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Zuckerberg nearly sold to Yahoo
The split
Many of the executives saw a startup that needed to get big, exit, and make them millionaires. Zuckerberg's goal was to connect the world online and do what he felt would make the world a better place. Those goals pulled in opposite directions, with executives pushing to sell to Yahoo and him refusing.
The company turned over its entire executive team. Out of that fire came a much clearer North Star, and everyone knew what they were signing up for. Alex Schultz joined afterward, when the goal was stated as connect the world online, full stop.
Why a clear goal pays
A clear goal pays off most in a larger company. With a clear North Star, a clear metric, and a few guardrails, teams can run without escalating every decision to the CEO.
How did Facebook's Yahoo offer play out?
Press reports in 2006 put Yahoo's offer at about $1 billion, and Facebook did not sell. Facebook opened to anyone over 13 in September 2006. In October 2007, Microsoft bought a 1.6 percent stake for $240 million, which valued the company at about $15 billion.
How do teams act without constant orders?
In the 19th century, the Prussian army under Helmuth von Moltke the Elder developed a doctrine known as Auftragstaktik, or mission-type tactics. Commanders told subordinates the goal and the intent, then left the method to them. Moltke held that no plan survives contact with the enemy, so officers on the spot needed to know the aim rather than a script. Modern militaries call the same idea commander's intent.
Why do employee and founder goals split?
Startup employees are typically paid partly in stock options, which turn into money only when the company is sold or goes public. A founder with a long-term mission can see a sale as the end of the work, while someone holding options sees it as the payoff. Facebook's 2012 IPO later set up two share classes that gave Zuckerberg a majority of the voting power.
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