MovieChat Forums > The Social Network (2010) Discussion > Eduardo wasn't really shortchanged.

Eduardo wasn't really shortchanged.

posted 8 years ago by cartesianthought
7 replies | jump to latest

What he got from the settlement, or even ownership of .03% of the company is millions of dollars. He enjoyed the glamor of being a bigshot, the women, parties, etc. He did pretty damn well even for Ivy League standards.

He invested money up front and was part of the company from the beginning, but outside of that, he didn't contribute much. His networking efforts were of limited results, and in the long run, it just doesn't make sense to pay someone 30% for the rest of the company's history when they only did meaningful work during the initial stages. I don't think he did 30% of the work, nor did he contribute billions of dollars of work.

It's like the Beatles. Pete Best was the original drummer, and then they sacked him for Ringo Starr because Ringo was better. Best made a good career for himself and he never went hungry but to say he deserved to be in the Beatles and make 25% of their profits is just silly.

[–] shelemm 8 years ago

That would certainly be Mark Zuckerberg's take. But it was never going to get to a jury. Because the people who are experts on this knew they would lose, not on the merits of the case, but becasue of Zuckerberg's demeanor.

[–] metzler-bgl 8 years ago

Your are absolutely wrong. If you invest in a start up, the chances to get nothing back are really big. So, if yomething goes through the roof, you have to get your whole share, even if it seems a little much in this specific situation. This his high variance investment and you are shooting at these rare moments where you multiply your investment by 100 or 1000.

Sopranos - Breaking Bad - The Wire

[–] chicago85 8 years ago

He was edged out very early on so no one is ever going to know how much he would have contributed later. One test would be to see how he had fared since then.

He graduated magna cum laude from Harvard in Economics and has since married and funded startups in Singapore where he moved. He continues to prosper and so far has not bothered to visit the US. He was originally from Brazil. He had already made $300,000 in oil investments as an undergraduate. Without this Facebook may have never gotten off the ground. He has .04% of outstanding shares in Facebook. I think they can afford that.

I don't know everything. Neither does anyone else

[–] jamotide 8 years ago

that part made no sense at all. How does issuing new shares only cause dilution for one particular shareholder? How did issuing 20m new shares dilute his 1.2m from 34% to 0.04%?
pretty sure this is not how it happened in reality.

[–] megsaha 8 years ago

In reality it was diluted down to below 10% ...... currently he owns 5% .

[–] TaRaNRoD (1579) 8 years ago

"Pete Best was the original drummer, and then they sacked him for Ringo Starr because Ringo was better"

I see your point here, but Ringo is a pretty bad drummer. He did his job for what he had to do, but he has always been the weak point of the Beatles.

The other three were (and are in Paul's case) musical tallents. John and George both were the best (Harrison is one of my favorite guitarist of all times).

[–] BillySlater (4285) 5 years ago

Eduardo´s creative contribution is not relevant. If you are a financial investor and make a deal with someone for X percent, you are entitled to that % if the startup becomes a huge financial success.