corruption. i have talked about why that cannot be a problem, but it is a much more ambiguous problem than before. it is unfair to suggest that they had some motivation to hurt the poor[captioning performed by national captioning institute] [captions copyright national cable satellite corp. 2012] >> the first of the presidential debates live on c-span, c-span radio end -- and cspan.org. mark zucker work on a feature of facebook. then offer an internet occupy nor andrew keen on the status social media. after that, and look at some of the 9/11 more gills held this week. -- memorials held this week.

mark zuckerberg says his social network of stock performance has been disappointing. he sat down to talk about the future of baseball -- of facebok book. and this is about 35 minutes. >> please join me in welcoming to the stage facebook founder mark zuckerberg and techcrunch founder michael arrington. [applause] they already yelling.

>> what is that? did i mess up already? there are a few more people in here. i think they want to hear what you have to say. welcome to techcrunch. >> thank you for having me perplexed and this venue probably looks familiar. -- thank you for having me. >>this venue look probably looked familiar. >> you get more people in here that we do. >> are you ready? a few questions to start. he went public on may 18th and the stock has lost half its value roughly. >> just get right into it. [laughter] >> if you could have done

anything differently with hindsight, would you have? >> the performance of the stockman disappointing. we care -- of the stock has been disappointing. we are going to do the things that we think are going to build value over the long term. over the next 3-5 years, the biggest question that is on everyone's mind here double determine our performance over that time is how well we do with mobile. we have been in this quiet period for the last six months or so. a lot has changed since then. six months ago, we had not launched our new set of apps. apple had not announced the ios integration. we did not run a single ad on

mibile. -- mobile. it is easy to underestimate how fundamentally good mobile is for us. that is one of the main things -- that i think is misunderstood right now. and a bunch of different levels. there are more users, obviously. per person who is using facebook of mobile, there is more engagement and they are spending more time. we think we a point to make a lot more money than we do on desktops. you can go through all three of these things. the number of users is fairly obvious. a lot more people have phones than computers jury the number smartphone are growing quickly. on engagement, mobile users

are more likely to be daily active users than desktop users. there is a lot we can do there. those statistics are from we even be -- from before we even launched the newest network. >> i want to unpack everything you just said but it is going to take me a while. you just said so much. i want to get rid of the ipo questions first. it is interesting how much to talk about mobile. when he went public, he said we did not build services to make money, we make money to build great services. my response is you really meant that. let's talk a little bit about

that. [laughter] >> he said that it mean that? yes, i did. the statement we build -- we make money to build better services. it goes to the heart of the philosophy we have in running the company. there is no doubt we are a mission driven company. we exist and the thing that gets excited is making the world more open and connected. but you cannot just focus on that. since the beginning of building facebook, one of the court thinks i learned as we have to build a great team. to build a great team, the best people want to work on a mission they believe that the but they also want to make a bunch of money. to do that, you have to build a great business. we want to build a platform. you need to build tools that will make it so developers can build the things they want to

make a bunch of money. we need to have a business model that works for them and incentivize them to want to work with us. advertisers produced a lot of ntent. the content is in the system because advertisers get a good roi working with facebook. building a mission and it does is go hand in hand. it is true that the primary thing that makes me excited about what we're doing is the mission but i also think that from the very beginning, we have had a healthy understanding that we need to do both. we are out doing both. >> with the stock price fluctuations, are you finding have to be creative in keeping morale up? how are you dealing with that in general? >> it does not help. but, look -- there are a few things that are important to keep in mind.

facebook has not been an uncontroversial company in the past. it is not like this is the first up and down we have ever had. i think people at facebook are rarely used to at this point the press and folks say good things about us and that things. we have a pretty good compass at understanding here is what many to build, we have -- we will stay put on that. when i think people are being too nice to us, and when i think were being too critical and underestimating us, i think it is important to keep in mind. people understand that. the second thing is just that what motivates people of this book is building stuff their product. that is universal. it is hard for people to wrap their heads around i'm bill clinton than 950 million people are going to use. but i'm building something i am

going to show to my friends and my family and i'm going to be proud to do that. one of the things we have found is the release apps, the ios integration coming out, all of these types of things, that is not only the stuff that drives morale and that the said the company but drives a lot of recruiting. people come to us as i -- to us and say i went to work this place because you guys are the most interesting stuff out there. we have not really done anything on equity or anything like that to incentivize people. sticking to the normal task we have there is good. but it is important for people to understand, and the people and people out of the company, the way we do composition is we translate the amount of cash to what to do you into shares. if the shares are undervalued the new will get more shares for the amount of money we're going to compensate you.

some people are going to look at this but i think it is a great time for people to join. it is a great time for people to stay and double the previous team that. >> can we talk product now? they like that answer. i want to talk about products. i have been rough on the company as others have over mobile that the past. as it was the achilles heel -- i said it was the achilles heel. >> we were very self critical, too. >> is mobile an opportunity for facebook or is it your weakness? >> if gets back to what i was saying before. mobile is -- more users, each user will spend more time and

par amount of time this event, we will make more money than we are on the spot -- on desktop. a lot more people have phones in the world. more engagement. since we did the new version of the ios app, we havea seen them grow and -- seen double the aound o stories. the are huge things we can do that can move the needle on that. motel asistic because a lot closer to tv than desktop. ,n the stock -- on desktopm we have had this ad team work largely in isolation to

read your building a product and it has been great. we built a multibillion-dollar business by doing that. a mobile, the the answer. each of the product teams at facebook are taking ownership of that jury be seen great hamas official products compete -- yet developed. they have to be integrated into the product. going toe know we're do well on that. there is a huge opportunity. the question is getting there. there is no doubt -- we have had a bunch of missteps on this. part of the first question you asked me -- what are some of the big mistakes made. but i'm introspective about the last two years, i think the biggest mistake we made the the company is betting too much on html5.

it just was not there. it is not that it is that. i am actually in long-term -- really excited about it. we have more people on a daily basis using mobile web facebook been using our ios or android apps combned. we went for this approach. we build this internal framework of a golf face sdb. the idea that we could take infrastructure and translate that into mobile development. we never got the policy we wanted. we made this decision to years ago. it took 608 months to biuld -- 6 to 8 months to build dace

web. probably will look back on saying that as one the biggest mistakes if not the biggest strategic mistake we have made. but we're coming out of that now. >> news said it was a -- you said it was about two years ago that you decided data with the way to go. >> two years ago as we decided 5.combat completely on htmkll that iswhen we started bui lding face web -- that's when we started building facve web. we worked at that for a few months the camp to the conclusion, this is better to go to the continent -- quality

levels. 31 will need to have something at the highest quality level. -- we needed to have something at the highest quality level. >> you said that was the biggest strategic mistake you made. >> a cassette, we have more usage on a mobile upside-down on our rehearsal iod and android paps put together. we cannot but completely on that. when i was on an android, you can do better by nearing -- by doing native work. ." i was skeptical at first that i wrote about it. was there a point before launch

-- before you launced? >> yes. we are very self critical. it was not where we wanted to do before. even we have now is not as good as a candy. with the last period of time -- we made the decision to get the rebate done as quickly as possible. we knew what his to add a bunch of figures -- we wanted to add a bunch of features. we scoped it and shipped the same features we have from before. in parallel, they have been building aps we did not launch for the last release because it wanted to be the same future

said. that will be awesome. >> will you rewarding android ?sers with a better app > guest: it was not just pushing down the web sites. a lot stuff is going to apply to enjoy it. we're working on that and hope to have that ready soon very >> -- that really son. it will be ready when it is ready. >> you have a 7 mobile group, a separate mining group. how has that changed and when? >> we used to be purely functionally organized during

the management team had won head of engineering and product. he made this change around the end of last year. now there is a news feed, and identity platform. before the running -- the people running each of these products were scattered across the organization -- someone in engineering, product. now person owns each one of those. what a lot of people dead -- did was step back and say i do not have the infrastructure in place now. the was a lot of rebuilding and retooling. the native and a structure. -- infrastructure.

because of the cycle where we started out, that is why the first half of the year's low on products but for the next six or nine months, i expect more interesting stuff will come. i am really excited about that. we have a mobile check in. it went from 90% of the mobile code being committeed to now 90 coming from the -- all the code ebing writeen is mobile. >> do you still code?

>> we have a role at facebook that if you check your code, you have to stay with it. i do not check in code to the main branch anymore. [applause] >> do mark zuckerberg's code break? >> yes. everything i do brakes but we fix it quickly. >> you closed the instagram acquisition. why and what are you going to do with it? >> instagram is great. they are this super accounting group of engineers. they are building this amazing product.

they are killing it. the history of how this thing came together is really interesting. the way i got to know that and -- kevin is they started off atform.g on top of our pl it is really first class. sharing a picture from instagram appears the same as if he shared a photo on facebook. one of the things i like to do, i'd like to know our developer is personally and what to get to know the people doing great stuff on top of our platform. i spent a lot of time with kevin. over the course of our discussions, we build a road map of all the things we can do together but then the tensions started. they were starting to get a lot of distribution from facebook and for them, there was this

question of how much do they want to bet on one company providing a huge amount of the distribution? on the flip side for us, there's this question of how much of a prayer as the kings. we have a slick of cool things we can do -- we have this list o all these cool things we can do. events in the i just bought up the india, maybe we should join in the one company. -- eventually i just bought uo maybe we should join the same company. we want to help our users out with whatever we can. we have no agenda and terms of mechanics go into our ever structure. i think it is a waste of time. we will not do that.

we will try to do the things we would have done and now we can prioritize the more highly theory they can do a lot of them directly. >> i clearly missed time drinking the water. >> know. -- no. i just stopped awkwardly to request you did this on purpose. -- awkwardly. >> you did that on purpose. of course i believe he predicts that i do not. maybe there's a secret group inside the facebook building hard look phones. i wish to come out publicly and say we're definitely building a facebook phone. >> it is always been the wrong strategy for us. it is a juicy thing. that is why acting people have

wanted to write that. but it is clearly the wrong strategy for us. we have nine and a 30 million users and it is growing quickly. -- 950 million users and it is growing quickly. let's say we get a to million people to move -- to purchase a thornberry the strategy we have that is different from every other major technology company building their own hardware and operating system -- apple, coble -- google, we going into the opposite direction. we want to build a system as deeply as possible integrated into every major device and things people want to use. then there three major platforms rest. mobile webb -- web and no one is more integrated and austan -- than us.

the last release we did was the first set. it did not indicate on design. it got to a good, fundamental framework. the ios integration the whole fleet will be coming out soon as a big piece of that. i'm really excited. it will make it to that ios developers get into it with a book a lot better. --ght out of theios apps right out of hte 10 apps -- that provides a good opportunity for us to go deep. android, we can go deep on our own. there's a lot of hooks you can use as a developer. that is a strategy. >> there the question he spent a lot of time thinking about mobile these days. this is top of mind to progress

at basically live, mobile device. you want to hear soothing funny? the founders letter on the s1, i wrote that on my phone. >> really? >> yes. i did everything on my phone, as a lot of people do. i think it is clear that -- with the stats and my own personal intuition, you check in more with the people around you, you can share more. you have the device with the west -- when you want to two things. a lot of these developments is not going towards building desktop stuff anymore but mobile stock. we are helping a lot of folks build great mobile experiences. that is the future.

>> you did say you're building a phone? or no. >> everything except that. >> what about search? >> search is interesting. we do 1 billion queries a day already and we are basically not even trying. today's search is people trying to find people but there are also a meaningful portion of people try to find when the pages. and much of it does lead to commercial behavior. i did there's a big opportunity there. we need to go do that. certification is interesting. the legacy is you get the search engines like to will and bing. q taiba in keywords -- you

type in keywords. search engines are evolving towards giving you a set of answers. i have a specific question, answer this question for me. but you think about it from that perspective, this book is uniquely positioned to to enter a lot of question cupola. what susu restaurants -- sushi restaurants have my friends got to in new york i did of the past six months? what friends were at a company i want to work at? these are curious -- queries you can potentially do. at some point, we will do it. >> d. you have a team working on it now? >> we have a team working on certification street -- working

on search. trying,aid you're not as being facetious. -- when i said we were not trying, i was being facetious. i think that is one obvious things that would be interesting for us to do in the future. >> what are other obvious things you might want to do in the future? facebook phone? >> see, the phone doesn't make any sense. there's a lot of stuff on platform i'm really excited about. let's let's talk about that. there is zynga. not growing so much anymore. what else is going on there? >> canvas