so welcome back to hit module in the first segment we looked at the companies
first segment we looked at the companies
first segment we looked at the companies who were most successful dating from
who were most successful dating from
who were most successful dating from 1994 2001 of course with the Nasdaq
1994 2001 of course with the Nasdaq
1994 2001 of course with the Nasdaq imploding in march of 2000 around 2002
imploding in march of 2000 around 2002
imploding in march of 2000 around 2002 was a pretty sort of nuclear winter kind
was a pretty sort of nuclear winter kind
was a pretty sort of nuclear winter kind of era in the online landscape but
of era in the online landscape but
of era in the online landscape but rising from the ashes was none other
rising from the ashes was none other
rising from the ashes was none other than the company that we chose for
than the company that we chose for
than the company that we chose for internet company of the year in 2002
internet company of the year in 2002
internet company of the year in 2002 which was google google so google we
which was google google so google we
which was google google so google we won’t bore you with the history but i
won’t bore you with the history but i
won’t bore you with the history but i mean in 2002 that was the last year that
mean in 2002 that was the last year that
mean in 2002 that was the last year that the company’s revenues were below a
the company’s revenues were below a
the company’s revenues were below a billion it was the last time it had less
billion it was the last time it had less
billion it was the last time it had less than a thousand employees it was also
than a thousand employees it was also
than a thousand employees it was also when Google shifted from being just a
when Google shifted from being just a
when Google shifted from being just a basically cute search destination with
basically cute search destination with
basically cute search destination with the i’m feeling lucky kind of button
the i’m feeling lucky kind of button
the i’m feeling lucky kind of button there to a real business that’s when
there to a real business that’s when
there to a real business that’s when adsense and adwords started to be either
adsense and adwords started to be either
adsense and adwords started to be either the revenue they developed a revenue
the revenue they developed a revenue
the revenue they developed a revenue model and it was the year after when
model and it was the year after when
model and it was the year after when they actually went out and bought
they actually went out and bought
they actually went out and bought applied semantics and that’s what gave
applied semantics and that’s what gave
applied semantics and that’s what gave them the search technology for adsense
them the search technology for adsense
them the search technology for adsense and adwords and that’s when they
and adwords and that’s when they
and adwords and that’s when they basically started to buy springs to get
basically started to buy springs to get
basically started to buy springs to get all that massive real estate on
all that massive real estate on
all that massive real estate on different websites to start monetizing
different websites to start monetizing
different websites to start monetizing and then in august two thousand four
and then in august two thousand four
and then in august two thousand four when they filed and went public I think
when they filed and went public I think
when they filed and went public I think that’s when analysts and critics and
that’s when analysts and critics and
that’s when analysts and critics and fans realized oh my god what a huge
fans realized oh my god what a huge
fans realized oh my god what a huge business is underneath this cute little
business is underneath this cute little
business is underneath this cute little search engine and cute little site so
search engine and cute little site so
search engine and cute little site so 2002 rising from the ashes was Google in
2002 rising from the ashes was Google in
2002 rising from the ashes was Google in 2003 you picked a company that’s a
2003 you picked a company that’s a
2003 you picked a company that’s a little bit less sexy in terms of media
little bit less sexy in terms of media
little bit less sexy in terms of media pio a Cisco yeah so why purposely Cisco
pio a Cisco yeah so why purposely Cisco
pio a Cisco yeah so why purposely Cisco is a company that basically built the
is a company that basically built the
is a company that basically built the backbone of the web either directly
backbone of the web either directly
backbone of the web either directly through investment or through
through investment or through
through investment or through acquisition the reason why we chose
acquisition the reason why we chose
acquisition the reason why we chose Cisco in 2003 it’s because in that 10
Cisco in 2003 it’s because in that 10
Cisco in 2003 it’s because in that 10 plus years span from 94 to 2007 it
plus years span from 94 to 2007 it
plus years span from 94 to 2007 it deserved a spot and ironically in 2003
deserved a spot and ironically in 2003
deserved a spot and ironically in 2003 most of the online space was the nuclear
most of the online space was the nuclear
most of the online space was the nuclear you know sort of winter but consumers
you know sort of winter but consumers
you know sort of winter but consumers were spending more and more time online
were spending more and more time online
were spending more and more time online and that benefited a company like Cisco
and that benefited a company like Cisco
and that benefited a company like Cisco that’s the year of the stock double
that’s the year of the stock double
that’s the year of the stock double right so even in a horrible landscape of
right so even in a horrible landscape of
right so even in a horrible landscape of 2003 the stock rules from $13 to 24 so
2003 the stock rules from $13 to 24 so
2003 the stock rules from $13 to 24 so with all the consumers still marching
with all the consumers still marching
with all the consumers still marching towards online the one company that
towards online the one company that
towards online the one company that benefit most was Cisco so they went with
benefit most was Cisco so they went with
benefit most was Cisco so they went with top company of the year in 2003-2004
top company of the year in 2003-2004
top company of the year in 2003-2004 your pic was a company that actually
your pic was a company that actually
your pic was a company that actually made some headlines this year skype why
made some headlines this year skype why
made some headlines this year skype why were they your main choice in 2004 well
were they your main choice in 2004 well
were they your main choice in 2004 well frankly I think that’s the year where
frankly I think that’s the year where
frankly I think that’s the year where they just really
they just really
they just really exploded it was one of the great viral
exploded it was one of the great viral
exploded it was one of the great viral stories it was founded by the
stories it was founded by the
stories it was founded by the entrepreneurs behind cos ah Nicholas
entrepreneurs behind cos ah Nicholas
entrepreneurs behind cos ah Nicholas Enstrom and jonna’s fris and 2002 is
Enstrom and jonna’s fris and 2002 is
Enstrom and jonna’s fris and 2002 is when Draper invested in them in 2003 is
when Draper invested in them in 2003 is
when Draper invested in them in 2003 is when the domains were registered in 2004
when the domains were registered in 2004
when the domains were registered in 2004 the company just blew up went viral and
the company just blew up went viral and
the company just blew up went viral and in october two thousand five is when
in october two thousand five is when
in october two thousand five is when ebay paid 4.1 billion dollars for the
ebay paid 4.1 billion dollars for the
ebay paid 4.1 billion dollars for the company and the big footnote to that
company and the big footnote to that
company and the big footnote to that story obviously is that they did not
story obviously is that they did not
story obviously is that they did not even secure the underlying IP the IP
even secure the underlying IP the IP
even secure the underlying IP the IP remained you know in the hands of the
remained you know in the hands of the
remained you know in the hands of the two entrepreneurs was under a company
two entrepreneurs was under a company
two entrepreneurs was under a company called jolted and that’s what led to a
called jolted and that’s what led to a
called jolted and that’s what led to a whole other you know drama last year
whole other you know drama last year
whole other you know drama last year when when basically you know new private
when when basically you know new private
when when basically you know new private equity firms came in bought the
equity firms came in bought the
equity firms came in bought the underlying IP and culminated it all on
underlying IP and culminated it all on
underlying IP and culminated it all on the sale to Microsoft this year for
the sale to Microsoft this year for
the sale to Microsoft this year for eight billion dollars so I mean skype
eight billion dollars so I mean skype
eight billion dollars so I mean skype somewhere someone is writing the
somewhere someone is writing the
somewhere someone is writing the screenplay to that Hollywood corporate
screenplay to that Hollywood corporate
screenplay to that Hollywood corporate Silicon Valley European drama fair
Silicon Valley European drama fair
Silicon Valley European drama fair enough 2005 a company that everyone
enough 2005 a company that everyone
enough 2005 a company that everyone likes to make fun of and that is making
likes to make fun of and that is making
likes to make fun of and that is making one last embarrassing attempt to be
one last embarrassing attempt to be
one last embarrassing attempt to be relevant again but they were really
relevant again but they were really
relevant again but they were really relevant that your myspace yeah so
relevant that your myspace yeah so
relevant that your myspace yeah so myspace was founded in July of 2003 it
myspace was founded in July of 2003 it
myspace was founded in July of 2003 it was incubated within intermix formerly
was incubated within intermix formerly
was incubated within intermix formerly known as ye universe it overtook
known as ye universe it overtook
known as ye universe it overtook friendster again we’re going to link to
friendster again we’re going to link to
friendster again we’re going to link to a story by one of the friendster
a story by one of the friendster
a story by one of the friendster insiders about how that company
insiders about how that company
insiders about how that company initially was the sexy poster child for
initially was the sexy poster child for
initially was the sexy poster child for social networking and it was overtaken
social networking and it was overtaken
social networking and it was overtaken by myspace in in summary basically
by myspace in in summary basically
by myspace in in summary basically friendster the board was you know trying
friendster the board was you know trying
friendster the board was you know trying to take on google and take over the
to take on google and take over the
to take on google and take over the world when its servers wouldn’t load up
world when its servers wouldn’t load up
world when its servers wouldn’t load up the sites kind of thing so it’s a good
the sites kind of thing so it’s a good
the sites kind of thing so it’s a good example of paying attention to the small
example of paying attention to the small
example of paying attention to the small details so i actually think that in 2005
details so i actually think that in 2005
details so i actually think that in 2005 when myspace sorry when myspace was
when myspace sorry when myspace was
when myspace sorry when myspace was acquired by news corp 46 hunt site for
acquired by news corp 46 hunt site for
acquired by news corp 46 hunt site for 580 million dollars News Corp bought
580 million dollars News Corp bought
580 million dollars News Corp bought intermix that was one of the two deals
intermix that was one of the two deals
intermix that was one of the two deals that News Corp’s Ross Levinsohn did the
that News Corp’s Ross Levinsohn did the
that News Corp’s Ross Levinsohn did the other one was when he bought IGN which
other one was when he bought IGN which
other one was when he bought IGN which was my old employer at the time I
was my old employer at the time I
was my old employer at the time I thought the I Jen deal would be better
thought the I Jen deal would be better
thought the I Jen deal would be better because professional content matters but
because professional content matters but
because professional content matters but the myspace wanted was the sexy one and
the myspace wanted was the sexy one and
the myspace wanted was the sexy one and i believe that word not for rupert
i believe that word not for rupert
i believe that word not for rupert murdoch to basically just get so
murdoch to basically just get so
murdoch to basically just get so distracted with the Dow Jones purchase I
distracted with the Dow Jones purchase I
distracted with the Dow Jones purchase I think myspace could have been a lot more
think myspace could have been a lot more
think myspace could have been a lot more it’s easy to criticize it and you can
it’s easy to criticize it and you can
it’s easy to criticize it and you can make fun of me for this and you should
make fun of me for this and you should
make fun of me for this and you should actually in 2006 I picked that deal as
actually in 2006 I picked that deal as
actually in 2006 I picked that deal as the best internet deal of all time
the best internet deal of all time
the best internet deal of all time because Google went out
because Google went out
because Google went out and paid nine hundred million dollars
and paid nine hundred million dollars
and paid nine hundred million dollars for the rights to run search ads and you
for the rights to run search ads and you
for the rights to run search ads and you know search listings in display banners
know search listings in display banners
know search listings in display banners so at the time it was a great deal the
so at the time it was a great deal the
so at the time it was a great deal the fact that you know the founders walk got
fact that you know the founders walk got
fact that you know the founders walk got distracted Rupert Murdoch got distracted
distracted Rupert Murdoch got distracted
distracted Rupert Murdoch got distracted and all of the other things I mean
and all of the other things I mean
and all of the other things I mean that’s after the think their focus
that’s after the think their focus
that’s after the think their focus became a greven new revenue in general
became a greven new revenue in general
became a greven new revenue in general rather than actual product development
rather than actual product development
rather than actual product development and no money went into the technology
and no money went into the technology
and no money went into the technology from the time you signed up to my space
from the time you signed up to my space
from the time you signed up to my space and time you quit it they were always
and time you quit it they were always
and time you quit it they were always telling you the live chat was coming but
telling you the live chat was coming but
telling you the live chat was coming but it never did and I think that’s where
it never did and I think that’s where
it never did and I think that’s where Facebook really so specific media this
Facebook really so specific media this
Facebook really so specific media this year bought them for 35 million they put
year bought them for 35 million they put
year bought them for 35 million they put up I think a small sum of that money
up I think a small sum of that money
up I think a small sum of that money mostly came from their PE firm Francisco
mostly came from their PE firm Francisco
mostly came from their PE firm Francisco partners I think that’s a great
partners I think that’s a great
partners I think that’s a great marketing when they go out to do the
marketing when they go out to do the
marketing when they go out to do the roadshow how much did I GM buy them for
roadshow how much did I GM buy them for
roadshow how much did I GM buy them for fun 580 million but that’s unfair I mean
fun 580 million but that’s unfair I mean
fun 580 million but that’s unfair I mean this is like accountants running wild
this is like accountants running wild
this is like accountants running wild and basically saying how could we
and basically saying how could we
and basically saying how could we maximize the tax loss game I mean you
maximize the tax loss game I mean you
maximize the tax loss game I mean you have to be somewhat just use common
have to be somewhat just use common
have to be somewhat just use common sense google paid newscorp nine hundred
sense google paid newscorp nine hundred
sense google paid newscorp nine hundred million dollars News Corp bought
million dollars News Corp bought
million dollars News Corp bought intermix for 580 million yes they poured
intermix for 580 million yes they poured
intermix for 580 million yes they poured in a lot of money but the fact that then
in a lot of money but the fact that then
in a lot of money but the fact that then they sort of yeah and they wanted 100 or
they sort of yeah and they wanted 100 or
they sort of yeah and they wanted 100 or 200 million but the 35 million dollars
200 million but the 35 million dollars
200 million but the 35 million dollars at specific media paid for them is
at specific media paid for them is
at specific media paid for them is actually just a great marketing expense
actually just a great marketing expense
actually just a great marketing expense when specific goes out and does its
when specific goes out and does its
when specific goes out and does its roadshow to institutional investors
roadshow to institutional investors
roadshow to institutional investors instead of being yet another ad network
instead of being yet another ad network
instead of being yet another ad network they’re going to be the guys who had you
they’re going to be the guys who had you
they’re going to be the guys who had you know the cojones to go out and buy
know the cojones to go out and buy
know the cojones to go out and buy myspace and sort of with Justin Timbers
myspace and sort of with Justin Timbers
myspace and sort of with Justin Timbers Justin Timberlake’s helping reposition
Justin Timberlake’s helping reposition
Justin Timberlake’s helping reposition it so we’re going to talk more about
it so we’re going to talk more about
it so we’re going to talk more about Justin in during the lightning round so
Justin in during the lightning round so
Justin in during the lightning round so point being 2005 we went with myspace
point being 2005 we went with myspace
point being 2005 we went with myspace 2006 2006 it was actually the your mojo
2006 2006 it was actually the your mojo
2006 2006 it was actually the your mojo is found it wasn’t it yes it was what
is found it wasn’t it yes it was what
is found it wasn’t it yes it was what holder was found in two thousand and
holder was found in two thousand and
holder was found in two thousand and your pic was YouTube which makes me
your pic was YouTube which makes me
your pic was YouTube which makes me wonder is did you find watchmojo because
wonder is did you find watchmojo because
wonder is did you find watchmojo because YouTube was one of your pics um okay so
YouTube was one of your pics um okay so
YouTube was one of your pics um okay so in the fall winter of 2005 when I was
in the fall winter of 2005 when I was
in the fall winter of 2005 when I was thinking of what am I going to do after
thinking of what am I going to do after
thinking of what am I going to do after askmen got acquired and I was basically
askmen got acquired and I was basically
askmen got acquired and I was basically you know wearing out my my tenure there
you know wearing out my my tenure there
you know wearing out my my tenure there I did see youtube growing phenomenal
I did see youtube growing phenomenal
I did see youtube growing phenomenal YouTube the URL was registered in May of
YouTube the URL was registered in May of
YouTube the URL was registered in May of 2005 and I got acquired less than 18
2005 and I got acquired less than 18
2005 and I got acquired less than 18 months later in October of 2006 I won’t
months later in October of 2006 I won’t
months later in October of 2006 I won’t say YouTube in particular but the fact
say YouTube in particular but the fact
say YouTube in particular but the fact that there were all these new
that there were all these new
that there were all these new distribution platforms like YouTube like
distribution platforms like YouTube like
distribution platforms like YouTube like dailymotion metacafe and whatnot was a
dailymotion metacafe and whatnot was a
dailymotion metacafe and whatnot was a big opportunity to create content so
big opportunity to create content so
big opportunity to create content so YouTube was founded by three paypal guys
YouTube was founded by three paypal guys
YouTube was founded by three paypal guys joette Kareem Steve Chen and chad hurley
joette Kareem Steve Chen and chad hurley
joette Kareem Steve Chen and chad hurley it was funded by one of their colleagues
it was funded by one of their colleagues
it was funded by one of their colleagues at PayPal who was like the controller or
at PayPal who was like the controller or
at PayPal who was like the controller or CFO
CFO
CFO roll off both who went to Sequoia and
roll off both who went to Sequoia and
roll off both who went to Sequoia and basically that company YouTube only only
basically that company YouTube only only
basically that company YouTube only only got 11.5 million and it sold for 1.65
got 11.5 million and it sold for 1.65
got 11.5 million and it sold for 1.65 billion that I would say right now is
billion that I would say right now is
billion that I would say right now is one of the better deals of all time
one of the better deals of all time
one of the better deals of all time online because now Google has number one
online because now Google has number one
online because now Google has number one in video number one in search it’s very
in video number one in search it’s very
in video number one in search it’s very dominating which takes us to 2007 2007
dominating which takes us to 2007 2007
dominating which takes us to 2007 2007 still a huge media darling today you
still a huge media darling today you
still a huge media darling today you chose facebook why did you choose them
chose facebook why did you choose them
chose facebook why did you choose them so early in the game well again we had
so early in the game well again we had
so early in the game well again we had to choose a company each year right and
to choose a company each year right and
to choose a company each year right and it had to be a different company so we
it had to be a different company so we
it had to be a different company so we went with Facebook in 2007 because even
went with Facebook in 2007 because even
went with Facebook in 2007 because even though was founded in 2004 it’s in 2007
though was founded in 2004 it’s in 2007
though was founded in 2004 it’s in 2007 that the paper valuation really started
that the paper valuation really started
that the paper valuation really started to grow so it went from like oh is this
to grow so it went from like oh is this
to grow so it went from like oh is this worth you know it turned down an 800
worth you know it turned down an 800
worth you know it turned down an 800 million dollar deal from Viacom and turn
million dollar deal from Viacom and turn
million dollar deal from Viacom and turn down a billion dollar deal at 1.6
down a billion dollar deal at 1.6
down a billion dollar deal at 1.6 billion dollar deal ultimately Microsoft
billion dollar deal ultimately Microsoft
billion dollar deal ultimately Microsoft came in and invested in a one point six
came in and invested in a one point six
came in and invested in a one point six percent stake at a 15 billion dollar
percent stake at a 15 billion dollar
percent stake at a 15 billion dollar valuation and at the time that seem
valuation and at the time that seem
valuation and at the time that seem crazy but you know the value has gone up
crazy but you know the value has gone up
crazy but you know the value has gone up in the secondary markets the 70 billion
in the secondary markets the 70 billion
in the secondary markets the 70 billion now Facebook has a lot to do to prove
now Facebook has a lot to do to prove
now Facebook has a lot to do to prove that value but long story short 2007 is
that value but long story short 2007 is
that value but long story short 2007 is when Facebook literally said we’re not
when Facebook literally said we’re not
when Facebook literally said we’re not going to be some kind of small
going to be some kind of small
going to be some kind of small acquisition in a company that might muck
acquisition in a company that might muck
acquisition in a company that might muck us up we’re going to want to be the next
us up we’re going to want to be the next
us up we’re going to want to be the next platform so I think now is a good time
platform so I think now is a good time
platform so I think now is a good time to take a break because that’s when we
to take a break because that’s when we
to take a break because that’s when we ended the list back in 2007 2008 2009
ended the list back in 2007 2008 2009
ended the list back in 2007 2008 2009 and 2010 we’ll discuss that next year
and 2010 we’ll discuss that next year
and 2010 we’ll discuss that next year and set the stage for the 2011 company
and set the stage for the 2011 company
and set the stage for the 2011 company of the year we’ll be right back
”
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