Facebook Begins Its Courtship of Washington

by Dan Lyons Info

Dan Lyons is technology editor at Newsweek and the creator of Fake Steve Jobs, the persona behind the notorious tech blog, The Secret Diary of Steve Jobs. Before joining Newsweek, Lyons spent 10 years at Forbes.

Barack Obama is now friends with Mark Zuckerberg. The two powerful men sat down Wednesday at a town hall event at the headquarters of Zuckerberg’s company, where the president tackled questions about the recent wave of Arab revolutions, how to provide access to new technologies, and how to bring down the U.S. deficit. For the latter topic, Obama pitched the idea of raising taxes on the wealthy—meaning people like himself and Zuckerberg. “I’m cool with that,” Zuckerberg replied, to laughter. “I know you’re cool with that,” Obama replied.

Dan Lyons on why Obama needs Facebook for reelection, and the company needs him to stay in Congress’ good graces.

When President Obama visited with some Silicon Valley big shots in February, the tech blog Business Insider ran a photo of the president chatting with Facebook founder and CEO Mark Zuckerberg.

Below the photo, a commenter called “pauldeba” posted: “I gotta say, it must feel impressive meeting the most powerful man in the world. I wonder how Obama feels about it.”

Think about it. Zuckerberg’s company has 600 million members, making it about twice as big as the United States.

So the true significance of Obama’s visit Wednesday to Facebook headquarters in Palo Alto, California, didn’t involve anything the president says. Simply by doing this event, a town-hall meeting broadcast on the Internet, the White House is recognizing Facebook’s growing power and influence in politics and the culture at large.

What TV was to John Kennedy, Facebook is to Obama. Social media in general, and Facebook in particular, have become so important to politics that you almost can't run for president without mastering the new medium.

The event also reflects the way that Facebook, from the very beginning, has learned how to curry favor in Washington. Unlike tech giants Microsoft and Google, which shunned Washington and refused to play the game, and as a result ended up in hot water with regulators, Facebook recognized the need to build bridges with lawmakers early on.

One of the smartest things Zuckerberg ever did was to bring aboard Sheryl Sandberg, the company’s chief operating officer, who will play co-host during the Obama town-hall meeting. Sandberg came to Facebook from Google, but before that she was a power player in D.C., serving as chief of staff under Larry Summers during his tenure as secretary of the Treasury. She’s now a member of the recently formed President’s Council for Jobs and Competitiveness.

Obama needs Facebook to help him get reelected. Facebook needs Obama to keep them out of trouble with Congress and countless government agencies.

Pablo Martinez Monsivais / AP Photo

After Sandberg joined Facebook, she brought along a fellow Google exec, Elliot Schrage, who before coming to Silicon Valley worked at the Council on Foreign Relations. Schrage, a lawyer by training, serves as Facebook’s head of global communications and public affairs.

Chris Hughes, a Facebook co-founder, ran Obama’s 2008 social-networking operation via a website called My.BarackObama.com. More recently, Facebook has been rumored to be wooing Robert Gibbs, Obama’s former White House press secretary, to come aboard in a senior communications role. Last year Facebook poached Marne Levine, a White House economic adviser, to help run its global public policy efforts.

All this cross-pollination prompted Politico on Tuesday to question whether Obama and Facebook are getting too cozy.

Thing is, when it comes to dealing with the government, Facebook needs to get as cozy as it can. This company is gathering more personal information about more people than any other company ever, even more than Google. Suddenly it is dawning on everyone, including members of Congress, just how much power Facebook is amassing.

Facebook has already landed in hot water with lawmakers for changing its privacy policies in ways that some found creepy and opportunistic. In April 2010, Facebook caused an uproar by introducing new rules that pushed users to share more information about themselves.

When users and privacy advocates howled, Facebook’s spinmeisters claimed, laughably, that the new policy was meant to help members, not hurt them, and that the site simply hadn’t done a good enough job of explaining this fact.

When that didn’t wash, Facebook did what it had done in previous skirmishes—it agreed to dial back the changes, a little bit, while leaving much of the encroachment in place.

12 April 20, 2011 | 1:22am Twitter Email Share var OutbrainPermaLink=document.location.href.replace(document.location.search, '').replace(/\/\d+\/$/,'/').replace(document.location.host, 'thedailybeast.com'); if(OutbrainPermaLink.search(/blogs-and-stories/)>=0){ OutbrainPermaLink += "full/"; } var OB_Template = "The Daily Beast"; var OB_demoMode = false; var OBITm = "1255455386150"; var OB_langJS ='http://widgets.outbrain.com/lang_en.js'; if ( typeof(OB_Script)!='undefined' ) OutbrainStart(); else { var OB_Script = true; var str = ''; document.write(str); } » Will Mike Huckabee Take the Presidential Plunge? » The Raj Trial and Wall Street's South Asian Elite » Bond King Bill Gross: America Won't Default » Christie Vilsack, the Woman Who Could Shatter Iowa's Glass Ceiling » Best Celebrity Branded Booze Politics , Barack Obama , Business , Facebook , Google , Robert Gibbs , Mark Zuckerberg , Microsoft , Social Media , Chris Hughes , Sheryl Sandberg , Privacy Settings  (–) Show Replies Collapse Replies Sort Up Sort Down sort by date: 12 dalelama

Soetoro caught doing the Chicago shakedown. I thought only Repubs were in bed with big business. Another liberal myth exposed.

Flag It | Permalink | Reply | (–) Show Replies Collapse Replies 3:17 am, Apr 20, 2011 lillymckim

Yes... just another good reason not to use Facebook Obama and Facebook are TOO COZY for comfort ...too cozy.

Flag It | Permalink | Reply | (–) Show Replies Collapse Replies 9:49 am, Apr 20, 2011 RevPettibone

What do you bet Zuckerberg gets a real sweet tax deal for crawling into bed with Obama... I mean, given GE's example, why would any businessman not want to follow Immelt's lead? And let's not forget the epicenter of progressive liberalism on Wall Street, Goldman Sachs. I mean after all, Obama hasn't done bad by them either.... nor will he in the future.

Flag It | Permalink 11:08 am, Apr 20, 2011 lillymckim

oh yea Rev.. Obama is schooling em' on some sweet heart deals

Flag It | Permalink 12:16 pm, Apr 20, 2011 johnnynyc

This is like Nixon whining about television making Kennedy look good!! Any leader worth his salt promotes and uses the latest technology his country has to offer. There's nothing new about that.

Flag It | Permalink 4:12 pm, Apr 20, 2011 johnnynyc

"What do you bet Zuckerberg gets a real sweet tax deal for crawling into bed with Obama... I mean, given GE's example, why would any businessman not want to follow Immelt's lead?" Yeah I'm sure a repub house would approve of a sweet deal!! If you think corporations including GE started getting tax breaks in 2009 when obama took office you've got a lot to learn.

Flag It | Permalink 4:15 pm, Apr 20, 2011 T1Brit

Both President Obama and Facebook represent the very best and most promising characteristics of the new century. They are the enlightened future. Even retards will benefit. Relax guys.

Flag It | Permalink | Reply | (–) Show Replies Collapse Replies 11:08 am, Apr 20, 2011 tanamarie

"Even retards will benefit." Well aren't you Mr. Enlightened. Representing the very worst of the self centered bigots that are bouncing around on the web.

Flag It | Permalink 12:27 pm, Apr 20, 2011 T1Brit

Just defending your president and brightest business star from the attack of the munchkins tanamarie :)

Flag It | Permalink 3:56 pm, Apr 20, 2011 T1Brit

p.s. retard just means slow doesn't it? If it is politically unacceptable to call somebody slow then how would you describe a person of limited intelligence? challenged? Special maybe. But then the word special is corrupted and no longer has a clear meaning in everyday use. And thus the greatest language in the world is slowly strangled to death.

Flag It | Permalink 4:02 pm, Apr 20, 2011 Loxinabox

"The S&P told the truth about Obama asking them to lie to the American people about dropping our AAA rating. I would have thought Obama had a little more power than that." So true when Obama goes back to Chicago Rahm and the boys are going to laugh in his face! Who would have thought Obama could give Chicago politician­s a bad name? As always you can contact me at work http://www.michigan-businessreview.com and yes keep those jokes coming. "Too bad GE paid NO TAXES" They did the taxes just went directly to the Obama reelection campaign fund which as of today became Obama's pocket!

Flag It | Permalink | Reply 2:36 pm, Apr 20, 2011 Ozone69

Town Hall? You mean campaign. Wasn't he supposed to focus on the economy like a laser beam? S & P just downgraded our outlook. That is the first time in history that has happened. We are $14 trillion in debt and unemployment hasn't budged. Underemployment is obscene and the price of gas is going through the roof. Can we get some adults who know what they are doing in the WH please.

Flag It | Permalink | Reply | (–) Show Replies Collapse Replies 7:05 am, Apr 20, 2011 lillymckim

Town Hall? my azz .. NO he's campaigning on our dime... campaign basket in one hand and golf clubs in the other... Another reason NOT to use Facebook!

Flag It | Permalink | Reply | (–) Show Replies Collapse Replies 9:45 am, Apr 20, 2011 Loxinabox

Obama is over even Pelosi bailed on his sorry black as

Flag It | Permalink 3:30 pm, Apr 20, 2011 YearsLaterXXI

Ozone, Wash does not listen nor care nor conciders the people important.It is a political body ,and our system perpetuates this whole travesty.We need 10 brilliant leaders 10,10 diff departments 10 diff agencies 50 more and 1 sen. per state,and rebuild the USA.Everytime one of these guys or gals, fly anywhere it costs millions and millions who is going to fix anything?.Liberals conservatives visit Brazil ,our american factories are there. they are spending buying, growing,and resources to dream.But are those companies paying taxes here.?The employment and growth is everywhere but here. Does anyone have a problem that so many, american companies,are in bangladesh.?They stoned a child to death and who has requested No Bangladesh companies,employees talking to us?We hang up or ask for a USA supervisor, they do not exist.We are spending billions and billions and agfgahn and lybia?We are totally doomed, unless really some rogue leader, with visions and ideals takes over this counry and Tells the congress to,take a hike,and restructure it with the people of this country behind it. If not, it is all the same they are all policians and Yeak.!!!!!Bailed out wallstreet and families, poor ,middle class, working,struggling were left out to die,and buss to die,under the democrats?Just govt hiring more bloating ,more lazy ,guranteed healthcare retirement and benefits.? big buss got money and the fortunes being made again by those who crippled the country.?Credit ratings?No one can get anything from a bank but the US has bad ratings?ja,ja,there is such wealth being made now abroad with global but leaving this country behind.and NO one No One in Wash has a clue nor concern how to help.Trully,sad and the people from one end to the other,feel,beaten down and feel like sheep.hearded for slaughter.An impending doom,but Hey, elections are coming?Enough to throw up.have a good day everybody, the best is yet to come.Gas will hit 5.00 and then 6 and 7 as hose in power consume all and buy all ,and will lead and set demands.Anyone in Wash looking into oil trading,??speculators. Yes Mr president, but Zuckerberg is smarter than all.

Flag It | Permalink | Reply 9:57 am, Apr 20, 2011 wareagle82

ozone, getting adults in DC would mean 1) finding 500 mostly sane and relatively productive individuals willing to give up a big chunk of their lives, and 2) getting rid of damn near everyone in elected office. The establishment crowd, those with 15 years in town, are the heart of the problem regardless of party. Best thing about the TP folks is their normalcy; they are not career pols, but regular people who finally had enough. For their trouble, they are branded as radicals, extremists, and everything else. My favorite pejorative is when they are called inexperienced as though the vast experience of the entrenched political class is a benefit to us.

Flag It | Permalink | Reply | (–) Show Replies Collapse Replies 11:16 am, Apr 20, 2011 Tony Hines

WDE!

Flag It | Permalink 12:03 pm, Apr 20, 2011 newswoman

How many times, Ozone, have you conservatives said that government doesn't provide jobs, but business does? Hmm? Now, you say it's the government's duty to provide jobs. You make my head spin.

Flag It | Permalink | Reply | (–) Show Replies Collapse Replies 7:38 am, Apr 20, 2011 comink

How many times are you going to twist someone else's words? That's not what Ozone wrote at all.

Flag It | Permalink | Reply 8:41 am, Apr 20, 2011 yourmama

newswoman It's Obama that thinks government should provide jobs, and indeed his friends got them there.. Just another failing idea from the inept one.

Flag It | Permalink | Reply 9:32 am, Apr 20, 2011 lillymckim

I just "friended" Obama's teleprompter in the hopes of getting a preview of the content of the townhall. If Obama answers most questions by referring everybody to "the article in the New York Times," we'll know Gibbs has secured the Facebook gig. **Written by Doug Powers TOO damn funny!!

Flag It | Permalink | Reply 10:01 am, Apr 20, 2011 TomKinney

Government may provide jobs, but they are spoils system jobs that draw zero revenues into the Big Government coffers. They only serve to drain them. These are the kinds of jobs of which you hear stories of guys with six figure incomes surfing porn sites all day in their lush offices and playing online poker. And then they retire at 55 to six figure annual pension plans and live another 35 years. That really helps the economy, doesn't it?

Flag It | Permalink | Read Full Article »