Social networking site Facebook announces departure of CFO Gideon Yu

Facebook, the fast-growing online social network, said yesterday its CFO, Gideon Yu, was leaving the company. Facebook, which is privately held, did not offer an explanation for his departure but said it had hired an executive search firm to find a successor with experience in running a public company.

Yu had been a highly touted hire at Palo Alto, California-based Facebook in 2007, having come from Google Inc.'s YouTube unit. Prior to that, Yu had worked as treasurer at Google rival Yahoo Inc. However, Facebook spokesman Larry Yu said it's now seeking a finance chief with more experience at a public company. Gideon Yu's strengths were primarily seen in helping young companies - like YouTube - develop in their early stages.

"We've gotten quite a bit larger," Larry Yu said. "What we're looking to hire is someone with experience leading a finance organization at a public company."

"Gideon has played an important role in helping us achieve our financial success, building a strong finance team and establishing the core financial operations of our company," Facebook said in a statement. "Despite the poor economic climate, we are pleased that our financial performance is strong and we are well positioned for the next stage of our growth."

Facebook's social network has become tremendously popular, registering hundreds of millions of users. It's also attracted a wide range of investors, including a $240 million infusion from Microsoft Corp. in 2007, which garnered Microsoft a mere 1.6-per cent stake in the high-flying startup. (See: Microsoft pips Google to acquire a stake in Facebook)

But Facebook has struggled to develop a business model to tap into its growing popularity. To that end, it has tested a number of innovative advertising models, though it also has been chastened by users concerned that such initiatives threaten their privacy.

Founded in 2005, Facebook is expected to pull in some $230 million in revenue this year, compared with an estimated $210 million last year. Last week, BusinessWeek reported that the company has been trying to secure as much as $100 million in additional debt financing, as it grapples with increasing demand for infrastructure needed to support its mushrooming number of users.