Facebook's Complicated Ownership History Explained
Facebook co-founder, Eduardo Saverin, no longer works at Facebook. He hasn't since , when CEO Mark Zuckerberg diluted Saverin's stake in Facebook Your browser does not currently recognize any of the video formats available. . It was the high point in the relationship between the cofounders. Eduardo Saverin sued Facebook over breach of fiduciary duty. While other owners had their shares untouched, it was Eduardo's share that was. Eduardo Saverin on the cover of Veja (Photo by Gilberto Tadday) On the now infamous e-mail sent by Mark Zuckerberg to another Facebook cofounder, Dustin Moskovitz, in which he discusses On his current investments.
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- Eduardo Saverin
It depicts how, as Facebook grew in popularity, Saverin felt he was cut out of the business by his former best friend and also deals with allegations of "intellectual theft". Sean Parker, the party-going web entrepreneur who co-founded the Napster file-sharing site and became Facebook president at the age of 24, is portrayed by the pop star Justin Timberlake; he utters one of the most memorable lines in the script: You know what's cool?
Mezrich's book and Sorkin's script were based heavily on Saverin's story and Zuckerberg emerges from both as a fairly unsympathetic character: According to Sorkin, who emphasises that the characterisation is exaggerated: I don't think he'll ever speak publicly about what happened again. Zuckerberg, however, refused to co-operate either with Mezrich or the film-makers. He was always extremely bright and interested in technology, given to obsessive enthusiasms — the theme of his bar mitzvah was Star Wars — and curious habits, such as his penchant for wearing rubber-soled Adidas flip-flops even in the depths of winter.
Facebook co-founder Saverin: I don't resent Zuckerberg
As a teenager, he attended an elite, independent boarding school in New Hampshire, where he won prizes in maths, astronomy, physics and classical languages as well as being captain of the fencing team. In his spare time, he spent hours on his computer developing a music recommendation system called Synapse that both Microsoft and AOL tried to purchase.
Zuckerberg, already showing signs of the single-minded focus that was to become his trademark, flatly turned them down in order to concentrate on his studies at Harvard. His university contemporaries remember Zuckerberg — if they can recall him at all — as an introverted, pale student with curly brown hair and a wide-eyed, freckled face that gave him the air of an overgrown child. Almost everyone comments on his strange conversational manner: Only then would he respond, often curtly and with a single, unenthusiastic "Yeah" if the subject did not interest him.
And yet, for all that he might have seemed a little gauche, Zuckerberg possessed supreme confidence in his own abilities. He is not a delusionary visionary and that's what makes him kind of amazing.
It's a characteristic that belies his young age. It proved an instant hit — in under two hours, the site logged 22, votes — but was taken down after an outcry over privacy violations. At the time, a reporter from the university newspaper tried to contact Zuckerberg for a comment.
After the popularity of Facemash, Zuckerberg was convinced there was an appetite for an online student community with an irreverent twist.
'No hard feelings' towards Mark Zuckerberg, says ousted co-founder
The idea for Facebook germinated rapidly over the next few months. It would essentially be an online version of the "facebooks" given by American universities to new students each year which contained photographs and brief information on their contemporaries. But it would also incorporate functions like the ability to "poke" your friends — giving them a virtual nudge in the ribs.
Five days after it went live, the site had racked up almost 1, registered users. According to Moskovitz, who later became vice-president of the company, Zuckerberg "fell into the right situations a lot, and had extremely good timing.
Eduardo Saverin - Wikipedia
And when he saw a good idea he wanted to pursue it, whereas another person might have felt he needed to finish school first. In Junehe moved his operations and his roommates to a four-bedroom ranch house in Palo Alto, at the heart of Silicon Valley in California.
The living arrangements in Palo Alto were basically an extension of Suite H Zuckerberg and his friends rigged up a zip wire in the back garden that ran from the base of the chimney to a telegraph pole on the other side of the swimming pool. The house was filled with whiteboards, computer equipment and empty pizza boxes. They had raucous parties, complete with beer-drinking competitions, but they also worked hard: Zuckerberg assembled a small team of engineers and programmers who would type through the night, ironing out kinks in Facebook and developing new applications.
Mark didn't like to have his concentration broken. Then the twentysomething Sean Parker became the company's president. Despite his relative youth, Parker was a well-connected operator with a penchant for Tom Ford suits, BMW cars and wild parties. In fact, one of the most controversial scenes in the script for The Social Network depicts Parker being offered lines of cocaine from the bare breasts of a pair of teenage partygoers.
Whatever the truth of that particular episode, Parker was forced to leave Facebook after being charged with — but never convicted of — cocaine possession. Zuckerberg, by now quickly becoming one of the most influential entrepreneurs of the decade, still retained a distinctly undergraduate sense of humour and had a set of business cards printed with the words "I'm CEO A year later, Microsoft purchased a 1.
ByFacebook overtook MySpace as the world's biggest social network. Inthe site was operating in 27 different countries. And in MayZuckerberg celebrated his 26th birthday. Speaking in literal terms, that is how I see it: It is difficult to think of anyone else the same age who has had remotely the same global impact.
In New York, Saverin was beginning to feel sidelined. He also suspected, according to Mezrich, that his money was being spent rather more on beer kegs and zip wires than on legitimate business expenses. In a fit of pique, Saverin froze the company bank account.
Zuckerberg, forced to keep the site going with money intended for his college tuition, never forgave his friend. Gradually, Saverin was pushed out and his contributions as "business manager" were written out of the company history.
He recognised Mark as a genius and I think he idolised him a little bit. Unlike Zuckerberg, he was not willing to drop out of college to pursue the dream. Unlike Moskovitz, he did not prove his dedication by moving to Palo Alto to work through his summer holidays. And unlike Sean Parker, Saverin had limited experience in either computer programming or internet start-ups. But it was not just Saverin who had been left enraged by Facebook's success.
Several of Zuckerberg's Harvard contemporaries started creeping out of the woodwork to accuse him of stealing their ideas, including the Winklevoss brothers. Between November and and Februaryhe communicated with the twins through a series of 52 emails and several in-person meetings. A few days later, the Winklevosses and Narendra sent Zuckerberg a cease-and-desist letter. While HarvardConnection eventually launched a few months later, as ConnectU, it failed to gain traction.
ConnectU's founders filed a lawsuit against Zuckerberg inprompting a legal battle that dragged out for years. In Februarythe two sides finally settled.‘Social Network’ (2010) Argument between Mark and Eduardo
That wasn't the end, however. In Marchthe ConnectU founders filed another lawsuit, attempting to rescind the settlement. They argued that Facebook misled them over the true value of the stock.
The twins also sued their law firm, Quinn Emanuel, for malpractice. It's a confusing tangle of lawsuits, but the bottom line is that the Winklevoss twins settled their case with Facebook years ago.
Their recent attempts to change that settlement are falling flat. The twins, of course, are appealing that ruling. What About Paul Ceglia? Now for the question that has been causing headlines this week: That's the notion that Ceglia, owner of a wood pellet fuel company, put forth in a lawsuit filed last July. The story sounded outrageous on the surface, especially as Ceglia had waited a full six years before speaking up. Furthermore, Ceglia is a a convicted felon.
This week, however, the lawsuit resurfaced. Ceglia refiled his case with prominent law firm DLA Piper and said he has produced email conversations that support his claims. Allegedly, Zuckerberg and Ceglia discussed details such as the site's domain name and business model.
The suit says Zuckerberg mentioned the Winklevoss twins in Novembertelling Ceglia that he had "stalled them for the time being. Things allegedly blew up in Apriltwo months after Facebook's blockbuster launch. Zuckerberg is supposed to have told Ceglia he was thinking of taking the server down and wanted to give Ceglia his money back. Ceglia responded negatively, claiming that Zuckerberg was pulling "criminal stunts. Facebook insists that the emails and contract are fabricated.