is debuting.</p>
<p>After a lot of film reviewer throat-clearing about not using social networking tools, harrumphing on its global implications and then bizarrely boiling Facebook down to being &#8220;born of a romantic rejection,&#8221; Foundas writes in the review titled &#8220;Revenge of the Nerd&#8221;:</p>
<blockquote class="memo"><p>This is very rich material for a movie on such timeless subjects as power and privilege, and such intrinsically 21st-century ones as the migration of society itself from the real to the virtual sphere&#8211;and David Fincher&#8217;s &#8220;The Social Network&#8221; is big and brash and brilliant enough to encompass them all&#8230;.</p>
<p>Adapted by &#8220;The West Wing&#8221; creator Aaron Sorkin from Ben Mezrich&#8217;s nonfiction best-seller &#8220;The Accidental Billionaires,&#8221; &#8220;The Social Network&#8221; was one of those &#8220;buzz&#8221; scripts that seemed to be on everyone&#8217;s lips in Hollywood for the past couple of years, and it&#8217;s easy to understand why. The writing is razor-sharp and rarely makes a wrong step, compressing a time-shifting, multi-character narrative into two lean hours, and, perhaps most impressively, digests its big ideas into the kind of rapid-fire yet plausible dialogue that sounds like what hyper computer geeks might actually say (or at least wish they did): Quentin Tarantino crossed with Bill Gates.</p></blockquote>
<p>Oh, dear. <em>Oh, dear.</em> Now, I am beginning to feel bad for CEO and co-founder Mark Zuckerberg, because it looks like this film might even be Oscar-worthy for Columbia&#8217;s Sony (SNE) bosses.</p>
<p>But more:</p>
<blockquote class="memo"><p>From a legal perspective, it’s a thorny case of he-said/he-said, though the movie is less concerned with assigning blame than with considering Zuckerberg’s precise degree of assholedom, or lack thereof&#8230;.But to the sure nervousness of the studio, and the potential discomfort of some viewers, Fincher and Sorkin chart a more treacherous course straight down the middle of Zuckerberg&#8217;s many contradictions, one in which there are no obvious winners or losers, good guys or bad&#8211;only a series of highly pressurized social (and genetic) forces.</p></blockquote>
<p>Oh, dear, a treacherous course, well charted.</p>
<blockquote class="memo"><p>Lest I seem to suggest otherwise, I hasten to add that &#8220;The Social Network&#8221; is splendid entertainment from a master storyteller, packed with energetic incident and surprising performances (not least from Justin Timberlake as Napster founder Sean Parker, who’s like Zuckerberg’s flamboyant, West Coast id). It is a movie of people typing in front of computer screens and talking in rooms that is as suspenseful as any more obvious thriller. But this is also social commentary so perceptive that it may be regarded by future generations the way we now look to &#8220;Gatsby&#8221; for its acute distillation of Jazz Age decadence.</p></blockquote>
<p>Oh, dear, Gatsby, and back to fabulous. May I have the envelope, please&#8230;</p>
<p>What to do then?</p>
<p>Here are BoomTown&#8217;s five steps to reclaim the ground in this seemingly surefire Hollywood invasion of Silicon Valley.:</p>
<p><strong>1.)</strong> Even though he looked at me like I was tripping, I wasn&#8217;t kidding when I recently told Zuckerberg to attend the New York premiere. <em>With me!</em> (Elliot can come only if he keeps a lid on it.)</p>
<p>If Zuckerberg attends, he is the story, sucking the oxygen away from the movie itself, especially if he looks fly and laughs a lot.</p>
<p>A tux, going up to the actor who plays him and saying the resemblance is astonishing and general self-deprecation can go a long way.</p>
<p>Especially when you are the only one who ended up a soon-to-be billionaire, including the moviemakers and their bosses.</p>
<p><strong>2.)</strong> Throw a movie night at Facebook for the staff&#8211;and make it a double feature with the excellent <a href="http://kara.allthingsd.com/20100817/catfish-the-other-facebook-movie-speaks-real-truths-about-the-social-network-plus-video">&#8220;Catfish,&#8221;</a> about a scammer on the social networking site.</p>
<p>Then, lead a discussion group about the fact versus fiction. Ignoring this film, especially if it is a hit, does not make its impact go away.</p>
<p>Invite the filmmakers and all the players from back then to talk too&#8211;<em>Winklevii alert</em>, but this time Zuck has security! To be sure, this is a risky one, given Zuckerberg&#8217;s sometime awkwardness in public.</p>
<p><strong>3.)</strong> Unveil all the original documents&#8211;and I mean <em>all</em>&#8211;about those years, making them available on Facebook for all to see. The Winklevoss case and others are settled now, so there seems little need to hide what was clearly a rocky start.</p>
<p>If Zuckerberg and Facebook truly believe in transparency, use the movie to get it all out there and be done with it.</p>
<p><strong>4.)</strong> The ignoring-it option seems only available to an island like Apple (AAPL) CEO Steve Jobs, who truly does not care what people think of him. On the other hand, Zuckerberg surely and clearly does.</p>
<p><img src="http://kara.allthingsd.com/files/2010/08/living_well_is_the_best_revenge_tshirt-p235535984470682511q08p_400-275x275.jpg" alt="" title="living_well_is_the_best_revenge_tshirt-p235535984470682511q08p_400" width="275" height="275" class="alignleft size-medium wp-image-32762" /></p>
<p>If he wants to take the company public, why not practice with intense scrutiny here, as these incidents at the origin of Facebook are still not purged from the company.</p>
<p><strong>5.)</strong> After it&#8217;s all over, live well. It&#8217;s apparently the best revenge. (Also, at least &#8220;The Social Network&#8221; is going to be much more interesting than the <a href="http://kara.allthingsd.com/20100823/boomtown-casts-the-google-movie-youre-welcome-hollywood/">Google (GOOG) Movie</a>.</p>
]]></content:encoded>
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		<title>Another Teaser Trailer for The Facebook Movie: 100 Percent More Poking of Zuckerberg!</title>
		<link>http://allthingsd.com/20100708/another-teaser-trailer-for-the-facebook-movie-100-percent-more-poking-of-zuckerberg/</link>
		<comments>http://allthingsd.com/20100708/another-teaser-trailer-for-the-facebook-movie-100-percent-more-poking-of-zuckerberg/#comments</comments>
		<pubDate>Thu, 08 Jul 2010 23:08:59 +0000</pubDate>
		<dc:creator>Kara Swisher</dc:creator>
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		<guid isPermaLink="false">http://kara.allthingsd.com/?p=30362</guid>
		<description><![CDATA[Here's another teaser trailer for "The Social Network," which makes it clear that the movie is going to be a warts-and-all-and-then-more warts portrait of the beginnings of Facebook.

Most maligned: Co-founder and CEO Mark Zuckerberg, who seems to be portrayed as a social networking sociopath.]]></description>
			<content:encoded><![CDATA[<p><img src="http://kara.allthingsd.com/files/2010/07/Lasttimepokingcat-275x248.jpg" alt="" title="Lasttimepokingcat" width="275" height="248" class="alignright size-medium wp-image-30365" /></p>
<p>Here&#8217;s another teaser trailer for &#8220;The Social Network,&#8221; which makes it clear that the movie is going to be a warts-and-all-and-then-more warts portrait of the beginnings of Facebook.</p>
<p>Most maligned: Co-founder and CEO Mark Zuckerberg, who seems to be portrayed as a social networking sociopath.</p>
<p>Unlike the first&#8211;which uses single words such as &#8220;punk&#8221; and &#8220;genius,&#8221; foreboding music and some dialogue about the Web that sounds downright scary&#8211;this one uses a series of typed Wall messages on Facebook among its founders, including Zuckerberg, Dustin Moskovitz and Eduardo Saverin.</p>
<p>Also making a special guest appearance: The Winklevoss brothers, who have claimed Zuckerberg stole the idea for Facebook (and whom BoomTown has affectionately dubbed The Winklevii!)</p>
<p>It&#8217;s all very intense, as you will see, especially the last line, uttered like there is some sort of sharp weapon involved: &#8220;You better lawyer up, since I&#8217;m coming back for <em>everything</em>!!!&#8221;</p>
<p><em>Rut-roh!</em></p>
<p>The marketing of this film about the Silicon Valley phenom should be pretty interesting to watch. Yesterday, I reported that Sony (SNE) studio unit <a href="http://kara.allthingsd.com/20100707/the-facebook-movie-will-not-be-using-facebook-to-market-the-facebook-movie-online/">Columbia Pictures will not be using Facebook</a> to advertise &#8220;The Social Network,&#8221; due to issues around its advertising parameters.</p>
<p>But there are fan pages for the movie on Facebook, so apparently all is fair in, well, war and war.</p>
<p>Adding more fuel to the fire, it was just announced today the movie will open the <a href="http://www.filmlinc.com/nyff/index.html">New York Film Festival</a> on September 24th (Elliot, will you attend with me?)</p>
<p>So, until the movie is out, here&#8217;s the new video of the trailer, with the first below it:</p>
<p><object width='380' height='313' id='flash46347' classid='clsid:D27CDB6E-AE6D-11cf-96B8-444553540000'><param name='movie' value='http://flash.sonypictures.com/video/universalplayer/sharedPlayer.swf'></param><param name='allowFullscreen' value='true'></param><param name='allowNetworking' value='all'></param><param name='allowScriptAccess' value='always'></param><param name='flashvars' value='feed=http%3A//www.sonypictures.com/previews/movies/thesocialnetwork.xml&#038;clip=2256'></param><embed src='http://flash.sonypictures.com/video/universalplayer/sharedPlayer.swf' width='380' height='313' type='application/x-shockwave-flash' flashvars='feed=http%3A//www.sonypictures.com/previews/movies/thesocialnetwork.xml&#038;clip=2256' allowNetworking='all' allowscriptaccess='always' allowfullscreen='true'></embed></object></p>
<p><object width='380' height='313' id='flash97991' classid='clsid:D27CDB6E-AE6D-11cf-96B8-444553540000'><param name='movie' value='http://flash.sonypictures.com/video/universalplayer/sharedPlayer.swf'></param><param name='allowFullscreen' value='true'></param><param name='allowNetworking' value='all'></param><param name='allowScriptAccess' value='always'></param><param name='flashvars' value='feed=http%3A//www.sonypictures.com/previews/movies/thesocialnetwork.xml&#038;clip=2189'></param><embed src='http://flash.sonypictures.com/video/universalplayer/sharedPlayer.swf' width='380' height='313' type='application/x-shockwave-flash' flashvars='feed=http%3A//www.sonypictures.com/previews/movies/thesocialnetwork.xml&#038;clip=2189' allowNetworking='all' allowscriptaccess='always' allowfullscreen='true'></embed></object></p>
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		<title>The Year in Wisecracks</title>
		<link>http://allthingsd.com/20091231/the-year-in-wisecracks/</link>
		<comments>http://allthingsd.com/20091231/the-year-in-wisecracks/#comments</comments>
		<pubDate>Thu, 31 Dec 2009 13:45:01 +0000</pubDate>
		<dc:creator>John Paczkowski</dc:creator>
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		<description><![CDATA[[ See post to watch video ]]]></description>
			<content:encoded><![CDATA[<p><div class="video-wsj"><object width="640" height="360"><param name="movie" value="http://s.wsj.net/media/swf/microPlayer.swf"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><param name="flashvars" value="videoGUID=C13EAF9E-B90A-448A-B437-8B37EDBEADB1&playerid=4001&plyMediaEnabled=1&configURL=http://m.wsj.net/video-players/&autoStart=false" base="http://s.wsj.net/media/swf/"name="microflashPlayer"></param><embed src="http://s.wsj.net/media/swf/microPlayer.swf" bgcolor="#FFFFFF" flashVars="videoGUID={C13EAF9E-B90A-448A-B437-8B37EDBEADB1}&playerid=4001&plyMediaEnabled=1&configURL=http://m.wsj.net/video-players/&autoStart=false" base="http://s.wsj.net/media/swf/" name="microflashPlayer" width="640" height="360" seamlesstabbing="false" type="application/x-shockwave-flash" swLiveConnect="true" pluginspage="http://www.macromedia.com/shockwave/download/index.cgi?P1_Prod_Version=ShockwaveFlash"></embed><br />[ See post to watch video ]</div></object></p>
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		<title>BoomTown&#039;s Top 10 List of Fact-Challenged Revelations That Should Be in the Facebook Tell-All Book</title>
		<link>http://allthingsd.com/20090624/boomtowns-top-10-list-of-fact-challenged-revelations-that-should-be-in-the-facebook-tell-all-book/</link>
		<comments>http://allthingsd.com/20090624/boomtowns-top-10-list-of-fact-challenged-revelations-that-should-be-in-the-facebook-tell-all-book/#comments</comments>
		<pubDate>Wed, 24 Jun 2009 22:34:39 +0000</pubDate>
		<dc:creator>Kara Swisher</dc:creator>
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		<guid isPermaLink="false">http://kara.allthingsd.com/?p=14955</guid>
		<description><![CDATA[How much is BoomTown and everyone else in Silicon Valley trying to nab a copy of Ben Mezrich's likely-to-be-entirely-made-up-but-who-cares tale of dirty doings at Facebook?

Muchety-much! But, so far I have come up peanuts in grabbing an early copy of the work of "fact"-ion--titled "The Accidental Billionaires: The Founding of Facebook, A Tale of Sex, Money, Genius and Betrayal"--which is set to come out July 14, along with a movie later.

Facebook is not pleased, of course, and will likely be challenging Mezrich's work as specious dreck, but here's my own list of 10 completely made-up, utterly fabricated, just-call-me-Jayson-Blair facts that should be in the book.]]></description>
			<content:encoded><![CDATA[<p><a href="http://kara.allthingsd.com/files/2009/06/accidentalbillionairesjpg.jpeg"><img src="http://kara.allthingsd.com/files/2009/06/accidentalbillionairesjpg-201x300.jpg" alt="accidentalbillionairesjpg" title="accidentalbillionairesjpg" width="201" height="300" class="alignright size-medium wp-image-14962" /></a></p>
<p>How much is BoomTown and everyone else in Silicon Valley trying to nab a copy of Ben Mezrich&#8217;s likely-to-be-entirely-made-up-but-who-cares tale of dirty doings at Facebook?</p>
<p><em>Muchety-much!</em> So much so that I called all my book industry contacts&#8211;hey, I am a <em>published</em> author, ya know!&#8211;even though I have not actually completed reading a book since the Internet started and gave me permanent attention deficit disorder.</p>
<p>But, so far I have come up peanuts in grabbing an early copy of Mezrich&#8217;s tome, &#8220;The Accidental Billionaires,&#8221; which is set to come out July 14.</p>
<p>Facebook is not pleased, of course, and will likely be challenging Mezrich&#8217;s work as specious dreck. But the drama around the book should be interesting, to say the least.</p>
<p>More so, since this week also came news that actors <a href="http://news.cnet.com/8301-13577_3-10271662-36.html">Michael Cera and Shia LaBeouf</a> are being considered to play founder and CEO Mark Zuckerberg and that <a href="http://www.variety.com/article/VR1118005289.html?categoryid=13&#038;cs=1&#038;nid=2854">David Fincher</a>, the director of the lugubrious Brad Pitt snoozer, &#8220;The Curious Case of Benjamin Button,&#8221; is &#8220;attached&#8221; to the movie version.</p>
<p>Even better: &#8220;West Wing&#8221; creator  Aaron Sorkin will pen it and actor Kevin Spacey will produce the Columbia Pictures film, which will be called &#8220;The Social Network.&#8221;</p>
<p>Well, Hollywood sure came up with an original title!</p>
<p>It certainly does not signal the juiciness of the proposal for the book&#8211;which did manage to leak out last year&#8211;with a lot of tale tales in it that seem to have pretty much tracked on its oddly purple subtitle of &#8220;The Founding of Facebook: A Tale of Sex, Money, Genius and Betrayal.&#8221;</p>
<p>The cover&#8211;which you can see on the book&#8217;s<a href="http://www.facebook.com/pages/The-Accidental-Billionaires-by-Ben-Mezrich/64052888061"> Facebook page</a> (the delicious gall of Mezrich!)&#8211;features a spilled martini glass and a red bra flung nearby.</p>
<p>Martinis? Red bras? Sex? Facebook? <em>Really?</em></p>
<p><a href="http://kara.allthingsd.com/files/2009/06/n7619159821_302504_4798jpg.jpeg"><img src="http://kara.allthingsd.com/files/2009/06/n7619159821_302504_4798jpg-225x300.jpg" alt="n7619159821_302504_4798jpg" title="n7619159821_302504_4798jpg" width="225" height="300" class="alignleft size-medium wp-image-14964" /></a></p>
<p>Obviously, Mezrich has not actually met Zuckerberg, who is a very nice geekish young man, but who has approximately the sex appeal of a rack of Facebook servers.</p>
<p>Powerful yes! Spockish? Yes! Sexy? Um, no, no, no.</p>
<p>I will not even begin to parse the red bra thing, although I am attributing the martinis to stylish former COO (and now MySpace CEO) Owen Van Natta.</p>
<p>But, apparently, the sex part seems to have to do with Zuckerberg starting the company with others while an undergrad at Harvard University, as a scheme to meet some ladies.</p>
<p>I would say there are easier ways to attract the womenfolk&#8211;not that I could give tips or anything&#8211;but whatever!</p>
<p>Thus, since I cannot get my mitts on the book (<em>yet!</em>), here&#8217;s my list of 10 completely made-up, utterly fabricated, just-call-me-Jayson-Blair things that should be in the book.</p>
<p><strong>10.)</strong> Facebook was actually going to be called OnlyPrettyLadyFacebook, but cooler heads prevailed.</p>
<p><a href="http://kara.allthingsd.com/files/2009/06/rusu1842jpg.jpeg"><img src="http://kara.allthingsd.com/files/2009/06/rusu1842jpg-194x300.jpg" alt="rusu1842jpg" title="rusu1842jpg" width="194" height="300" class="alignright size-medium wp-image-14965" /></a></p>
<p><strong>9.)</strong> The Wall? A clever plot by Zuckerberg to build his online service on a fascist construct, touting his hegemony over all he surveyed.</p>
<p>Wait, that actually happened, and now some Russians are even investors.</p>
<p>Long live the Zuckrepublic of Palo Alto!</p>
<p><strong>8.)</strong> Reason for stealing, <em>oops</em>, borrowing, <em>oops</em> again, completely separately developing an exact replica of ConnectU social network at Harvard:</p>
<p>The Olympically muscle-headed Winklevoss twins used to beat up the brainy Zuckerberg on his way back to the dorm, prompting a &#8220;Revenge of the Nerds&#8221; plot line.</p>
<p><strong>7.)</strong> Facebook&#8217;s Beacon advertising? <em>All</em> Randi Zuckerberg&#8217;s idea, so she could find out what she was getting for her birthday from her billionaire-on-paper brother.</p>
<p><strong>6.)</strong> Zuckerberg&#8217;s famous flip-flops were made in China under dubious working conditions. Wait, that&#8217;s true too.</p>
<p><a href="http://kara.allthingsd.com/files/2009/06/bejaminjpg.jpeg"><img src="http://kara.allthingsd.com/files/2009/06/bejaminjpg-250x185.jpg" alt="bejaminjpg" title="bejaminjpg" width="250" height="185" class="alignleft size-medium wp-image-14966" /></a></p>
<p><strong>5.)</strong> The 20-something Zuckerberg is actually 93 years old, a real-life version of Benjamin Button, which would explain the social awkwardness and staring-into-space-sometimes thing.</p>
<p><strong>4.)</strong> The no-breast-feeding-pictures controversy pretty much proves no one is interested in bras or, more precisely, what goes in them at Facebook.</p>
<p><strong>3.)</strong> COO Sheryl Sandberg is a cyborg sent to Facebook from Google for purposes of infiltration. She and her crafty sidekick, Elliott Schrage, will become self-aware in 2012 and hunt down Zuckerberg in a thrilling chase that will also become a movie.</p>
<p><strong>2.)</strong> The sex, drugs and rock-and-roll stuff actually all took place at MySpace, which really pisses off certifiably dashing co-Founders Chris DeWolfe and Tom Anderson because, once again, Zuckerberg stole their mojo!</p>
<p><a href="http://kara.allthingsd.com/files/2009/06/superpoke_270x228.gif"><img src="http://kara.allthingsd.com/files/2009/06/superpoke_270x228-250x211.gif" alt="superpoke_270x228" title="superpoke_270x228" width="250" height="211" class="alignright size-medium wp-image-14967" /></a></p>
<p><strong>1.)</strong> This work of fiction, <em>oops</em>, &#8220;fact&#8221;-ion, <em>oops</em> again, nonfiction, is probably not going to sell many copies because it will mysteriously be uploaded in its entirety by a widget that will distribute it free to Facebook&#8217;s 200 million plus users while simultaneously SuperDuperPoking Mezrich, by throwing <em>real</em> sheep at him.</p>
<p>Don&#8217;t say I didn&#8217;t warn you, Ben.</p>
<p>(By the way, here is an extra for you: The $15 billion valuation for Facebook, along with all the other Web 2.0 ones? Totally true. Just ask any VC.)</p>
<p>And, in case anyone was wondering what the real Facebook looks like, here is a <a href="http://kara.allthingsd.com/20090615/kara-tours-the-new-facebook-hq-and-gets-ripped-the-uncut-video">recent video tour I did</a> of its new HQ in Palo Alto, Calif.:</p>
<p><div class="video-wsj"><object width="640" height="360"><param name="movie" value="http://s.wsj.net/media/swf/microPlayer.swf"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><param name="flashvars" value="videoGUID=924E04C4-4686-4206-897E-6B0E1454CAEE&playerid=4001&plyMediaEnabled=1&configURL=http://m.wsj.net/video-players/&autoStart=false" base="http://s.wsj.net/media/swf/"name="microflashPlayer"></param><embed src="http://s.wsj.net/media/swf/microPlayer.swf" bgcolor="#FFFFFF" flashVars="videoGUID={924E04C4-4686-4206-897E-6B0E1454CAEE}&playerid=4001&plyMediaEnabled=1&configURL=http://m.wsj.net/video-players/&autoStart=false" base="http://s.wsj.net/media/swf/" name="microflashPlayer" width="640" height="360" seamlesstabbing="false" type="application/x-shockwave-flash" swLiveConnect="true" pluginspage="http://www.macromedia.com/shockwave/download/index.cgi?P1_Prod_Version=ShockwaveFlash"></embed><br />[ See post to watch video ]</div></object></p>
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		<title>The Winklevoss Variations</title>
		<link>http://allthingsd.com/20090210/the-winklevoss-variations/</link>
		<comments>http://allthingsd.com/20090210/the-winklevoss-variations/#comments</comments>
		<pubDate>Wed, 11 Feb 2009 00:57:28 +0000</pubDate>
		<dc:creator>John Paczkowski</dc:creator>
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		<guid isPermaLink="false">http://digitaldaily.allthingsd.com/?p=12808</guid>
		<description><![CDATA[[ See post to watch video ]]]></description>
			<content:encoded><![CDATA[<p><div class="video-wsj"><embed src="http://s.wsj.net/media/swf/microPlayer.swf" bgcolor="#FFFFFF" flashVars="videoGUID={10721532001}&playerid=4001&plyMediaEnabled=1&configURL=http://m.wsj.net/video-players/&autoStart=false" base="http://s.wsj.net/media/swf/" name="microflashPlayer" width="320" height="240" seamlesstabbing="false" type="application/x-shockwave-flash" swLiveConnect="true" pluginspage="http://www.macromedia.com/shockwave/download/index.cgi?P1_Prod_Version=ShockwaveFlash"></embed><br />[ See post to watch video ]</div></p>
]]></content:encoded>
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		<title>Winklevosses AboutFacebooked!</title>
		<link>http://allthingsd.com/20080626/winklevosses-aboutfacebooked/</link>
		<comments>http://allthingsd.com/20080626/winklevosses-aboutfacebooked/#comments</comments>
		<pubDate>Thu, 26 Jun 2008 07:02:35 +0000</pubDate>
		<dc:creator>Kara Swisher</dc:creator>
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		<guid isPermaLink="false">http://kara.allthingsd.com/?p=2227</guid>
		<description><![CDATA[Ah, the Winklevosses!

They lost.

In court, I mean, not in rowing!

But I am sad to say BoomTown is deeply uninterested in the long-running legal struggle between Facebook Founder and CEO Mark Zuckerberg and the hot social-networking site and the group affiliated with ConnectU--heretofore referred to by BoomTown as NotFacebook.]]></description>
			<content:encoded><![CDATA[<p>Ah, the Winklevosses!</p>
<p>They lost.</p>
<p>In court, I mean, not in rowing!</p>
<p>But I am sad to say BoomTown is deeply uninterested in the long-running legal struggle between Facebook Founder and CEO Mark Zuckerberg and the hot social-networking site and the group affiliated with ConnectU&#8211;heretofore referred to by BoomTown as <em>NotFacebook</em>.</p>
<p><a href="http://kara.allthingsd.com/files/2008/06/picture-50.jpg"><img src="http://kara.allthingsd.com/files/2008/06/picture-50.jpg" alt="" title="picture-50" width="71" height="100" class="alignright size-full wp-image-2228" /></a></p>
<p>Namely the Winklevoss brothers, Cameron and Tyler (and also another guy, not a Winklevoss), who are world-class rowers.</p>
<p>Without going into the gory details, they settled a lawsuit in February that centered on how Facebook was founded and whether or not Zuckerberg stole code to create it while an undergrad at Harvard University.</p>
<p>And then the Winklevosses claimed that that settlement in the endless legal battle should be voided because of fraud and reopened.</p>
<p>The ConnectU side claimed that it had found some &#8220;smoking&#8221; gun instant messages that proved their case.</p>
<p><em>Whatever.</em></p>
<p>The federal judge in San Jose decided to let Facebook enforce the settlement anyway (but, because there are lawyers involved, there will probably be yet another bite at the apple).</p>
<p>In any case, BoomTown fully enjoyed the take-no-prisoners PR stylings of Facebook, now under uber-PR guru Elliot Schrage and, thus, we render the statement about the win here in its entirety:</p>
<blockquote><p>We are happy that Judge Ware enforced the agreement settling our dispute with the ConnectU founders. ConnectU&#8217;s founders were represented by six lawyers and a professor at Wharton Business School when they signed the Settlement Agreement. The ConnectU founders understood the deal they made, and we are gratified that the Court rejected their false allegations of fraud. Their challenge was simply a case of &#8216;buyers remorse,&#8217; as described by the Boston Court earlier this month.</p>
<p>We were disappointed that we had to litigate the settlement, as we believed we were caught in the middle of a fee dispute between ConnectU&#8217;s founders and its former counsel. Nevertheless, we can now consider this chapter closed and wish the Winklevoss brothers the best of luck in their future endeavors.&#8221;</p></blockquote>
<p>As in, don&#8217;t let the door hit your Winklevii on your way out!</p>
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		<title>Mark &#039;Sorry&#039; Zuckerberg&#039;s Beacon Memo: BoomTown Decodes It, So You Don’t Have To!</title>
		<link>http://allthingsd.com/20071206/mark-sorry-zuckerbergs-beacon-memo-boomtown-decodes-it-so-you-don%e2%80%99t-have-to/</link>
		<comments>http://allthingsd.com/20071206/mark-sorry-zuckerbergs-beacon-memo-boomtown-decodes-it-so-you-don%e2%80%99t-have-to/#comments</comments>
		<pubDate>Thu, 06 Dec 2007 08:10:42 +0000</pubDate>
		<dc:creator>Kara Swisher</dc:creator>
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		<guid isPermaLink="false">http://kara.allthingsd.com/20071206/mark-sorry-zuckerbergs-beacon-memo-boomtown-decodes-it-so-you-don%e2%80%99t-have-to/</guid>
		<description><![CDATA[Yesterday, Facebook Founder and CEO Mark Zuckerberg posted a major mea culpa blog post about the controversy around its Beacon ad product, which can track your purchases on some external sites and send the information back to your profile's news feed.

As usual, BoomTown asked for the obligatory on-the-record interview with Zuckerberg, but he still has not invited us over to get social at his social networking HQ in Palo Alto, Calif. So while we're waiting by the phone, we need to get busy.

Thus, we continue our thankless quest to decode all memos from Internet moguls (BoomTown speaks fluent Web 2.0 double talk).]]></description>
			<content:encoded><![CDATA[<p>Yesterday, Facebook Founder and CEO Mark Zuckerberg posted a <a href="http://blog.facebook.com/blog.php?post=7584397130">major mea culpa blog post</a> about <a href="http://digitaldaily.allthingsd.com/20071205/fiascobook-redux/">the controversy around its Beacon ad product</a>, which can track your purchases on some external sites and send the information back to your profile&#8217;s news feed.</p>
<p><img src='http://kara.allthingsd.com/files/2007/12/renderclean.jpeg' alt='zuck' class='centered'/></p>
<p>As usual, BoomTown asked for the obligatory on-the-record interview with Zuckerberg (pictured above), but he still has not invited us over to get social at his social-networking HQ in Palo Alto, Calif. So while we&#8217;re waiting by the phone, we need to get busy.</p>
<p>Thus, we continue our thankless quest to decode all memos from Internet moguls (BoomTown speaks fluent Web 2.0 double talk).</p>
<p>(In October, we did this for <a href="http://kara.allthingsd.com/20071016/aol-layoffs-memo-boomtown-decodes-the-memo-so-you-dont-have-to/">Randy Falco&#8217;s memo about the AOL layoffs</a>. And, back in late August, we also <a href="http://kara.allthingsd.com/20070830/yahoo-held-hostage-day-48-boomtown-decodes-the-memo-so-you-dont-have-to/">translated a memo from Yahoo President Sue Decker</a> about its reorganization of management.)</p>
<p>So here&#8217;s my take on Mark&#8217;s take:</p>
<p><strong>Mark wrote:</strong> <em>Thoughts on Beacon</em></p>
<p><strong>Translation:</strong> Facebook PR head Brandee Barker&#8217;s thoughts on Beacon, so Valleywag&#8217;s Owen Thomas will stop pestering her.</p>
<p><strong>Mark wrote:</strong> <em>About a month ago, we released a new feature called Beacon to try to help people share information with their friends about things they do on the Web. We&#8217;ve made a lot of mistakes building this feature, but we&#8217;ve made even more with how we&#8217;ve handled them. We simply did a bad job with this release, and I apologize for it. While I am disappointed with our mistakes, we appreciate all the feedback we have received from our users. I&#8217;d like to discuss what we have learned and how we have improved Beacon.</em></p>
<p><strong>Translation:</strong> I thought I was the CEO&#8230;<em>b#*t#*</em>, as my business card used to read, but it turns out maybe not so much. I would surely like to zombie-bite those annoying reporters, the whiny privacy advocates and those cut-and-run advertisers, who obviously don&#8217;t understand my $15 billion worth of genius. I wonder if I could find a way to blame the Winklevosses, who have the audacity to sue me for stealing their original social networking idea at Harvard!</p>
<p><strong>Mark wrote:</strong> <em>When we first thought of Beacon, our goal was to build a simple product to let people share information across sites with their friends. It had to be lightweight so it wouldn&#8217;t get in people&#8217;s way as they browsed the Web, but also clear enough so people would be able to easily control what they shared. We were excited about Beacon because we believe a lot of information people want to share isn&#8217;t on Facebook, and if we found the right balance, Beacon would give people an easy and controlled way to share more of that information with their friends.</em></p>
<p><strong>Translation:</strong> When we first thought of Beacon, we thought it would make <em>bank</em> to backfill that kooky valuation, so Steve Ballmer would stop texting me &#8220;Where&#8217;s the beef, dude?&#8221; hourly. By lightweight, we meant we were actually thinking of a sneaky way of tricking users into becoming digital billboards without realizing it. By easy and controlled, we meant an easy way to control their brains into thinking this was a good thing.</p>
<p><strong>Mark wrote:</strong> <em>But we missed the right balance. At first we tried to make it very lightweight so people wouldn&#8217;t have to touch it for it to work. The problem with our initial approach of making it an opt-out system instead of opt-in was that if someone forgot to decline to share something, Beacon still went ahead and shared it with their friends. It took us too long after people started contacting us to change the product so that users had to explicitly approve what they wanted to share. Instead of acting quickly, we took too long to decide on the right solution. I&#8217;m not proud of the way we&#8217;ve handled this situation and I know we can do better.</em></p>
<p><strong>Translation:</strong> But we lost our balance sitting on the big pile of money we got from Microsoft and that richer-than-rich Asian billionaire. To repeat: Lightweight=sneaky. Since most of our users are too busy popping each others zits or sending digital teddy bears or being cartoonified, we were shocked that they were actually paying attention to our efforts to milk their interests in, say, mountain biking or spelunking, as if they were cows and we were Old MacDonald. E-I-E-I-Oops.</p>
<p><strong>Mark wrote:</strong> <em>Facebook has succeeded so far in part because it gives people control over what and how they share information. This is what makes Facebook a good utility, and in order to be a good feature, Beacon also needs to do the same. People need to be able to explicitly choose what they share, and they need to be able to turn Beacon off completely if they don&#8217;t want to use it.</em></p>
<p><strong>Translation:</strong> Facebook has succeeded so far, in part because people are simultaneously natural stalkers and shameless exhibitionists. So we thought they&#8217;d jump at the chance to tell all their friends they had bought, say, a year&#8217;s supply of Viagra or downloaded songs from Air Supply or ordered several pairs of Spanx.</p>
<p><strong>Mark wrote:</strong> <em>This has been the philosophy behind our recent changes. Last week we changed Beacon to be an opt-in system, and today we&#8217;re releasing a privacy control to turn off Beacon completely. You can find it here. If you select that you don&#8217;t want to share some Beacon actions or if you turn off Beacon, then Facebook won&#8217;t store those actions even when partners send them to Facebook.</em></p>
<p><strong>Translation:</strong> Philosophy? All those Harvard philosophy majors now work for <em>me</em> in customer service. Opt-in, opt-out. If we say it fast over and over again, users will hopefully get really dazed and confused and just lay down and accept their ultimate fate as target practice for marketers. More to the point, I just said we will <em>still</em> receive information on all your purchases and I hope you did not notice that. Opt-in-opt-out-opt-in-opt-out-opt-in-opt-out. Are you getting sleepy yet?</p>
<p><strong>Mark wrote:</strong> <em>On behalf of everyone working at Facebook, I want to thank you for your feedback on Beacon over the past several weeks and hope that this new privacy control addresses any remaining issues we&#8217;ve heard about from you.</em></p>
<p><strong>Translation:</strong> And we have made it <a href="http://www.facebook.com/privacy.php?view=unconfirmed_actions">extra special confusing to change your Beacon settings</a>, because of all the whining from you teeny brains, which is really annoying to us big brains here at Facebook. To get back at you, we&#8217;re hard at work thinking up all sorts of new privacy violations you&#8217;ll never be able to understand!</p>
<p><strong>Mark wrote:</strong> <em>Thanks for taking the time to read this.</em></p>
<p><strong>Translation:</strong> You may return to your regularly scheduled SuperPoking.</p>
<p><strong>Mark wrote:</strong> <em>Mark</em></p>
<p><strong>Translation:</strong> Beacon fiasco aside, I&#8217;m still the <em>CEO b#*#*</em>, no matter how many times Swisher mocks my flip-flops.</p>
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		<title>More on Zuckerberg&#039;s Legal Woes</title>
		<link>http://allthingsd.com/20071127/more-on-zuckerbergs-legal-woes/</link>
		<comments>http://allthingsd.com/20071127/more-on-zuckerbergs-legal-woes/#comments</comments>
		<pubDate>Tue, 27 Nov 2007 17:25:11 +0000</pubDate>
		<dc:creator>Kara Swisher</dc:creator>
				<category><![CDATA[News]]></category>
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		<category><![CDATA[02138]]></category>
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		<category><![CDATA[Kara Swisher]]></category>
		<category><![CDATA[Luke O'Brien]]></category>
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		<category><![CDATA[social networking]]></category>
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		<guid isPermaLink="false">http://kara.allthingsd.com/20071127/more-on-zuckerbergs-legal-woes/</guid>
		<description><![CDATA[Don&#8217;t miss this very thorough article by Luke O&#8217;Brien from 02138, an independent magazine aimed at Harvard University alumni, that looks very closely in its current issue at the controversy (and lawsuits) related to the founding of this year&#8217;s hot Silicon Valley start-up, Facebook. While Facebook execs have pooh-poohed all the noise, including legal action [...]]]></description>
			<content:encoded><![CDATA[<p>Don&#8217;t miss this <a href="http://www.02138mag.com/magazine/article/1724.html">very thorough article by Luke O&#8217;Brien from 02138</a>, an independent magazine aimed at Harvard University alumni, that looks very closely in its current issue at the controversy (and lawsuits) related to the founding of this year&#8217;s hot Silicon Valley start-up, Facebook.</p>
<p><img src='http://kara.allthingsd.com/files/2007/11/1126.jpg' alt='02138' /></p>
<p>While Facebook execs have pooh-poohed all the noise, including legal action in Boston taken by photogenic twins named Winklevoss&#8211;mostly calling it sour grapes on the part of failed competitors&#8211;the collection of stories about founder Mark Zuckerberg&#8217;s behavior as a fledgling entrepreneur will surely raise some eyebrows, if only for the manner in which he defends himself in various statements he has made.</p>
<p>Which can pretty much be summed up as: Tough luck!</p>
<p><span id="more-67404"></span></p>
<p>Here&#8217;s a choice selection from Zuckerberg&#8217;s letter to Harvard&#8217;s Administration Board, the college&#8217;s disciplinary committee that first looked into his tussle over work he did&#8211;or, more precisely, did not do&#8211;for the Winklevosses&#8217; ConnectU service:</p>
<blockquote><p>I try not to get involved with other students&#8217; ventures, since they are generally too time-consuming and don&#8217;t provide me with enough room to be creative and do my own thing. I do, however, make an effort to use my skills to help out those who are trying to develop their own ideas for Websites&#8230; Perhaps there was some confusion, and I can see why they might be upset that I released a successful Website, while theirs was still unfinished, but I definitely didn&#8217;t promise them anything&#8230; Frankly, I&#8217;m kind of appalled that they&#8217;re threatening me after the work I&#8217;ve done for them free of charge, but after dealing with a bunch of other groups with deep pockets and good legal connections including companies like Microsoft, I can&#8217;t say I&#8217;m surprised. I try to shrug it off as a minor annoyance that whenever I do something successful, every capitalist out there wants a piece of the action.&#8221;</p></blockquote>
<p>As the legal battle works its way through the system, mostly related to the question of whether Zuckerberg illegally stole the basic idea for Facebook, the one carry-away from the article is still astonishing&#8211;and also a little disturbing: Just how many enemies he has collected at such a young age.</p>
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		<title>ConnectU&#039;s Disconnection With Reality</title>
		<link>http://allthingsd.com/20070727/connectus-disconnection-with-reality/</link>
		<comments>http://allthingsd.com/20070727/connectus-disconnection-with-reality/#comments</comments>
		<pubDate>Fri, 27 Jul 2007 07:02:37 +0000</pubDate>
		<dc:creator>Kara Swisher</dc:creator>
				<category><![CDATA[News]]></category>
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		<guid isPermaLink="false">http://kara.allthingsd.com/20070727/connectus-disconnection-with-reality/</guid>
		<description><![CDATA[The story about Facebook founder and CEO Mark Zuckerberg stiffing another group of entrepreneurs at Harvard for whom he did some early programming work for a nascent social network called ConnectU and turning around and creating his own service has long been making the rounds in Silicon Valley. Sure, it seems a bit, I don&#8217;t [...]]]></description>
			<content:encoded><![CDATA[<p>The story about Facebook founder and CEO Mark Zuckerberg stiffing another group of entrepreneurs at Harvard for whom he did some early programming work for a nascent social network called ConnectU and turning around and creating his own service has long been making the rounds in Silicon Valley.</p>
<p><img src='http://kara.allthingsd.com/files/2007/05/images9.jpeg' alt='facebook' /><img src='http://kara.allthingsd.com/files/2007/06/images10.jpeg' alt='zuckerberg' /></p>
<p>Sure, it seems a bit, I don&#8217;t know, icky for Zuckerberg to have programmed for ConnectU and then to have started his own social network. But I am with the judge who ruled yesterday in a hearing for a ConnectU lawsuit against Zuckerberg that there needed to be more evidence that the young entrepreneur had actually stolen its code and ideas.</p>
<p>&#8220;Claims must have a factual basis,&#8221; said Massachusetts Federal Judge Douglas Woodlock, in asking for a revised complaint with more meat on it beyond: <em>Zuckerberg stole our marbles!</em></p>
<p><span id="more-67033"></span></p>
<p>ConnectU&#8217;s photogenic but simply ridiculous founders Tyler and Cameron Winklevoss&#8211;no, I am not making the twin brothers&#8217; name up&#8211;and also Divya Narendra have been attacking Zuckerberg and other early Facebook employees for years. And their press-conference grandstanding after the hearing earlier this week makes them seem even more silly.</p>
<p>And saying they needed to hold a press circus to respond to the spate of media inquiries, because the Winklevoss brothers needed to concentrate on their rowing aims to get to the Olympics (here one truth&#8211;they seem to be very good rowers), sent the whole affair straight to goofyville.</p>
<p>My take, given that ConnectU has about 100,000 users and Facebook 30 million, is that the Winklevosses should go for the gold in the Olympics and stop trying to shake down Zuckerberg for some.</p>
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