The story of Mark Zuckerberg, Eduardo Saverin, and the early days of Facebook has been dramatized in the film “The Social Network.” While the film captures the essence of their dispute, it’s essential to remember that the actual events might be more nuanced. Let’s dive into the rift between Mark Zuckerberg and Eduardo Saverin:
How Did Mark Zuckerberg Screw Over Eduardo
The Origins of Facebook:
In 2004, Mark Zuckerberg, while a student at Harvard, started Facebook as a social networking platform exclusively for Harvard students. Eduardo Saverin, a fellow student and Zuckerberg’s friend, provided the initial funding and became Facebook’s first CFO and business manager.
The Crux of the Dispute:
- Differing Visions: As Facebook began to gain traction, the differences between Zuckerberg and Saverin’s visions for the company became evident. While Zuckerberg saw the platform’s potential to scale globally, Saverin was more focused on monetizing the platform quickly, for instance, via advertisements.
- Relocation to California: Zuckerberg decided to move to Palo Alto, California, during the summer, believing that being in Silicon Valley would be essential for Facebook’s growth. Saverin, on the other hand, stayed on the East Coast to work on business aspects, such as advertisement deals. This physical separation further strained their relationship.
- Dilution of Shares: The main controversy arose when a new share structure was implemented. This diluted Saverin’s shares from a significant percentage to below 10% without his immediate knowledge. The dilution mainly benefited Zuckerberg and the new investors, while Saverin’s influence in the company was marginalized. Zuckerberg and the team believed this move was necessary to keep the company agile and not be tied down by Saverin’s contrasting business views.
- Freezing of Bank Accounts: At some point during their disputes, Saverin froze Facebook’s bank accounts due to disagreements over how the company’s money was being used. This action is portrayed in the movie, but its accuracy and the reasons behind it remain debated.
The Aftermath:
Eduardo Saverin filed a lawsuit against Facebook, which was settled out of court. Post-settlement, Saverin’s co-founder status was reaffirmed, and he retained a reduced but still significant percentage of the company’s shares. Today, even after selling some of his shares, Saverin is a billionaire due to Facebook’s immense success.
Conclusion:
The story of Zuckerberg and Saverin is one of ambition, contrasting visions, and the challenges of managing a rapidly scaling startup. While both played crucial roles in the early days of Facebook, their paths diverged due to differences in their approach to the business and personal disagreements. It’s essential to approach this topic with an understanding that the events are multifaceted, and the movie’s portrayal may not capture every nuance accurately.
