All Things Digital

Here’s one certainty in the hubbub that has resulted in the wake of the departure of high-profile exec Ben Ling from Facebook last week: COO Sheryl Sandberg is definitely not responsible for the melting of the polar ice caps.

That’s the joking question–”Was global warming Sandberg’s fault too?”–asked at a staff meeting at the social-networking start-up last Friday afternoon after the news of Ling’s departure on the heels of previous employee exits suddenly morphed into a series of increasingly vituperative posts on the Valleywag tech gossip site centering on what blogger Owen Thomas called Sandberg’s “reign of terror” at Facebook.

Using Photoshopped images–one of Sandberg wielding a rifle and another with the bright-red word, “LIAR,” plastered under her mug–the vaguely sexist and decidedly over-the-top picture painted was of Sandberg (at right) as some unholy cross of Lady Macbeth, the bad side of Hillary Clinton and a really grumpy fascist dictator of a small third-world country.

“She demands total loyalty, and brooks no dissent–even the healthy, boisterous debate that’s common to start-ups,” wrote Thomas dramatically, as if Sandberg might really use that fake rifle on errant minions. “You’re either with Sheryl, or you’re against Sheryl. And if you’re against Sheryl, you’re not long for Facebook.”

Owen, you have now officially scared the bejesus out of BoomTown with that added dash of Rosa Klebb!

(And, of course, this image conveniently leaves out the very pertinent fact that Founder and CEO Mark Zuckerberg is still firmly and much more militantly in charge at Facebook than ever before, but we will get to that later.)

In any case, Valleywag used all of this to postulate that Sandberg’s insane reaction to Ling’s leaving–complete with a sneaky-sounding stock bribe to buy his silence–was evidence of her mad grab for power over all of Facebook.

The talented and strong-willed Ling was portrayed in an odd way too, as some sort of whiny victim of circumstances he was unable to control.

Except–while BoomTown likes a good “Tom and Jerry” cartoon as much as the next person–it’s a deeply inaccurate portrayal of Sandberg, who arrived at Facebook in March; of what happened with regard to Ling; and most of all, of the often-painful growing-up process that has actually been occurring inside of Facebook.

The Ling incident is, in fact, a perfect example of this.

According to multiple sources from all sides, Ling (pictured here) was offered the choice of resigning or being terminated last Monday, and he and Facebook senior management wrangled over how he would leave the company and announce his return to Google (GOOG)–in a big job at its YouTube division, in fact. But the true story of his departure is highly typical of how small, promising Web companies stumble forward.

From mismanaging expectations related to Ling’s job after his arrival from Google last fall (after Facebook widely touted the new recruit), to constant shifts in how the company was organized, to a series of miscommunications and misunderstandings on both sides, the curious case of Benjamin Ling and Sheryl Sandberg is–more than anything–completely human.

Which is to say, it is a bit of a mess.

Here’s what I found out, after spending the weekend talking to as many people with knowledge of the situation as possible, in a very long report:

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It looks like Facebook will definitely be moving from its funky multi- building setup in downtown Palo Alto, Calif., to a centralized campus in Silicon Valley by early next year, said several sources.

The high-profile social networking company–which has been undergoing a major managerial shift of late, as it matures from its start-up status to that of a more established Web player–has been growing quickly–to almost 600 employees today from a couple hundred last year.

It is not clear when the move will take place, but sources said it is likely to start by the beginning of next year, as there are multiple permits, design issues and other logistical issues to resolve.

But, one thing is clear: Facebook will relocate its Palo Alto-based HQ–scattered in about five buildings throughout the suburban town–to a single location.

New HQ possibilities include, first and foremost, the old Hewlett-Packard buildings on Page Mill Road, nearby to the west of Palo Alto.

Facebook Founder and CEO Mark Zuckerberg prefers to remain near Palo Alto, sources said.

But Facebook has also been looking at locations in Mountain View and Sunnyvale, further south, as well as also considering a San Francisco location in the city’s recently redeveloped Mission Bay area.

Until now, Facebook has expanded by filling up rented buildings throughout Palo Alto, the picturesque town right next to Stanford University.

The appeal of being located in Palo Alto–full of shops, restaurants movies and also within walking distance of the main train station into San Francisco–has been a draw for its employees, who have, until recently, gotten some rental subsidies for being located near its offices.

But–as it has grown–Facebook’s presence in town has also become a problem for it and also the town’s citizens, as its swarms of employees have taken up too much space and parking in the increasingly crowded streets.

Growing further in Palo Alto is almost impossible, given the lack of office space and the higher expense, compared to the more typical office-park setups off Highway 101 in Silicon Valley that most Internet companies settle into.

Given Facebook’s plans to grow to 1,000 employees by the end of this year, it’s not a surprise that managers would be thinking of the next home for the company, making a move that is typical for most start-ups.

Sheryl Sandberg, the COO brought in from Google (GOOG) recently, saw such a thing happen to the search giant, which now has a large campus called the Googleplex in Mountain View, Calif.

Over the past six months, there has been a lot of upgrading of Facebook’s looser culture to bring it up to a more professional operation it needs to be if it wants to IPO at some point.

That has meant a lot of internal rejiggering, as well as what BoomTown can only describe as a maturing of its frat-like culture.

There have also been departures of several of its early employees, which also always happens as start-ups mature. Those who have left include: former top exec Owen Van Natta and CTO Adam D’Angelo.

And, just last week, Matt Cohler, its VP of Product Management and longtime adviser to Zuckerberg, announced he will leave Facebook in the fall to become a venture capital partner at Benchmark Capital.

In a move BoomTown is still trying to noodle over, longtime Facebook exec Matt Cohler (pictured here) will be leaving the social networking site to become a general partner at Benchmark Capital.

Cohler, who is currently Facebook’s VP of Product Management, was one of its earliest hires and, as I wrote once, seemed like “the Yoda figure at Facebook to me.”

He will not leave the prominent social-networking company until the fall, even though Cohler is already featured on the venture capital firm’s Web site.

And, after he goes, Cohler will remain as a “special adviser”–is that like a special guest star on a television show a la Heather Locklear?–to Facebook Founder and CEO Mark Zuckerberg and senior management.

It is a great get for Benchmark to grab Cohler, of course, who will be its youngest partner ever.

And while the venture firm was the hot shop in the Web 1.0 era, it has not been as prominent a partner in the Web 2.0 space, although Benchmark does have investments in sites like Yelp and Zillow.

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Yahoo’s board has been meeting today and, doubtlessly, its directors had a lot to talk about (more on that later!).

Of course, there’s the obvious topic of having to figure out how best to deal with the noisy stylings of billionaire investor Carl Icahn, who is waging a proxy war on Yahoo (YHOO) and calling for new management at the top.

But perhaps what the board should be focused on is the old management at Yahoo, especially in the levels just below the top, who have been operating the company under a lot of stress for far too long.

These would be those not involved in the deal–which has been essentially restricted to the board and also to CEO Jerry Yang, President Sue Decker and CFO Blake Jorgensen.

Yahoo’s operating execs have only been brought in when they are asked to assess the impact of possible options.

So with the clear-cut deal to be acquired by Microsoft (MSFT) seemingly off the table for now and a range of squishier partial ones being considered with either Microsoft or Google (GOOG), along with the continuing distraction of Icahn’s three-ring circus, it has not been easy for its execs to keep focus.

Thus, many continue to consider their options.

The latest speculation, for example, surrounds the fate of Network division EVP Jeff Weiner (pictured here), who has been on paternity leave for four weeks and will return to work next Monday, sources said.

Sources also tell me there will be a major internal announcement tomorrow and many quickly speculated to me that it would concern Weiner’s fate.

Not quite yet. But most at Yahoo I have spoken to do not expect him to stay long, even leaving within the next few weeks, pointing to the continued uncertainty at the company and also, I would imagine, sheer weariness.

Weiner came to Yahoo with former CEO and Chairman Terry Semel in the 2001, the last period Yahoo was in major distress.

And BoomTown has learned that this internal rumor is borne out by several sources within the venture capital community, who have been speaking to Weiner very recently about coming there as an executive in residence.

The obvious candidates for a new home for Weiner are the top firms, such as Accel Partners and Greylock Partners and perhaps even Benchmark Capital or Sequoia Capital, all of which have ties to Yahoo and have several former Yahoos on staff.

A Weiner departure would leave a big hole at Yahoo, and it is not clear which of his top four SVP reports would take his place–Front Door and Network Services’ Tapan Bhat, Brad Garlinghouse, who heads Yahoo’s communications and communities arenas, Media Group head Scott Moore and Yahoo Search’s Vish Makhijani–if at all.

Or even if Yang and Decker will keep the same setup in place.

That might mean another reorg, which has long been a specialty of Yahoo, to reorder its divisions even more leanly or to put more revenue accountability within the units.

Right now, that responsibility lies primarily with Hilary Schneider (pictured here), EVP Global Partner Solutions, who runs all ad sales.

Of all the top execs–even though she has reportedly been offered many jobs outside Yahoo–Schneider is expected to stay, having been brought into Yahoo more recently by Decker.

Translation: She is not exhausted by all the drama at Yahoo quite yet.

So I moderated a panel yesterday at AlwaysOn’s Venture Summit West, held at the Ritz Carlton at Half Moon Bay, Calif., with the title “Is There Still an Upside to the Internet?”

Of course, I redubbed it: “Has the Internet Jumped the Shark?” For the love of All Things Fonzie, you bet it has.

The discussion centered around what I think most agree is an inflated market for start-ups, worrisome especially given a looming recession.

Here is my video and one from the panel, in this case a snippet of Benchmark Capital’s Bill Gurley talking about Second Life, in which he is an investor:

Interestingly, none of the panelists–Gurley, Glam CEO Samir Arora, Lise Buyer of Class V Group and Aggregate Knowledge CEO Paul Martino–seemed bothered by that for a variety of reasons (lots of bigger companies interested in acquiring little ones, for example).

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I always pay attention when anyone calls a media executive smart and, when it is a newly minted one, I pay particular attention. In a post today, BuzzMachine’s Jeff Jarvis points to a story in The Wall Street Journal also today about CBS’s renewed efforts to plunge into the digital space under the leadership of Quincy Smith, its new Web guru whom I have known since he was doing investor relations for Netscape back in the day.

While he was impossibly young then, looking like a 12-year-old except for the sideburns, Smith is still the same jumping bean of a person he always has been, all frenetic energy and rat-a-tat-tat patter.

The Journal piece discusses Smith’s strategy of placing bets all over the Web by putting CBS content just about everywhere, across a wide range of sites. “CSI” on MSN! “CSI” on Bebo! “CSI” on AOL! “CSI” in your glove compartment! (It could happen.)

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Yet another departed Yahoo executive has landed at a well-known venture capital firm–this time with its former music head David Goldberg’s new stint as an entrepreneur-in-residence at Benchmark Capital. Earlier this week, Andrew Braccia, Yahoo’s vice president for consumer Web search, left the company to become a principal at Accel Partners.

The warm embrace of a plush VC office has always been an attractive option for entrepreneurs, either permanently or in the kind of deal Goldberg has, where he can ruminate on his next move in comfort. In an email he sent around yesterday, he wrote, “I will be looking at opportunities in consumer media and assisting Benchmark portfolio companies.”

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