Eduardo Saverin, one of the co-founders of Facebook, played a crucial role in the early days of the company. However, his relationship with Mark Zuckerberg soured, leading to legal battles and a major settlement. The question of how much Saverin received from Zuckerberg remains a topic of interest, especially for those curious about the history of Facebook’s founding.
The Beginnings of Facebook
Eduardo Saverin and Mark Zuckerberg were Harvard students when they co-founded Facebook in 2004. Saverin provided initial funding, reportedly around $15,000 to $20,000, which helped Zuckerberg launch the social media platform. While Zuckerberg focused on developing and expanding Facebook, Saverin managed business aspects, including advertising and monetization.
As Facebook grew, tensions emerged between the two founders. Saverin was largely absent from the daily operations as Zuckerberg and other team members moved to Palo Alto, California. This growing distance led to disputes over ownership and decision-making within the company.
The Legal Battle and Lawsuit
By mid-2004, Mark Zuckerberg and other early Facebook team members, including Sean Parker, sought venture capital investments. Around this time, Eduardo Saverin’s shares were significantly diluted, reducing his influence within the company.
Saverin responded by filing a lawsuit against Facebook and Mark Zuckerberg, claiming he had been unfairly cut out of the company. In response, Facebook countersued, alleging Saverin had improperly managed company funds.
The legal battle lasted for several months, but it eventually led to a settlement in 2009. The exact financial details of the settlement were not made public, but reports suggest that Saverin retained a 4% to 5% stake in Facebook.
How Much Did Eduardo Saverin Receive?
Estimating His Facebook Stake Value
At the time of Facebook’s initial public offering (IPO) in 2012, the company was valued at $104 billion. If Saverin still held around 4% to 5% of Facebook shares, his stake would have been worth approximately $4 billion to $5 billion.
Over the years, as Facebook’s value continued to rise, Saverin’s net worth also grew. Facebook, later rebranded as Meta Platforms, Inc., saw its stock fluctuate, but generally, it remained one of the most valuable tech companies in the world.
Saverin’s Wealth Today
Eduardo Saverin is now a billionaire, with an estimated net worth exceeding $10 billion as of recent reports. His fortune is not solely tied to Facebook; he has invested in various tech startups and businesses, particularly in Asia.
What Happened After the Settlement?
Eduardo Saverin’s Life Post-Facebook
Following the settlement, Saverin moved to Singapore and renounced his U.S. citizenship in 2011. This decision was widely speculated to be a tax-saving strategy, as Singapore does not have capital gains tax. However, Saverin stated that his move was for business reasons, as he wanted to focus on investments in Asia.
Mark Zuckerberg’s Continued Success
Meanwhile, Mark Zuckerberg remained CEO of Facebook (Meta) and continued to expand the company. Under his leadership, Facebook acquired major platforms like Instagram, WhatsApp, and Oculus, solidifying its dominance in social media and technology.
Eduardo Saverin’s legal battle with Mark Zuckerberg ended with a lucrative settlement, securing him billions of dollars from his Facebook shares. While the exact amount he received remains undisclosed, estimates suggest he earned at least $4 billion to $5 billion from the company. Despite their legal disputes, both Saverin and Zuckerberg have achieved immense success, with Saverin now focusing on global investments while Zuckerberg continues to lead Meta.