Facebook is changing the structure of its company stock to a dual-class system, a move that hints the company may be looking toward an initial public offering--even though it says it has no plans to do so yet.
Here's how it works. Existing Facebook shareholders currently have Class A stock. That'll be converted to Class B stock, which has 10 times the voting power of Class A. Should those shareholders sell their stock when Facebook goes public, they'll be converted back into Class A stock--otherwise, they'll stay the way they are.
The story was first reported by The Wall Street Journal, which added the detail that this stock structure change will give founder and CEO Mark Zuckerberg more power unless he opts to sell stock during an IPO. But while Zuckerberg and other executives have said that they eventually plan to take Facebook public, they continue to say that there are no concrete plans for it. Two years ago, Zuckerberg said that it was "years out."
"This revision to the stock structure should not be construed as a signal the company is planning to go public," a statement from Facebook read. "Facebook has no plans to go public at this time."
After contributing to the destruction of productivity at work by helping Facebook through its early days, Dustin Moskovitz and Justin Rosenstein are launching a new service aimed to make people and businesses productive once again. The company, Asana, announced details today on its funding. However, details on the service itself are still vague.
Here's what we know: The company just raised a $9 million venture round lead by Benchmark Capital with additional funding from Andreessen Horowitz. Marc Andreessen is an advisor and will not be on the board. Benchmark's Matt Cohler, formerly at Facebook himself, will be.
The rest is borderline hand waving. I talked with Moskovitz and Rosenstein this morning about their vision, which anyone who's ever worked can relate to. The product that embodies this vision, though, we don't know much about.
Rosenstein told me, "We started Asana to change the way people manage information, and speed up work by an order of magnitude." They're going to help individuals and teams become, "vastly more productive," he said.
We want more, of course. Rosenstein: "We're not trying to be stealthy, but it's tricky to describe."
Try, please? Here's a bit more: Asana will improve work by solving problems of information transparency. With Asana's hosted service, status meetings will be unnecessary. Organizing yourself and communicating what you're doing should be the same act. We'll fix the explosion of information that knowledge workers need to manage. It will be a software solution to a human problem.
Asana is answering the question, "How would you design productivity for the Web from the ground up?" The founders believe they have hit upon the necessary data and interaction model to improve all of our jobs. You can read more on the Asana blog, if you dare.
We'll believe it when we see it, won't we?
Rosenstein did say the Asana team is using the product internally. He also said that Asana will be a Web app, but that they're trying to provide software-type speed and responsiveness from it. Good.
The product is being built on a new programming system, called Lunacript. The platform itself will be open to users, so they can code in their own business processes. However, all apps will be hosted by Asana, not federated, as Google Wave allows.
When I get a demo, I'll report back. Until then, I don't hear anything that leads me to believe that Google Apps, Microsoft Office, and Lotus Notes have much to worry about. I would very much like to be proven wrong.
Bonus fact: I asked Moskovitz how he felt about Jurassic Park actor Joseph Mazzello being cast to play him in "The Social Network" movie about Facebook. "We are both scared of velociraptors," he said. "That's about all I know."
No, this isn't The Onion.
But just look at that headline and wonder how it could possibly be true.
Well, according to Newsday, Canadian teen sensation Justin Bieber was due to conduct an album signing at the Roosevelt Field mall in Garden City, N.Y.
It seems that thousands of teenage girls turned up to mob the wondrous teen hope, a happening perhaps so frightening that Bieber did not turn up.
The Nassau County police became rather concerned that the crowd might break the glass in store windows with its shrieking. (The official word seems to have been "unruly," but teenage girls are never really that.)
So they asked a senior vice president from Island Def Jam Records (Bieber's record label), James A. Roppo, to do what record label executives often do when solving a difficult situation: tweet.
However, he is alleged to have not complied with this endearing request and thus found himself arrested, pending charges that might, according to the police, comprise criminal nuisance, endangering the welfare of a minor, and obstructing government administration.
Kevin Smith of the Nassau County Police told the AP: "We asked for his help in getting the crowd to go away by sending out a Twitter message. By not cooperating with us, we feel he put lives in danger and the public at risk."
What is somewhat peculiar is that a tweet was sent from Justin Bieber's account around the time of the arrest, reading: "they are not allowing me to come into the mall. if you don't leave, I and my fans will be arrested, as the police just told us."
Bieber followed this message up with another tweet pleading for the high-pitched wailers to disperse, just three minutes later.
All this occurred Friday. And, thanks to Bieber himself, I have embedded YouTube footage of the melee at the mall.
Bieber posted a link to this footage Saturday and tweeted, "wow. this upsets me. the mall should of had proper security. They wouldnt let me in! Gotta make this right 4 the fans."
Well, yes, it should of. Just look at the worried faces of the parents. Just listen to the screams of the aficionadas. This is the kind of nightmare many will have experienced after a large tub of dulce de leche eaten well past midnight.
I cannot imagine what Roppo might have said to the police in order to incite their wrath. However, looking at this footage, I suspect that something like "Look at these people!!!! They're outta their minds!!! You really think a tweet is going to stop them from screaming?!!!" might have been part of the dialogue.
It is also pleasantly reassuring that the mall staff appears, near the end of the footage, to have resorted to analog crowd dispersal means. Yes, someone found a loudhailer.
However, I can find no record of any arrests from the scene other than Roppo's. And certainly, no one else appears to have been arrested for refusing to tweet.
Therefore, this truly seems to be a world first. One can only look forward to the day when someone's Facebook friends cause them to be arrested for not updating their status.
Offerpal Media, one of the companies at the center of a bitter dispute over misleading advertisements on social networks, on Thursday launched a revised policy designed to "forbid any offers that are misleading, deceptive or otherwise objectionable."
Companies like Offerpal are enlisted by many of the big gaming companies built on social networks like Facebook; they help those companies make money by letting game players earn points and virtual goods by completing offers and surveys rather than paying real money.
They make a lot of money doing so. So do the game companies, like Zynga and Playfish (recently acquired by Electronic Arts), which in turn advertise heavily on the likes of Facebook to recruit new players.
But then the negative press started to emerge: many of these "free" offers and surveys actually had hidden costs attached to them that weren't adequately disclosed. Some companies like Zynga started backtracking and going so far as to ban offers altogether. Facebook and MySpace, the two biggest social-network platforms, made very public revisions to their policies. But the controversy continued, and both Facebook and Zynga were named as defendants in a federal class-action lawsuit.
Offerpal, which replaced its CEO amid the controversy, has now come out and said that while it's setting a basic standard for advertisement quality, game makers and publishers enlisting Offerpal's services can opt to be even more stringent. "Offerpal will rate all offers by quality and allow its partners to select a quality level of compliance ranging from 'Level 1' for minimal restrictions to 'Level 5' for highly conservative restrictions," a release explained.
Will the new restrictions keep angry bloggers and consumers--not to mention lawmakers--at bay? More importantly, are they going to amount to anything more than smoke and mirrors? We'll see.
YouTube might still reign supreme in online video, but the big surprise coming out of Nielsen's VideoCensus release on Thursday is that Facebook is now the world's third most popular place to view video online.
According to Nielsen's latest VideoCensus numbers, which look at the number of video views in October, YouTube serviced over 6.6 billion streams. In a distant second, Hulu offered up over 632 million video streams. But it was Facebook with over 217 million streams in October that easily beat out Bing, Yahoo, and several other online sites. In September, Facebook was ranked tenth in total streams.
In October, Facebook placed second in total number of unique viewers: over 31.5 million. YouTube had almost 106 million unique viewers during October. Hulu placed fifth with 13.4 million viewers.
According to Nielsen, the amount of time Web users spent viewing videos on social-networking sites increased 98 percent year over year. In October 2008, users watched 503.8 million minutes of video; they watched 999.4 million video minutes in October this year. That growth far outpaced growth in number of online video streams as a whole, which grew 26 percent year over year.
Facebook has moved its way up to third place.
(Credit: Nielsen)"During the past year, online video viewing has become central to the Web experience," Nielsen Vice President of Media Analytics Jon Gibs said in a statement. "In conjunction with this increase, we are seeing remarkable growth in video viewing on social networking sites and it is only natural that these two trends would converge in consumers' minds, making sites like Facebook and Myspace.com, increasingly important distribution points for both consumer and professionally generated video."
But it was Facebook, not MySpace, that led the way in video streams on social-networking sites, nearly tripling MySpace's 85.2 million streams during October.
According to Nielsen, the "total time spent viewing video on Facebook" grew by 1,840 percent year over year. The number of unique viewers grew 548 percent over the same period. Total streams increased by 987 percent year over year.
"Facebook's rapid growth in online video during the last year illustrates the site's evolution from simply a communications focused tool to a media portal," Gibs said. "Social networking sites are evolving from a venue for catching up with friends to a platform for personal expression, allowing consumers to share their experiences in the full variety of content formats available online."
CheckMySite, a company that monitors uptime of Web sites, announced on Thursday that Twitter still has some serious performance issues.
CheckMySite continually monitored Twitter's uptime over the past 12 months and found that Twitter wasn't able to maintain an effective uptime rate during that period, though it did perform better in some months rather than others.
CheckMySite's report found that Twitter's best uptime between October 2008 through the end of October 2009, was in December 2008, when the site was up 99.97 percent of the time. During Twitter's worst month, August 2009, the its site was up just 99.15 percent of the time.
Without any comparison, Twitter's figures probably won't mean much. Realizing that, CheckMySite compared the social network's uptime to Facebook and MySpace. According to CheckMySite, both Facebook and MySpace "have an uptime of 100 percent, meaning there is virtually no occurrence of frustrated access among visitors."
"Any company that has an uptime statistic of less than 99.9 percent should definitely work to improve the situation," Andrew Stock, CheckMySite's international sales director said in a statement.
Twitter has suffered from uptime issues almost since its founding. For a while, it was so bad that some postulated that it could lead to the site's downfall. In recent months, Twitter's uptime seemed to improve, though it experienced a few snags along the way. Evidently, things haven't been as good as some thought.
Twitter did not immediately respond to request for comment.
Chase announced Monday a partnership with Facebook to power the finance company's inaugural "Community Giving" campaign, which will allocate a total of $5 million to small, local nonprofits voted on by Facebook members.
The campaign takes the form of--you guessed it--a Facebook Platform application, in which members can choose their favorite of more than 500,000 nonprofits. Naturally, then, they're encouraged to use the hallowed "social graph" to encourage their friends to do so as well.
The winner gets $1 million in a grand-prize announcement slated for February 1; five runners-up get $100,000 apiece, and then the entire top 100 receives $25,000 apiece. There's an advisory board consisting of celebrities and Chase execs, as well as Facebook vice president of communications Elliot Schrage.
The publicity effort for Community Giving, which reached out to celebrity Twitter users in both the entertainment and nonprofit space in addition to the mainstream press to spread the word, says it's been an early success: over 12,000 Facebook members signed on in the first day.
That's not quite as many as the hundreds of thousands who rallied to support a prospective Stephen Colbert presidential campaign in the matter of a week, or the tens of thousands who opted to follow actor Neil Patrick Harris in his first 24 hours on Twitter, but for something that's a legitimate charity effort rather than a goofy viral meme, it's respectable.
Facebook has traditionally been hands-off about partnerships on its application platform, but nonprofit and public interest-related projects have been the exception: the social network forged several media-outlet deals during the 2008 presidential election, partnered with nonprofits to create virtual gifts for its "Facebook for Good" campaign, and synced up with the Huffington Post for a "social news" experiment.
It was less than two years ago that Facebook founder Mark Zuckerberg said that corporate philanthropy wasn't an immediate goal for the social network because, at the time, it simply didn't have the profits.
Perhaps in a sign of how the plague of social media has numbed us all to the value of legitimate human connections, the New Oxford American Dictionary has picked the verb "unfriend," or "to remove someone as a 'friend' on a social networking site such as Facebook," as its 2009 Word of the Year.
At the very least, it's a testament to the ubiquity of Facebook, which now has well over 300 million members around the world.
Facebook itself takes the process of "friending" and "unfriending" very seriously. It once sent warning notes to players of a third-party game called PackRat because it encouraged players to amass huge friends lists (good heavens! they're polluting the social graph!), banned a Burger King ad campaign that let members "sacrifice" their friends to get a free cheeseburger ("Friendship is strong, but the Whopper is stronger"), and still puts a cap of 5,000 on personal profiles' friends lists.
Last year's Oxford word of the year was the decidedly less mainstream "hypermiling."
A correction was made at 9:25 a.m. PT on November 21. It was players of PackRat, not PackRat itself, that were threatened with account suspension.
If social gaming is Hollywood, the people aren't as pretty. Well, maybe the avatars are.
Yes, yes, we know that social games are taking over the bloody world: earlier this week, gamemaker Playfish announced its $300 million sale to Electronic Arts, and on Thursday, rival Playdom retorted with the announcement of $43 million in venture funding at a $260 million valuation, and the acquisitions of smaller gaming companies Green Patch (manufacturer of Facebook-based games like Lil Green Patch and Farm Life) and Trippert Labs. Green Patch's games will up Playdom's reach on Facebook by 30 percent, the company said.
Expect to see more of these sales, as smaller developers find they're having trouble treading water in an industry where the big guys--Zynga, Playfish, Playdom--have chomped up most of the market share, and where Facebook, the biggest destination for these games, has shown that it can change the rules at whim. And the big companies, too, want to scramble to get bigger.
Plus, as Playdom co-founder and chairman Rick Thompson explained to CNET News: When gaming companies grow large, they have to deal with a lot of stuff that can get in the way of producing new games and staying on top of consumer trends. That's one reason to keep investing in new talent through acqusitions.
"The hitmakers start spending all their time on operations, and on things that don't improve or enhance the games, and so they become essentially owners and operators," he said. And likewise, "people who can create things shouldn't necessarily be operating a gaming company."
He drew the evolution of a social gaming company parallel to an entertainment studio: "a lot more like Hollywood or the traditional gaming industry" than a Web start-up.
But here's the catch when it comes to acquisitions in this space: Gaming, especially social gaming, is a hit-driven business. If a parent company buys up a hot Facebook game, that game could already be running out of shelf life: which is, indeed, sort of like a Hollywood establishment signing a contract with an actor who's had five hit films in a row, as he could easily be over the hill before long. (Hello, Rob Lowe.)
"I think we're getting pretty good at really looking at their data now, and modeling how these games will evolve over time," Thompson said. "But I think there's essentially a life cycle of growth and then decay. What we really look at in acquisitions is not just daily active users, but bringing on additional team members that can really help create new games in the future."
After a trial release in July, Face.com on Wednesday launched Photo Tagger to the public. Photo Tagger is a free third-party application for Facebook that uses facial recognition technology to automatically tag photos of people.
Facebook users can use Photo Tagger to automatically tag their photos, it uses facial recognition software to tag all of the photos in an album. After selecting an album photo Tagger scans the photos, then batches them into groups by subject and suggests tags for them. When tags are confirmed, they are pushed live to Facebook, within the users privacy settings.
Photo Tagger also features its Face Alerts system that continuously scans newly uploaded photos automatically and alerts the user when it detects their photo, or their friends, image whether tagged or untagged.
"Face.com recognizes the ever-expanding scope of Facebook and takes it one step further--making photo sharing better, faster and more fun. Photo Tagger connects names to faces and you to your friends." said Gil Hersch, CEO, Face.com.





