The Untold History of Facebook’s Most Controversial Growth Tool

‘People You May Know’ helped the social media giant grow exponentially. One man made it happen. An exclusive excerpt from ‘Facebook: The Inside Story’

Steven Levy
Marker

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Founder/CEO of Social Capital, Chamath Palihapitiya, speaks onstage during “The State of the Valley: Where’s the Juice?” at t
Chamath Palihapitiya. Photo: Mike Windle

Early in her career at Facebook, Sheryl Sandberg had a series of conversations with Chamath Palihapitiya, Facebook’s vice president of operations.

Palihapitiya was at a crossroads. He had joined Facebook barely a year before, leaving a job as a venture capitalist. Previously, Palihapitiya had been a VP at AOL, the youngest person to hold that position at the company.

During his time there, AOL wound up doing a small deal with Facebook that linked AOL Instant Messenger to Facebook’s website. But the biggest outcome of the deal was the connection Palihapitiya formed with Mark Zuckerberg.

The boisterous Palihapitiya and the more introspective Zuckerberg had similar views about business and tech. Every couple of months or so, the two of them would get together. Inevitably the idea arose that Palihapitiya might join Facebook.

“Growth had plateaued around 90 million people,” Zuckerberg recalls. Palihapitiya came offering a solution.

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