It, i should just tell it like it happened, in an unvarnished way, warts and all. Youll hear how the two High School Buddies who started microsoft and a computer revolution had some pretty trying times along the way. Do you think he came to think that you werent working as hard as he was and it became a source of resentment with him . Well, i think he was always pushing people to work as hard as they possibly could. You included. Um, maybe me more than everybody else. You talk about his yellingscreaming. Uh, there was a lot of yelling. You guys never understood you never understood the first thing about this. I mean, theres no way. Well figure it out. Welcome to 60 minutes on cnbc. Im steve kroft. In this edition, we meet two Silicon Valley billionaires a generation apart who revolutionized the world of computing and the internet. Facebook Ceo Mark Zuckerberg and paul allen, microsofts cofounder. We begin with Mark Zuckerberg and facebook. If you have a facebook account, youve probably reconnected with an old pal, shared photos with your family, and gotten advice from your friends on what to buy and what to read. But facebook has bigger plans. It wants to turn the entire web into one big social network. Lesley stahl first talked with Mark Zuckerberg in 2008, and three years later, we sat down with mark again. He gave us a preview of his sites new profile page, a change that would affect the 500 Million People who were then using facebook, an idea that zuckerberg had cooked up in his dorm room at harvard. When you first thought about this19 years oldis this what you had in mind . Did you see this far into the future, or is it way beyond what you dreamed . Well, its funny. I mean, when i was getting started, you know, with my roommates in college, you never think that you could build this company or anything like that, right . Because, i meanit justand we were college students, right . Yeah. I mean, we were just building stuff because we thought it was cool. I do remember having these specific conversations with my friends where we thought, you know, someone is gonna build this. Someone is gonna build something that makes it so that people can stay connected with their friends and their family, but no way would we be the ones who were contributing to kind of leading the whole internet in this direction. But thats what hes doing leading the whole internet in his direction. In a nondescript tshirt at a nondescript desk, Mark Zuckerberg runs a vast global empire with the Worlds Largest population after china and india. I first met him in 2008 at facebooks old graffitied building in downtown palo alto. The company has since decamped to giant hangars nearby to accommodate their explosive growth. The graffiti is largely gone, except for one word you just cant miss. I see hack everywhere. Mmhmm. Hack. It has a negative connotation, doesnt it . When we say hacker, theres this whole definition that engineers have for themselves, where its very much a compliment when you call someone a hacker, where to hack something means to build something very quickly, right . In one night, you can sit down and you could churn out a lot of code, and at the end, you have a product. Which is what he expects from his 500 engineers. As we walked through, we got a sense of highlevel competition, whether its writing code into the night or taking breaks to play speed chess. Its a constant game of oneupsmanship. You have hackathons. Yeah, and hackathons are these things where just all of the facebook engineers get together and stay up all night building things. And we just have this culture and you too. I do too, and, i mean, usually at these hackathons, i code too just alongside everyone. As he spoke, i remembered his awkwardness from 2008 and how he rarely blinks. But hes far more relaxed now, easier to smile, and noticeably more confident as he tells you about all the new products they keep launching. Youre showing us something that no one else has seen yet. Soon. The company will launch a new layout for the heart of the site, every users profile page. For example, this is marks old page filled with scrapbooklike entries in no order of importance, like andy samberg plays me on saturday night live. You have to dig around to get any real sense of who mark is as a person. This is marks new page, which is, in effect, the Mark Zuckerberg story, or how he wants his friends to see him. His bio information is right up top, with the kind of details hed tell you if you met him, say, at a bar. I work at facebook, and i spend all of my time there, right . I mean, here are my friends. Um, i grew up in new york, and now i live in california, right . Those are really kind of basic, important things. Under the bio his latest photos, posted by him or his friends. Its like a running ticker tape of his life. Every day, a staggering 100 million photos are uploaded onto the site. Lots of photos on the right away. People love photos. Yeah. Photos originally werent that big of a part of the idea for facebook, but we just found that people really liked them, so we built out this functionality. A dozen engineers and designers worked on the new page in this war room. Cool. Empty plates and toothpaste tubes by their keyboards. They raced against a clock right there telling them how much time was left to complete each highpriority task. We want it to be awesome. They came up with a new section on the left. You can now list the important people in your lifemom, dad, sister, sister, sister, girlfriend. Another new feature pulls up a history of your relationship with any of your facebook friends. You can see all of the things that you have in common with that person. And its just like, it gives you this amazing connection with that person in a way that the current version of the profile that we have today just doesnt do. For the oversharers among us, youll still get the news. Mark just ate an extremely spicy pepper and went to the harry potter Amusement Park with his dad. Theres lots more graphics under whats important to you . Mark likes lady gaga and epic movies. And finally, theres a sports section. He plays tennis and likes the yankees. But whenever facebook introduces something new, there are always questions about how it protects our personal data. Sure. Theres a sense that you, after all this time, arent always above board and that theres some hidden motive to kind of invade our privacy, take the information, and use it to make money. We never sell your information. Advertisers who are using the site never get access to your information. But the new layout does encourage us to reveal more about ourselves on facebook. The company also introduced a new button where users can tell facebook what they like on over 100,000 sites, whether its a new pair of jeans or a 60 minutes story. So the company does compile and control an evergrowing inventory of your likes and interests. And if facebook itself doesnt sell the information to advertisers, applications, or apps, that run on facebook by outside companies have been known to. Its against all of our policies for an application to ever share information with their advertisers. But they do. They do. And then we shut them down if they do. [ticking] coming up Mark Zuckerberg on facebook and privacy. Its something that we take really seriously. And, you know, every day, we come to work and just try to do a good job on this. And yet, youve got the ftc looking into it. You have members of Congress Looking into it. There have beenprivacy groups have lodged formal complaints. Youve hired a lobbyist in washington to deal with this, so you know its a problem. Thats ahead when 60 minutes on cnbc returns. [ticking] [ sponge ] welcome back to you make a choice. Meet our contestant. Will she choose to help maintain her hands. Or to really clean her dishes . Oooh, we have a game changer . [ female announcer ] dawn hand renewal with olay beauty has a specially designed formula that helps lock in your hands natural moisture while getting dishes squeaky clean. [ sponge ] sparkling dishes and fabulous hands she looks happy about those prizes [ female announcer ] dawn does more. [ sponge ] so its not a chore. The recent increase in cafeteria prices is not cool. When you vote for flo, well have discounts. Icecream discounts. Multicookie discounts. Pizza loyalty discounts [ kids chanting flo ] i also have some great ideas on car insurance. [ silence ] finding you discounts since back in the day. Call or click today. I like her. [ticking] when it comes to the issue of privacy on the internet, facebook is sometimes distrusted even by its most ardent users. Facebook Ceo Mark Zuckerberg told us that they dont sell their users information to advertisers, but do people on facebook really have control over their personal information . Am i a fuddyduddy. Yes. By. [both laugh] am i a fuddyduddy by asking all these privacy questions . No. Kara swisher is the editor of all things digital, a website about high tech in Silicon Valley. You know, i wonder if facebook can exist if it doesnt invade privacy. Thats right. Thats exactly right. So it needs to invade privacy. The issue is transparency, isnt it . Kind of, yes. How up front they are with the users. That is, i think, marks one weakness, and i think that was why he got so nervous in the interview we did. Okay, you want to take off the hoodie . Shes referring to this conference where she grilled mark on privacy in an interview she calls a sweatopalooza. Whoa. He had, like, flop sweat, and it was really quite disturbing, actually, to watch. She was pushing him to admit that facebook is misleading about its privacy policies an issue that comes up time and time again. Now, do we get it right all the time . No but its something that we take really seriously, and, you know, every day we come to work and just try to do a good job on this. And yet, youve got the ftc looking into it. You have members of Congress Looking into it. There have beenprivacy groups have lodged formal complaints. Youve hired a lobbyist in washington to deal with this, so you know its a problem. Well, i think that this its a really important thing for everyone to just be thinking about. Its huge. I mean, privacy and making sure that people have control over their information is, i think, one of the most fundamental things on the internet. Its become even more important as facebook introduces one new product after the next. These are all just, like, engineering teams. These guys work on the platform. Chris cox is head of product development. He sits across the desk from mark and thinks about what next . For facebook. This is how close we sit. And increasingly, hes thinking outside your desktop. How many people actually access facebook through their mobile devices . I think the latest number is over 200 million. So in other words, thats obviously the future. I think its a huge part of the future. Is facebook developing a phone device, like apple did iphone . No. Were working on Building Software that can be used on all phones. Their latest product is messages, which combines email, cell phone texting, and instant messages into one. They call it the ultimate switchboard. So do you think email will become obsolete . No. Im not sure. But what weve found is that more people are using messages are moving away from email. And so if we build a really compelling experience, i think people are going to switch over. But im not going to call the end of anything. Was this directed at gmail . No. Googles email . No. Because everybodys talking about a gmail killer. Its certainly what everyones writing about. Google. Yes. Facebook and google. Yes. Are they on a collision course . They are indeed. The fights over what . Its over how search. How people find, discovery, search. Say you want to buy a car. You can type prius on google and get publicly available information. Or you can type prius on facebook and get personal advice about it from your friends. Are you trying to turn everything we do on the web into a social function . I think what weve found is that when you can use products with your friends and your family and the people you care about, they tend to be more engaging. I think that were really gonna see this huge shift where a lot of industry isand products are just gonna get remade to be social. So youre out here in Silicon Valley. Can you feel a tectonic plates. Yes. Shifting over . Well you can see the talent shift over. Right. You know, theres been a big war about talent and payments, millions of dollars to keep people, engineers at google. Marks number two, sheryl sandberg, defected from google. He recently wooed over the inventor of google maps, and he even poached googles cafeteria chef. Theres kind of a talent brain drain from them to you, Something Like 200 people who work for you, 10 . I do think its clear. Are former googlers, right . There are areas where the companies compete. But then there are all these things where we just dont compete at all. Is the goal for you to conquer the whole internet . To own the internet . Well, think about it like this peopleif they can use a product of any category photos, groups, music, tv, anythingeither by themselves or with their friends, i think most of the time, people want to do those things with their friends. So is the answer yes . [laughs] come on. The answer is that we want to help other people build a lot of these products. He doesnt like to talk about competing with google, just as he didnt in 2008 when i compared him to its founders larry and sergey. You seem to be replacing larry and sergey as the people out here who everyones talking about. Youre just staring at me. Is that a question . That line is now in the social network, the movie about facebook. Is that a question . The question is, who is the real Mark Zuckerberg, and how did facebook really get its start . Why didnt you raise any of these concerns before . Well look back at the controversial creation of facebook and its cofounder, Mark Zuckerberg, when we return. [ticking] when we approached him, we had been working on the idea for almost a year, at that point. We had a sophisticated codebase. It wasnt an idea scribbled on a napkin. It was a very sort of mature idea, and we brought him on to bring it to completion. We agreed to work on this project. 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[ticking] having become a part of so many lives, facebooks creation is now the fodder of myths, the subject of lawsuits, a number of books, and the social network, an awardwinning 2010 movie, all focusing on its cofounder and ceo, Mark Zuckerberg. Half a billion people give you their personal information. Do you feel that, because of that, they have a right to know a lot about you personally, about your values, about what you think . Yeah, i think that because of that, we have to do a very good job of communicating, as a company, really. No, you. Im talking about you, Mark Zuckerberg. Is it important to know whos running facebook, in light of that . Yeah, it is. It is. Interest in what makes mark tick has heightened since the release of the movie the social network that depicts him as a callous genius who betrays friends and principles to protect his creation, facebook. If you guys were the inventors of facebook, youd have invented facebook. The real mark vowed he would never see the film. On opening day, he changed his mind. We took the whole company to go see the movie. Took the whole company. I mean, i actually thought it was pretty fun. But i guess my question is, was it hard to watch for you . In watching it, its pretty interesting to see what parts they got right and what parts they got wrong. I think that they got every single tshirt that they had the Mark Zuckerberg character wearing right. I think i actually own those tshirts. Come on. And they got sandals right and al