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The Origin
The story of Facebook became famous after The Social Network made its arrival to theaters two years ago. Based off Ben Mezrich’s book, The Accidental Billionaires, The Social Network tells the story of the origin of Facebook and the falling out between two friends, Mark Zuckerburg and Eduardo Saverin. Zuckerburg and Saverin were business partners – Mark was in charge of the technical side of Facebook and Saverin was the money man, financing the company and in charge of getting new leads. However, as with what happens with many companies, things change, new people are introduced and problems arise.
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The Dispute
In Saverin’s case, he is pushed out by Zuckerburg and Sean Parker, the digital media wunderkind who created Napster. Saverin, unbeknownst to him, signs a contract that basically seals his death. He has a variable stake in the company, which means as more investors come on board, shares of ownership can be taken from his stake. In the end, when Zuckerburg, Parker, and Peter Thiel’s shares remain relatively the same, Saverin’s stake goes to under one percent. He is forced out of the company and decides to sue.
The Resolution
Much of the movie takes place in the deposition room as the two undergo this partnership dispute. In the end, they do settle for an undisclosed amount, and their friendship is ruined. The movie and story is just a reminder that these things can happen in business, especially in young startups in Silicon Valley. Speaking with a civil litigation lawyer in California is the first step if you find that you’re involved in a partnership dispute that you can’t solve on your own. Things happen in business, and stubbornness and ego can get in the way of progress. Litigation may be the only way to bring on a solution that is best for everyone. In Facebook’s case, both Saverin and Zuckerburg appear to be doing okay.
Patrick Whalen is a part of an elite team of writers who have contributed to hundreds of blogs and news sites. Follow him @2patwhalen.
This article is contributed by Patrick Whalen and posted by Rizwan Ahmad Author and founder of www.cyberockk.com, He is a tech blogger from India and he loves to share his thoughts by writing articles on this site to the different topics related to technology world,