OMEN
03-05-2008, 10:48 AM
Is Facebook becoming the new Google?
Facebook Inc. said today it had named Google Inc.'s global sales head, Sheryl Sandberg, as the company's new chief operations officer, accelerating a decline in Google's stock to 52-week lows.
The departure of Sandberg, who during a six-year career was instrumental in developing Google's fast-growing online advertising business, marks one of the first senior executives at the Web search leader to leave the company since its sensational initial public offering in August 2004.
"It is a significant move," Oppenheimer analyst Sandeep Aggarwal said. "This could be the start of others leaving."
Shares of Google slid 4.2%, trading at a 52-week low for the first time since its IPO three and a half years ago.
Chief Financial Officer George Reyes had planned to retire last August — the three-year anniversary of Google's IPO — when pre-IPO stock options had fully vested for executives. Reyes remains at Google, however, as it seeks to hire a replacement.
Symbolically, Facebook's move to hire Sandberg represents the passing of the crown as Silicon Valley's hottest start-up from Google to Facebook, which over the past year has emerged as the high-tech world's new darling.
"While there is no comparison between Google and Facebook in revenue terms, Facebook, in terms of popularity and impact, has a very similar profile to the pre-IPO Google," Aggarwal said of Facebook's growing momentum.
"Clearly, Facebook has a similar type of promise that Google had," he said.
Sandberg will be responsible for helping Facebook expand its operations and its presence globally, the Palo Alto, Calif.-based company said in a statement.
She will manage sales, marketing, business development, human resources, public policy, privacy issues and communications, and will report directly to Facebook CEO Mark Zuckerberg, the company said.
Sandberg was vice president of global online sales and operations at Google. She was in charge of developing the main sales channels for Google, its AdWords and AdSense online advertising services.
Prior to Google, Sandberg was chief of staff to U.S. Treasury Secretary Larry Summers during the Clinton administration.
Reuters
Facebook Inc. said today it had named Google Inc.'s global sales head, Sheryl Sandberg, as the company's new chief operations officer, accelerating a decline in Google's stock to 52-week lows.
The departure of Sandberg, who during a six-year career was instrumental in developing Google's fast-growing online advertising business, marks one of the first senior executives at the Web search leader to leave the company since its sensational initial public offering in August 2004.
"It is a significant move," Oppenheimer analyst Sandeep Aggarwal said. "This could be the start of others leaving."
Shares of Google slid 4.2%, trading at a 52-week low for the first time since its IPO three and a half years ago.
Chief Financial Officer George Reyes had planned to retire last August — the three-year anniversary of Google's IPO — when pre-IPO stock options had fully vested for executives. Reyes remains at Google, however, as it seeks to hire a replacement.
Symbolically, Facebook's move to hire Sandberg represents the passing of the crown as Silicon Valley's hottest start-up from Google to Facebook, which over the past year has emerged as the high-tech world's new darling.
"While there is no comparison between Google and Facebook in revenue terms, Facebook, in terms of popularity and impact, has a very similar profile to the pre-IPO Google," Aggarwal said of Facebook's growing momentum.
"Clearly, Facebook has a similar type of promise that Google had," he said.
Sandberg will be responsible for helping Facebook expand its operations and its presence globally, the Palo Alto, Calif.-based company said in a statement.
She will manage sales, marketing, business development, human resources, public policy, privacy issues and communications, and will report directly to Facebook CEO Mark Zuckerberg, the company said.
Sandberg was vice president of global online sales and operations at Google. She was in charge of developing the main sales channels for Google, its AdWords and AdSense online advertising services.
Prior to Google, Sandberg was chief of staff to U.S. Treasury Secretary Larry Summers during the Clinton administration.
Reuters