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From confidential reports, visits to the company’s sprawling campus, and interviews with its press-shy founder and C. But as the crowds gathered in Building 15, Facebook shareholders had cause to believe things were looking up.

O., its share price has languished, with Wall Street asking when the social-media giant is going to grow up and make money. The stock offering in May 2012 had been an infamous debacle, with the share price collapsing over the summer, so that the earliest buyers of Facebook shares had lost almost half their investment in three months.

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On January 15, inside Building 15 at the sprawling Facebook campus in Menlo Park, California, about 100 reporters, employees, and hangers-on packed a makeshift auditorium awaiting the arrival of Mark Zuckerberg, founder and C. By any measure, Facebook investors had plenty of reasons to be a disappointed lot.

Sheryl Sandberg, Kurt Eichenwald pieces together the largely unnoticed shift in Facebook strategy: new content, new algorithms, and new alliances, combined to power a marketing model that could have the rest of the world scrambling to catch up. —messages of encouragement aimed at the company’s employees, but ones that would probably have been better targeted at its shareholders.

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“This is one of the coolest things that I think that we’ve done in a while,” he said. An incredulous reporter asked the obvious question: How would Facebook make money off of this thing?

Maybe, Zuckerberg calmly replied, Graph Search would be a business someday, but, for now, he and his engineers were focused on just providing something new for Facebook users.


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