Should Mark Zuckerberg Be Worried About Peter Thiel?

A Deep Dive into Peter Thiel and His Influence

Recent discussions have centered around “The Contrarian,” a new biography of billionaire investor Peter Thiel penned by Max Chafkin, a veteran Bloomberg Businessweek features editor and tech reporter.

Thiel’s growing prominence within the United States makes this book particularly noteworthy. Chafkin’s work is a compelling narrative, built upon 15 years of reporting and insights from “hundreds of sources,” as acknowledged by the author.

Insights from a Conversation with Max Chafkin

We recently engaged in a detailed conversation with Chafkin, exploring the extent to which Thiel revealed aspects of his personal life, the motivations behind his support for Donald Trump, and the perceived inconsistencies within his beliefs. This discussion also touched upon Thiel’s longstanding relationship with Mark Zuckerberg.

The 30-minute interview is available for listening. Here, we present an excerpt focusing on the dynamic between Zuckerberg and Thiel, a relationship deemed particularly significant given Facebook’s societal impact.

Thiel’s Influence on Facebook’s Direction

TC: Your book suggests Thiel’s most impactful investment was Facebook, and that he leveraged his board position since 2005 to advocate for a permissive approach, even regarding misinformation. You also indicate a growing tension between Thiel and Zuckerberg, particularly with Thiel’s embrace of Trumpism. What is your outlook on Thiel’s future as a Facebook board member, and do you believe his influence has waned?

MC: The book recounts an incident following Facebook’s initial public offering, when the stock price declined. Thiel addressed employees, attempting to boost morale during a period of negative press and legal challenges.

During his speech, he famously remarked, “My generation was promised flying cars. Instead we got Facebook.” This statement, typically directed at Twitter, was aimed at Facebook in this instance, and was perceived by Zuckerberg as a critical assessment of his creation.

However, Zuckerberg appears to value this candid feedback from Thiel, as it is rare for him to receive honest critiques. Over the past few years, Thiel has increasingly voiced concerns about tech monopolies and the power of large technology companies.

He often singles out Google, potentially diverting attention from Facebook, though the similarities between the two companies suggest that regulation of one could lead to the regulation of the other. Zuckerberg may not welcome this scrutiny.

Thiel’s Political Activities and Their Impact

Thiel has actively supported conservative activists and projects, subtly embracing those critical of big tech companies like Facebook, Google, and Apple. He is now publicly backing candidates in U.S. Senate races, Blake Masters in Arizona and JD Vance in Ohio, contributing ten million dollars to super PACs supporting them.

These candidates frequently attack Facebook, with a JD Vance ad, funded by Thiel, featuring Zuckerberg as a symbol of an out-of-touch elite. This presents a continual challenge for Zuckerberg.

In 2017, Zuckerberg even inquired whether Thiel should resign, but Thiel remained on the board, indicating existing tensions. With a Democratic administration in power, Thiel’s connections to the right may be less valuable.

However, a potential Republican takeover of the Senate in 2022 could significantly increase his influence, particularly if senators close to Thiel are elected.

The Complex Dynamic Between Zuckerberg and Thiel

TC: Your book notes that many close to Thiel both admire and fear him. Given Zuckerberg’s position as a global power figure, do you believe he is intimidated by Thiel?

MC: Zuckerberg possesses the ability to remove Thiel from the board. He has the financial resources to withstand any resulting conflict and backlash.

However, he may hesitate, as Thiel’s presence provides a strategic advantage. Thiel’s controversial reputation shields Facebook from accusations of being a liberal company biased against conservative viewpoints.

Thiel’s staunch support for Donald Trump serves as a powerful counterargument to claims of anti-conservative bias. Attacks from figures like Josh Hawley and Ted Cruz, both recipients of Thiel’s financial support, carry less weight with Thiel on the board.

Should Thiel depart, particularly if forced out, Facebook would become vulnerable to increased scrutiny. While not an existential threat, maintaining Thiel as a board member may be a more comfortable position for Zuckerberg, despite their differing opinions on Facebook’s value.