In 2004, Mark Zuckerberg wrote in a private email:
"I'm just going to cut him out and then settle with him."
Eduardo Saverin invested $18,000 to help start Facebook.
In return, Zuckerberg destroyed him.
Here's the story behind the most ruthless betrayal in tech history: 🧵
Harvard University, 2003.
Mark Zuckerberg was a computer science student obsessed with coding.
Eduardo Saverin was a Brazilian economics major who'd already made $300k trading.
They met through their Jewish fraternity and became roommates.
Best friends, or so it seemed…
After Zuckerberg's "Facemash" stunt nearly got him expelled, he had a bigger idea:
A social network for Harvard students.
But he had ZERO money.
Enter Eduardo: "I'll give you the $1,000 you need to get started."
Then another $18,000 to buy servers and keep it running.
February 4, 2004: TheFacebook launches.
The partnership was simple:
- Mark: 65% (the tech genius)
- Eduardo: 30% (the money and business side)
- Dustin Moskovitz: 5%
Eduardo handled finances, and selling ads while Mark coded.
They were going to be billionaires together…
By summer 2004, Facebook was exploding.
Mark moved to Silicon Valley with Dustin to scale the company.
Eduardo stayed in New York for a summer finance internship.
Big mistake.
Out of sight, out of mind - and about to be out of the company entirely.
Enter Sean Parker.
The Napster co-founder who'd later inspire Justin Timberlake's iconic role in "The Social Network."
Parker whispered poison in Mark's ear: "Eduardo's not committed. He's holding you back. You need REAL investors."
The manipulation had begun.
August 2004: Parker arranged a meeting with Peter Thiel.
The PayPal co-founder offered $500,000 for Facebook.
But there was a catch: the deal required restructuring the company.
Eduardo, still in New York, was hesitant to sign the paperwork.
Mark saw an opportunity.
October 2004: The setup.
Mark convinced Eduardo to give up his voting rights "temporarily" for the restructuring.
Eduardo signed, trusting his best friend.
He had no idea he'd just signed his own execution warrant…
January 7, 2005: The execution
While Eduardo was away, Mark issued 9+ million new shares.
The recipients?
- Mark Zuckerberg: 3.3 million shares
- Dustin Moskovitz: 2 million shares
- Sean Parker: 2 million shares
- Eduardo Saverin: 0 shares
His 30% stake was gone.
When Eduardo discovered the betrayal, his reaction was pure shock:
"No. I refused to sign away my ownership of Facebook."
But it was too late. The legal documents had already been filed.
Mark's private email later revealed his true feelings: "I'm just going to cut him out."
The psychological warfare intensified.
Eduardo's name was removed from the Facebook website as "co-founder."
When he tried to attend the company's "one million users" party, security literally escorted him out of the building.
His best friend had become his worst enemy.
Mark's justification was ice-cold:
"Eduardo is refusing to cooperate at all... He has to sign stuff for investments and he's lagging and I can't take the lag."
Translation: Eduardo was 3,000 miles away, so Mark decided to steal his company.
And Peter Thiel later piled on:
"Eduardo was not remotely doing his job. His job was to sell advertisements for Facebook and he was not doing that job... he ended up making a lot of money because he was partially involved."
The gang mentality was complete.
April 2005: Eduardo fought back.
He filed a lawsuit alleging breach of contract, fraud, and wrongful dilution of his shares.
The legal battle was brutal, but Eduardo had one advantage: the truth.
Mark had documented his own betrayal in emails.
2009: The settlement.
After 4 years of legal warfare, they settled out of court.
Terms were kept secret, but Eduardo:
- Got his "co-founder" title back
- Retained approximately 5% of Facebook
- Signed a non-disclosure agreement
Justice... sort of.
Eduardo's "small" 5% stake in Facebook?
When the company went public in 2012, it was worth $2 billion.
Today, with Facebook (Meta) worth $1.5 trillion, Eduardo's stake is worth $30+ billion.
Mark tried to destroy him but accidentally made him one of the richest people alive.
But consider what Eduardo REALLY lost:
If he'd kept his original 30% stake, he'd be worth $450+ billion today.
That would make him the richest person in human history - richer than Elon Musk and Jeff Bezos.
One betrayal cost him the ultimate fortune.
Eduardo's response? Pure class.
He moved to Singapore, became a successful venture capitalist, married, had kids, and never publicly trashed Mark.
Meanwhile, Mark faces congressional hearings and global criticism almost weekly.
Who really won?
The current scoreboard:
Mark Zuckerberg: $200+ billion net worth, controls Meta empire, constantly under attack
Eduardo Saverin: $38+ billion net worth, lives peacefully in Singapore, respected investor
Sometimes the person who "loses" actually wins.
They key lessons:
- Never give up voting rights to anyone
- Success changes people - the Mark who needed $1,000 became the Mark who stole billions
- Documentation is everything - Mark's own emails proved Eduardo's case
- Sometimes losing a battle wins you the war
The final twist?
Eduardo Saverin renounced his US citizenship in 2011, avoiding an estimated $700 million in capital gains taxes.
The Brazilian kid who got screwed by his American best friend ended up screwing the US tax system right back.
Poetic justice.
Today, both are among the richest people on Earth.
But only one can sleep peacefully at night knowing he built his fortune honorably.
Mark Zuckerberg may have won Facebook, but Eduardo Saverin won something more valuable:
His integrity.
And $38 billion doesn't hurt either.
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Business owner who loves to talk about exciting and inspirational stories.
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