All about the Benjamins, or How Mark Zuckerberg cemented control of Facebook $100 at a time
But for Facebook co-founder Mark Zuckerberg, a C-Note was the key to cementing his control over the social networking phenomenon.
As we learned last week when Facebook filed its prospectus for a $5 billion initial public offering, Zuckerberg has the voting rights to shares owned by some of Facebookâs biggest stakeholders, including venture capital firm Accel Partners, Digital Sky Technologies and former Facebook President Sean Parker.
In an amended filing on Wednesday, Facebook provided a little more color about the agreements that contributed to Zuckâs controversial control of 57 percent of the companyâs voting shares.
Most intriguing was the price that Zuckerberg paid each of the various shareholders in exchange for handing him their voting rights: $100 in cash.
Thatâs not a typo.
One hundred bucks may seem like a pittance for such an important right. But itâs possible that the $100 payment was merely a formality, and that forfeiting voting rights to Zuckerberg was the real price of admission for (the raging horde of) investors seeking to buy into Facebook.
The fact that Zuckerberg appears to have obtained such agreements from some of Facebookâs earliest investors suggests that even as a young college-age entrepreneur, he had a sense of how big his dorm-room project could one day become, and was astute enough to not letÂ opportunity slipÂ through his fingers.
Speaking of Facebookâs early days, anyone who saw the David Fincher film The Social Network knows the name Eduardo Saverin, the fellow student who helped start the company, but wasÂ pushed out and embroiled in a bitter dispute with Zuckerberg.
It turns outÂ Saverin was one of the people who sold shares to Russiaâs Digital Sky Technologies. The amended prospectus, filed Thursday, refers to a âSaverin Agreementâ in connection with DSTâs stake, though it does not provide many details.