Facebook users grown in huge number, ranging from university students down to high school students and because of their million users, other social networks tried to Wise-XY DE the company. It started when Zuckerberg worked with Sean Parker the former co-founder of Napster. Parker introduced Peter Theil to Zucherberg who then become the Facebook’s first investor. The investment amounted to $500,000.
The knowledge that Facebook opened its door for investors spread like a light gas in town, attracting other social networks to buy Facebook company. Friendster was the first to make an attempt to buy Facebook in mid 2004, offering Zuckerberg an amount of $10 million in exchange of company ownership. Like a precious antique possession in an auction hall, the bid for Facebook ownership rose up when Zuckerberg turned down the offer of Friendster.
Following the attempt of Friendster to acquire Facebook, in September 2005 Accel Partners provided an additional fund to the latter amounting to $12.7 million at $100 million valuation. A month after, Facebook add up a glimmering photo sharing feature which hightened its popularity. This another episode of magnanimous success in putting the network flashy attraction to users paved the way to receiving an additional funding from its previous investors Peter Thiel and Accel Partners. Meritech Capital and Greylock Partners joined the Facebook investors and put up a fund of $25 million. This deal was appraised to worth $525 million pre-money.
In March of 2006, Viacom tried to purchase ownership of Facebook at $750 million but its fate ended up same way as with the Friendster’s attempt.
When Facebook opened its membership to anyone with email address, the following summer of 2006, finally Yahoo tried to acquire ownership of Facebook to an amount of $1 billion. Although this offer was turned down, previously it was reported that Zuckerberg made a verbal agreement with Yahoo in selling out the ownership of Facebook. This verbal agreement became null and void when Yahoo eventually lowered down it offer from $i billion to $800 million due to the sudden drift of their stock price. At such face, Yahoo couldn’t resist acquiring the Facebook which drove it to made another offer as their stock price come to an equilibrium. This time, Yahoo offered Zuckerberg $1 billion which was instantly turned down due to a bad deal reputation Yahoo had previously committed. Zuckerberg instantaneously earned a very notorious label being “the kid who turned down a billion”. From then on Facebook remained a privately owned network by the Facebook company.