Mark Zuckerberg has been the face of Facebook for many years. Since its founding, the company has grown exponentially, becoming one of world’s largest social media networks. But it wasn’t always smooth sailing for Zuckerberg and the Facebook team. In the early days of Facebook, Zuckerberg had a close confidant and business partner in the form of Eduardo Saverin, the CFO of the company. But a conflict between the two led to a dramatic falling out between Zuckerberg and Saverin and the two stopped being friends. So is Mark Zuckerberg still friends with Eduardo Saverin? This article takes a look at what happened between the two and tries to answer this question.
The Zuckerberg & Saverin Partnership
Mark Zuckerberg and Eduardo Saverin initially met in 2003 at Harvard, where the two became close friends and started working on the Facebook idea. Both infused their own money into the project, with Saverin providing most of the initial capital; the pair split the equity 50/50, with Saverin as the CFO of the company. By August 2004, Facebook had become available for students attending colleges and universities outside Harvard, leading to a massive expansion in growth. Tensions began to rise as Zuckerberg increasingly took control of the company, raising the hackles of Saverin who felt Zuckerberg was dishonestly arguing for more control.
The Facebook Lawsuit
In 2004, Saverin was fired as the CFO and ejected from the company, which led to a lawsuit. The case against Zuckerberg was finished when Saverin’s investment of $38 million was received in the form of 5 million shares of Facebook stock. The two sides eventually settled, with Saverin receiving $1.37 billion in 2009, which was a quarter of his initial stake in the company. It’s thought that the reason he didn’t receive more money was as a result of Saverin attempting to renounce his U.S. citizenship to avoid paying capital gains tax, something which he allegedly did without informing Zuckerberg.
Mark Zuckerberg’s Reaction
In 2019, it was reported that Zuckerberg was looking to “connect” with Saverin again. On the other hand, Saverin has reportedly been “fuming” over the Facebook settlement, and it’s thought that the two are not on speaking terms anymore. For his part, Zuckerberg has said he doesn’t plan on being friends with Saverin anytime soon.
Are The Two Still Friends?
Given the lawsuits, animosity and ill feelings surrounding the Saverin vs. Zuckerberg case, it appears unlikely that the two will ever be friends again. Saverin contributed a great deal to the founding of Facebook, which likely still irks Zuckerberg given the drastic change in their relationship over the course of the company’s history. Still, at one point the two sides had a working relationship that seemed to be a success for both of them, which might make it difficult for them to become friends again.
Media And Public Response
Speculation around the former friendship has been rampant around the media. Media outlets have had a field day covering the story, often using a negative spin when covering it. It’s thought that the public has largely taken on a negative attitude towards Zuckerberg, in part due to his portrayal as the villain in the movie ‘The Social Network’, which focused on the story of the two co-founders.
Overall, it appears that the two may never be friends again, given the legal battles and the public perception of Zuckerberg’s character. It’s uncertain whether or not they’ll be able to mend fences and reconcile their past public and personal differences. Only time will tell if the two will be able to bridge their gaps and reconcile.
Social Repercussions
The Facebook and Saverin case is an important lesson in the technology world, as it teaches young entrepreneurs the importance of having legal advice and properly structuring their companies from the start. It serves as a cautionary tale to all tech founders who are just starting out, as it warns them to have proper legal advice and to take their business partner’s interests into account to avoid any similar issues.
The case also serves as a reminder of the importance of good communication between co-founders, as it’s thought proper communication between the two would have ensured that Saverin was properly compensated for his early contributions. It’s also thought that the case has had a general trend of making entrepreneurs more hesitant in taking on new business partners due to the complexities of Facebook’s falling out.
Public Perception Of Zuckerman
It’s thought that public perception of Zuckerberg has been negatively impacted by the Saverin fallout. Since then, people have been hesitant to support the Facebook CEO and take him seriously as an entrepreneur and business leader. Despite his success and numerous accolades, Zuckerberg is still thought of by some as a villain instead of a hero due to his involvement in the Saverin trial.
The incident has been noted by academics as an example of when a legal battle is not cost effective. Often times, founders can settle issues amicably and without resorting to a court battle. This case could have been handled better if the two parties had communicated better with each other.
The Role Of Equity Distribution
From a legal perspective, the case demonstrated the importance of careful equity distribution. Because Saverin and Zuckerberg had been close friends and worked together on Harvard, Saverin had expected absolute control of the company, despite the fact that he had invested significantly less money compared to Zuckerberg. This led to a massive legal battle that could have been avoided if there had been a proper plan in place for the equity distribution.
It’s thought that the case has served as a warning to entrepreneurs about the importance of equity arrangements, and the potential consequences of incautiously dealing with friends and business partners. It’s thought that it’s important for entrepreneurs to distinguish between their personal relationship and the relationship of their company.
The Bottom Line
It’s unlikely that Zuckerberg and Saverin will ever be friends again. Their tumultuous relationship has likely forever changed the way they view each other, and both are in different places in their lives. However, it is possible that they could at least reconcile their differences and mend their relationship. It appears that they’ll both need to let go of their animosity and pain that they caused each other and move on in their lives.
Regardless, it’s clear that the story still resonates within the public, as it serves as a lesson to those in the tech community to be careful in their dealings with friends and business partners alike.
