After it moves this summer, Facebook will have a total of 79 acres in Menlo Park, Calif., for its new world headquarters.
Facebook confirmed Feb. 8 what eWEEK
reported on Feb. 4
: That the world's largest social network has acquired
the 57-acre former Sun Microsystems campus in Menlo Park,
Calif., now owned by Oracle, to use as its
future world headquarters.
The company also revealed that it has bought two neighboring parcels across
the highway and a few blocks west to use if more expansion is required in the
coming years. In all, Facebook will have a total of about 79 acres in Menlo
Facebook made the announcement before a horde of media people at Menlo
Park City Hall.
Chief Financial Officer David Ebersman said Facebook would probably make the
10-mile move north during June and July this year.
The deal was described a sale leaseback, which entails a 15-year lease from
Oracle with an option to purchase the property after five years, Ebersman said.
Terms were not disclosed.
Facebook will keep its current location in Palo Alto,
but the Menlo Park campus will
become its headquarters.
After it is relocated, the company will live a mere four freeway exits-or
about 4 miles-south of Oracle, the world's second-largest software company.
Both enterprises will share the San Francisco
Bay as its backdrop.
The 11-building Sun campus has been vacant for most of the last few months
after Oracle acquired Sun in January 2010. Sun had employed about 2,000 people
on the site, which is capable of accommodating around 3,000 employees.
Room for New Employees
Facebook currently employs about 1,400 people in Palo
Alto and a total of 2,000 globally. Like numerous
other Web 2.0 companies, it is in a hiring mode.
A public clue to all of this turned up last month in an agenda item for a
committee hearing on the Menlo Park
city budget, which involved "finalizing land use entitlements for a new
tenant at Sun campus."
Other local sources not affiliated with Facebook-including one of the
contractors who will be refurbishing the campus-had confirmed the acquisition
earlier to eWEEK, although due diligence in the transaction apparently was
still being performed last week.
Two days after Christmas 2010, Facebook quietly acquired two neighboring
properties to the former Sun campus, 312 and 314
Constitution Drive. San
property records indicate the land was bought by a shell company, Giant
Properties LLC, which lists the address Facebook uses in Palo
The former Sun campus at 17 Network Circle-at the intersection of Bayfront
Expressway and Willow Road and at the west end of the Dumbarton Bridge-was
built by Sun in the early 1990s and was the site of much of the company's Java,
server and mobile applications research and development. All of the company's
marketing groups were located there, as well as an impressive executive
The location has been described as resembling a movie studio or movie set,
due to its colorful exterior.
Facebook's current headquarters is a former
Hewlett-Packard building located a few blocks from the Stanford University
in a residential neighborhood of Palo Alto.
The company moved into that building in July 2009 from its former offices in
downtown Palo Alto, where it had
been for three years.
The city of Menlo Park, like so
many other municipalities around the nation, certainly will welcome the
addition of a multibillion-dollar-earning company such as Facebook.
The city, located about 30 miles south of San Francisco,
has suffered a major loss of property tax revenue during the last three years
due to the slumping macroeconomy. A number of downtown businesses-mostly
automobile sales and other retail businesses-have been forced to close their
doors since 2008.