This apparent friction that exists in Facebook keeps coming up in story after story concerning the company and its latest actions. Some, like Robert Scoble, seem to be firmly in Zuckerberg’s corner as he continues to push against conventional wisdom and pressure to do things other than his way. For others this type of behavior raises concerns about what is actually going on at Facebook and if any of the other approximately 799 employees will be little more than Zuckerberg “yes-people” in order to keep their positions. Dissenters being shown the door is certainly becoming a pattern so it may be more likely that folks will “fall in line” because this economy is not exactly overflowing with opportunities.

“At Facebook, you’re either with Mark or you’re not,” said one source at the 800-person company, located in Palo Alto, Calif., and founded five years ago. “And, if you’re not, you leave.”

With Yu’s exit the questions continue about the financial condition of Facebook. All is speculation at this point but some insiders have told that internally the financial news is rosy with revenues up 70% this year and projected cash flow positive status in 2010.

Facebook is now approaching 200 million users which certainly is amazing. What’s on everyone’s mind though including potential advertisers is when the path to true monetization will be revealed and eventually unleashed.

Everyone will have detractors when you get this big so Zuckerberg’s situation is not unusual. While it may not be the most popular thing to say, one has to suspect that his age and lack of experience combined with what appears to be a pretty healthy ego could be giving some the jitters. The parade of high profile ex-Facebookers is growing as reported by the WSJ.

In the past year, two of Facebook’s co-founders, Dustin Moskovitz, its one-time head engineer, and Adam d’Angelo, the company’s chief technology officer, have left the company. Matt Cohler, an early employee who was a senior executive, also left last year.

Mr. Yu himself was a high profile replacement of CFO Mike Sheridan in 2007.

So what’s it all mean for Facebook? As with anything that being reported about a private company it all needs to be taken with a grain of salt. It is hard to deny, however, the pattern that is developing and accelerating at the social media monster. Whether it’s redesign issues, terms of service concerns or a high profile executive merry go round, Facebook has the opportunity to either end up as one the greatest success stories of all time or endless material for Dilbert cartoons. Which way do you see it going?

Comments

 

Jessica E. Vascellaro was alerted to Yu’s move by "a person familiar with the matter."  His departure has since been confirmed by Facebook representatives, who added only that someone named Spencer Stuart will lead the search for a replacement.

The development sends some odd signals.  Yu came from YouTube, and before that, Yahoo, so he’s definitely an important name.  It was during Yu’s time at Facebook that funding poured in from Microsoft, Li Ka-shing, and the Samwer brothers, too, so Yu obviously has a knack for getting supporters to loosen their purse strings.

Still, Facebook doesn’t appear to be letting all these details slow it down.  Facebook’s spokespeople stated that the company "will be looking for someone with public company experience," and also referred to "the next stage of our growth."

An IPO might be in Facebook’s somewhat-near future regardless of the recession, then.

That’s interesting.  After all, YouTube isn’t exactly an unsuccessful business (though it is swamped with lawsuits).  But what’s even more surprising is that Yu turned down a job offer with Sequoia Capital – an offer he’d already accepted, according to the Wall Street Journal – in order to join Facebook.

(Sequoia, by the way, is a venture capital firm that has given its support to companies like Apple, Cisco Systems, and Google.  It’s a bit behind the scenes, but it’s been extremely successful).

In a conversation with the Journal, Yu tried to explain his decision.  “My heart is first and foremost with venture-stage companies and consumer Internet companies,” he said.  Not to insult Yu – I don’t know the man, and would say the same about anybody – but one has to wonder where his wallet is.

In any case, the move has increased speculation that Facebook will undergo an acquisition or IPO.  That seems reasonable, seeing as how Yu guided YouTube through its joining with Google, but Mark Zuckerberg, Facebook’s CEO, has stated, “We’re not looking to sell the company, and we’re really not looking to IPO any time soon.”