Friendster is the recent scapegoat for the biggest Dot Com flop since Pets.com. Jonathan Abrams, founder, is the one taking most of the blame. While Abrams' new project Socializr (Evite copycat) is gaining market share, his indisputably darkened reputation is the reason Harvard Business School uses him as a case study of how NOT to manage a tech company. Friendster turned down a $30 million buyout offer from Google in 2003 to find its current market share diminish down from 1st to the 13th  among the social networking sites, and current evaluation to be around $3 million.

Interestingly  enough, Friendster was not the first failure for Abrams. After working as a software engineer for Netscape, Jonathan's first startup project was HotLinks, which ran out of money in 2001.

Read more in a great cover story on how too much success can lead to forgetting to solve most trivial problems of software, and having too many cooks in the kitchen can lead to a dysfunctional company - from Inc magazine right here.