<![CDATA[Gawker: valleywag, chamath palihapitiya]]> http://tags.gawker.com/assets/base/img/thumbs140x140/gawker.com.png <![CDATA[Gawker: valleywag, chamath palihapitiya]]> http://gawker.com/tag/valleywag/chamathpalihapitiya http://gawker.com/tag/valleywag/chamathpalihapitiya <![CDATA[Who's Leaving Facebook Next?]]> The wheels seem to be coming off at Facebook after the ouster of CFO Gideon Yu. We hear another executive is leaving the social network to spend more time with his family.

After Yu left abruptly, CEO Mark Zuckerberg trotted out the tired time-with-family cliché to explain his departure. But in the case of Facebook VP Chamath Palihapitiya, the cliché seems to be literally true, and the departure temporary. Sort of. Palihapitiya, a former AOL executive who now heads Facebook's growth initiatives, has said he plans to leave the company altogether, but was persuaded to take a four-month paternity leave instead.

A less likely rumor we've heard: That COO Sheryl Sandberg has been issuing ultimatums, that either she goes or Zuckerberg. That doesn't square with Sandberg's style. She's an experienced Washington operative and former Google executive who always works behind the scenes to get what she wants. But she does have ties to Facebook investors, including venture-capital firm Accel Partners and Elevation Partners' Marc Bodnick, who happens to be her brother-in-law. Could she quietly be spreading the word that it's time for Zuckerberg to go? And if Zuckerberg gets wind of her efforts, could her time be up?

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<![CDATA[Is Former Exec Still Tangled in Facebook's Web?]]> It's a day of high intrigue at Facebook headquarters, with CFO Gideon Yu leaving abruptly. So why was former COO Owen Van Natta, who left last year, spotted walking out of a Facebook office?

There's an innocent explanation: His digital-music startup, Project Playlist, which recently scored a deal with EMI, has its offices in a downtown Palo Alto building shared with Facebook. But that doesn't explain why our tipster, who spotted Van Natta twice today, saw him walking from that building to another Facebook office. Could be a coincidence. Or it could be that Van Natta, who remains close to Facebook executives like Chamath Palihapitiya and Dan Rose, is up to something.

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<![CDATA[Who's in charge at Facebook?]]> A tipster reports spotting Mark Zuckerberg in San Francisco today, outside 21st Amendment in San Francisco. He was "having a conversation (all smiles) with two other guys," our tipster tells us. The restaurant and bar is near San Francisco's South-of-Market startup epicenter, so there's any number of reasons Zuckerberg might have been in town. But I can think of one reason why he'd be all smiles: He's not in Palo Alto, where Facebook COO Sheryl Sandberg is busily wrecking his company. When Zuckerberg hired Sheryl Sandberg as Facebook's COO, he said she would not be in "overall charge" of the company, but would stick to running business operations. As she's repeatedly meddled in technology and product, Facebookers have asked Zuckerberg what's going on — and he's kept repeating his "overall charge" promise, even as Sandberg pulls an Al Haig — "I'm in control here" — down in Palo Alto. Zuckerberg's misdirection is entirely intentional — and very revealing of his management style.

Zuckerberg tends to fall in love with his latest hire, and give that person more and more responsibility, until there's some obvious failure. Even from the outside, it's crystal clear that's what happened with Oven Van Natta, Sandberg's predecessor as COO; it happened, too, with Chamath Palihapitiya, whose portfolio waxed and waned with Zuckerberg's favor.

So Sandberg's rampage through Facebook's technical ranks is just par for the course. If past experience is any indication, Zuckerberg's hanging back, keeping his fingerprints off her actions, and waiting for her to trip up. Her botched handling of ace product marketer Ben Ling's departure may be what turns Zuckerberg against Sandberg — or not. What's clear: When his disfavor arrives, it will be sharp, cold, and unmovable. Sandberg won't know what hit her. And Zuckerberg will be all smiles — like he was today in San Francisco.

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<![CDATA[Facebook flack takes over computing platform]]> Can a PR guy run an operating system? Silicon Valley's gut reaction: No way. And yet that's what Facebook COO Sheryl Sandberg has done in appointing Elliot Schrage, her handpicked flack, to run Facebook's platform. The platform, when it launched a year ago, was hailed as the world's next Windows; by opening up its friends lists and other features to outside developers, Facebook would surely become the next Microsoft, ran the standard line of punditry, in an age when the pundits were in love with Facebook. That, more than anything, surely stirred Microsoft to invest $240 million in the company. But in one very short year — or a very long one, rather — Facebook's platform has gone from selling point to PR headache.

That Facebook would throw this all in Schrage's lap is telling — about both Facebook and Schrage. Schrage, having shrunk his role considerably by following Sandberg from Google to Facebook, is likely desperate for some scrap of increased authority. And Facebook's geeks, getting assailed in the press for their decisions, are eager for someone slicker than they are to take the abuse.

Still, it needs to be said: Facebook's platform is technically immature, and needs a technical manager. Chamath Palihapitiya, whom Schrage is replacing as its head, may be inept at public relations — look at last year's debacle with Facebook's privacy-invading Beacon feature. But that doesn't mean he's bad at running a computing platform.

Schrage may not be a geek, but he'll now need to play the part. This should be fun to watch. And he can take comfort in one precedent: This isn't the first time the owner of an important computing platform has, in desperation, put a gladhanding slickster in charge. Microsoft's Kevin Johnson, who now oversees Windows, previously ran its sales operations. He also negotiated Microsoft's Facebook investment. He would surely approve.

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<![CDATA[Facebook wants developers to build for boring but profitable enterprise market]]> While Facebook COO Sheryl Sandberg tries to convince the world 20 million SuperPoke users have value, her minions are busy trying to convince enterprise developers to build applications that actually do. "One area we've seen a lot of value for the social graph is in the enterprise because it's a completely different way to envision an HR system or CRM," Facebook marketing exec Chamath Palihapitiya told conference-goers Thursday.

"A handful of large companies have expressed interest in seeing how it would work because organically at least 50 percent of their employees are already on Facebook," he said. The staid enterprise execs in the room promptly began shrieking. "Ads in the enterprise are extremely unfeasible," said a self-interested David Thompson, CEO of ad-free enterprise softwaremaker Genius.com. "No one wants it, certainly not corporate IT," he said. "I say it's doomed."

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<![CDATA[At OutCast CEO Dinner, Robert Scoble greeted us warmly]]> FERRY BUILDING, SAN FRANCISCO — Let's be clear: Local PR firm OutCast's CEO Dinner event Thursday night wasn't really a dinner — most people ate standing up. Nor were there many CEOs. (I counted one: Jim Louderback of Revision3.) It's a far cry from years past where the decimated post-bubble survivors of San Francisco's tech press corps would gather in a room and listen to OutCast clients like Gordon Eubanks of Oblix, a salty former submarine officer, utter zingers about the wonders of Viagra. OutCast is a sizable firm now, and it's got big clients like Facebook and Yahoo. But Mark Zuckerberg? Jerry Yang? Nowhere to be seen. Instead, you had a hall full of hacks and flacks. I wonder how many of them shook videoblogger Robert Scoble's hand? Photo gallery after the jump:

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<![CDATA[P is for Parker, the Valley's bad boy]]> Sean ParkerSean Parker has had a hand in some of the Valley's biggest successes. His first company, Napster, took the world by storm, but didn't make Parker rich. His second, Plaxo, just sold to Comcast. And his third, Facebook — well, say no more. Except for the bit about him getting kicked out, according to Mark Zuckerberg's legal testimony, for a cocaine arrest. (Parker characterized the incident as "a misunderstanding.") That and more is covered in the 21 pages Sarah Lacy devotes to Parker in Once You're Lucky, Twice You're Good, new book about Web 2.0. The index page where Parker is listed:

web20indexm-p.jpg

Previously:


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<![CDATA[Facebook's foolish foes]]> I remember, distinctly, when former Business 2.0 editor Josh Quittner's love affair with Facebook began this spring. He couldn't stop talking about it, and I could hardly avoid hearing about it, since my office was next door to his. With all the zeal of a late convert, Quittner evangelized Facebook for most of this year — and now, feeling betrayed by Facebook's Beacon ads, he has attacked them with all the betrayed fury of a new apostate. Facebook is dead — to him, at any rate. Quittner's fickle rage perfectly captures the Silicon Valley hype cycle, and the press's complicity in it. Having built up Facebook, Quittner and his fellow reporters must, inevitably tear it down. But in this latest episode, it's Facebook's critics, not Facebook, who have jumped the shark.

The protests over Beacon, a program which reports users' activities on other websites to their friends on Facebook, have been compared to last year's fuss over news feed. In fact, there's no comparison: Actual complaints from users about Beacon have been far, far fewer. The introduction of a news feed was a radical change to Facebook's behavior. Beacon, which merely extends Facebook's reporting of activity on its site to others, does not change users' experience of the site in a dramatic way.

Facebook has been its own worst enemy — doing far more damage than any underemployed blogger could. The company made just about every conceivable mistake in the marketing of Beacon — from overhyping it to Madison Avenue, misleading advertisers about how optional it was for users, and failing to consider the consequences of reporting users' purchases to friends and family over the holiday shopping season.

Someone should take the fall for this. Facebook executive Chamath Palihapitiya, in charge of marketing, has likened the introduction of Beacon to an experiment. "We want people to try it, to see it in action," he told the New York Times. "Our point of view is, let's give people the ability to sample it."

A sensible laboratory trial. But let's run a different experiment. Why did Beacon draw such a critical reaction from the press, while the news feed, a year ago, a much larger user revolt, make less of a splash? We can control for several variables.

Mark Zuckerberg, then as now, was CEO. PR head Brandee Barker, excoriated by Quittner and blogger Robert Scoble for the company's media relations, joined Facebook shortly before the news feed fuss. (It turns out that Scoble, who accused Barker of being unresponsive, never even even bothered to ask for an interview.) Owen Van Natta, then COO, now the company's chief revenue officer, was equally involved in both incidents, from what we hear.

The new variable in the Beacon trial is Palihapitiya himself, who joined the company just a few months ago after a long career at AOL. He's clearly a talented executive, trained in the new school of marketing through scientific thinking and quantitative analysis. Try something, and if it fails, discard it and move on. Perhaps that's what Zuckerberg should do with Palihapitiya.

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<![CDATA[Mark Zuckerberg demotes his No. 2 exec]]> owen_van_natta.jpgFounders never share power willingly, gracefully, or for very long. That's a lesson that Facebook's Owen Van Natta should have learned at the knee of Jeff Bezos, when Van Natta was an executive at Amazon.com. Instead, though, he's been schooled in it by Facebook CEO Mark Zuckerberg, who just demoted Van Natta from COO to chief revenue officer and VP of operations, Kara Swisher reports on AllThingsD. Zuckerberg's former No. 2, once trusted to attend the Sun Valley media-mogul conference in his stead, now shares key duties with a host of other executives. Here's a rundown on Van Natta's new rivals.

Chamath Palihapitiya, the former AOL executive, now heads up marketing; having criticized Silicon Valley's white-male old boys' club, Palihapitiya must surely be pleased with Van Natta's comeuppance. Matt Cohler, the early LinkedIn employee cofounderwho jumped to Facebook some time ago, is now in charge of "business operations" and strategy. Gideon Yu, the recently hired CFO, is now free to fib about Facebook's finances, as he did as YouTube's CFO after that company was acquired by Google. And close Zuckerberg associates Dustin Moskovitz and Adam D'Angelo now have tighter reins on the company's products and technology.

But Zuckerberg could be setting himself up for a fall. By elevating Van Natta's rivals, he's going to find himself spending time on personality conflicts, infighting, and turf warfare instead of tending to the needs of his beloved users. Palihapitiya, Cohler, and Van Natta, for example, are, by their titles, charged with Facebook's "operations." The more Zuckerberg's executives spar over fields of authority, the less attention they'll pay to business. Zuckerberg has asserted his power — at the cost, potentially, of his abiity to get things done.

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<![CDATA[Facebook's new hire leaps from frying pan to fire]]> What to make of Chamath Palihapitiya's hire by Facebook? Immediately before joining the red-hot social network, he worked as a venture capitalist for the Mayfield Fund. And last February, he attracted controversy for his comments about the privileged society of Silicon Valley in an art film, Living Pictures/Men in Gold." Palihapitiya, who's Indian Sri Lankan, spoke of his intention to break through the old boys' club. But in going from a venture capital firm to Facebook, it would seem he's just going from the old boys' club to the new boys' club.

Here's how the San Francisco Chronicle summarized his comments — and how Mayfield spun them after the fact:

But Mayfield Fund venture capitalist Chamath Palihapitiya said that despite his success in Silicon Valley, he still sees a white male circle of insiders that he can't penetrate, with exclusive dinner parties and country clubs that he isn't part of.
Predictably, Mayfield, Palihapitiya's employer at the time, claimed that his comments were taken out of context and that Palihapitiya believed that Sand Hill Road was a "meritocracy."

Whatever. Palihapitiya's departure from the world of venture capital, not five months after the brouhaha erupted, by itself suggests that all is not meritocratic at Mayfield. But if he thinks he's leaving a world of privilege for a league of scrappy strivers, he's sorely mistaken. At Facebook, after all, he's going to be working for Mark Zuckerberg, a graduate of Phillips Exeter Academy and Harvard College who grew up in Westchester County.

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<![CDATA[Maybe Facebook really is the new AOL: Ex-AOL...]]> WSJ]]]> http://gawker.com/index.php?op=postcommentfeed&postId=276492&view=rss&microfeed=true <![CDATA[Silicon Valley's golden men]]> This weekend's must-see movie isn't anything out of Hollywood — it's "Living Pictures/Men in Gold" at SFMOMA, a 40-minute video homage to seven Silicon Valley rich dudes. Created by French artist Sylvie Blocher, the video includes interview-montages with Snocap's Rusty Rueff, former Apple exec and "recovering assoholic" Jean-Louis Gassée, Eventbrite's Kevin Hartz, McDougall Creative's Eric McDougall, Eight Inc.'s Wilhelm Oehl, and Mayfield Fund's Chamath Palihapitiya (pictured). Yep, that's only six — no idea who the seventh is, though Kathy Levinson, formerly of E-Trade, had her footage rendered unusable due to "technical problems." Mmmm-hmmm. Read the Chronicle story for several good sexmoney quotes from the stars, and let us know your opinion if you see the exhibit.]]> http://gawker.com/index.php?op=postcommentfeed&postId=239224&view=rss&microfeed=true