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Zuckerberg's China trip sparks Facebook frenzy
by Staff Writers
Shanghai (AFP) March 28, 2012

This picture taken on December 25, 2011 shows Facebook's founder and billionaire Mark Zuckerberg (2nd L) and his girlfriend Priscilla Chan (2nd R) during their private trip to Ha Long Bay in the northeastern province of Quuang Ninh. The young billionaire and his girlfriend who are the target of local media reportedly arrived to Hanoi on December 22, 2011. They are on December 26, 2011 visiting the northern mountainous tourist site of Sapa, according to local media saying the couple received a two-week long Vietnamese tourist visa. Photo courtesy AFP.

The sight of a vacationing Mark Zuckerberg in Shanghai has sparked a frenzy of online speculation over the possibility Facebook might return to China, even though the site remains firmly blocked.

Excited Chinese bloggers posted photographs of the Facebook founder and his girlfriend at an Apple store and in Shanghai's art gallery district on Tuesday, expressing hopes it might mean access to the popular social networking site.

"Does this mean... Facebook is preparing to be unblocked?" said Kelisisong on the popular Sina microblog service, a Chinese version of Twitter.

Facebook has more than 800 million users around the world and is the leading social network in all but six countries, notably Russia, where local rivals are preferred, and China, where it has been banned since 2009.

Last month the California-based company said it continued to "evaluate entering China" -- the world's largest Internet market -- as it filed paperwork seeking to raise $5 billion on Wall Street.

Analysts say Facebook's chances of re-entering the market of half a billion Internet users are slim.

Nonetheless, China's Internet users speculated the billionaire Zuckerberg might be seeking to make inroads into the market during his time in China.

"China has always been the centre of attention (for foreign technology firms)," said blogger Qimeng Luosong. "Maybe tomorrow morning when we get up, we can open Facebook."

Beijing attempts to block content it deems politically sensitive through a censorship system known popularly as the "Great Firewall of China". Web users can only access blocked sites through virtual private networks.

Zuckerberg said previously that he was "spending a lot of time" studying Chinese and visited the country in December 2010 with his girlfriend Priscilla Chan, when he met with the head of the country's biggest search engine Baidu.

Analysts believe Zuckerberg and Baidu were discussing a possible tie-up that could enable Facebook to enter China, but were forced to abandon the talks after the Arab Spring protests of early 2011 spooked Beijing.

Apple customers, who recognised Zuckerberg dressed in his trademark jeans, sneakers and hoodie asked to take photos with him but he declined.

"Zuckerberg introduces himself to mainland China in this way: 'Hi, I am the founder of the website page not found,'" another blogger joked, referring to the message users see when trying to view a blocked site.

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Aspiring Facebook investors warned of Yahoo! lawsuit
San Francisco (AFP) March 27, 2012 - Facebook on Tuesday warned potential investors that a patent lawsuit against the company by Internet pioneer Yahoo! could deliver a significant blow to its business.

The world's leading online social network amended initial public offering (IPO) paperwork with the US Securities and Exchange Commission to include the Yahoo! case among risks to the company's bottom line.

"This litigation is still in its early stages and the final outcome, including our liability, if any, with respect to these claims, is uncertain," Facebook said in the updated SEC filing.

"If an unfavorable outcome were to occur in this litigation, the impact could be material to our business, financial condition, or results of operations."

Yahoo! filed suit against Facebook in a US District Court in California court on March 12, accusing the startup of infringing on 10 of its patents in several areas including advertising, privacy and messaging.

Sunnyvale, California-based Yahoo! asked the court to order Facebook to halt its alleged patent-infringing activities and to assess unspecified damages.

"We are confident we will prevail," Yahoo! said in a statement when the suit was filed.

Yahoo!'s lawsuit came about five weeks after Facebook filed to go public on Wall Street with an estimated valuation of up to $100 billion.

Patent suits are a frequent occurrence among smartphone and tablet computer makers, and the world's best known brands are ensnared in a complex web of legal claims.

Such suits, however, have been rare among social media companies.

Facebook, which was founded in 2004, a decade after Yahoo!, expressed disappointment with the Yahoo! move.

In the suit, Yahoo! said that Facebook's growth to approximately 850 million users "has been based in large part on Facebook's use of Yahoo!'s patented technology."

Yahoo! said Facebook's popular "News Feed" feature, for example, is "directly linked to Facebook's infringement" of Yahoo! patents and its advertising model is based on advertising patents held by Yahoo!.

"We have not yet filed an answer or asserted any counterclaims with respect to this complaint," Facebook said in the SEC filing. "We intend to vigorously defend this lawsuit."

Once seen as the Internet's leading light, Yahoo! has struggled in recent years to build a strongly profitable, growing business out of its huge Web presence and global audience.



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