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Tag: Eduardo Saverin

  • This Was Facebook’s Ad Pitch Eight Years Ago

    Remember the Facebook of old? There were no Timelines, no FarmVille requests, not even a news feed. It was powered by wall posts after hazy nights of college binge drinking and coy inside jokes about random hookups with complete strangers. Six or seven years ago, Facebook really was the college experience online.

    But just a little bit before that – before Facebook became the nationwide dorm room phenomenon, it was a little more selective. In the first half of 2004, Facebook was only available for a couple dozen colleges, a third of which were Ivy League. And in that period between launch and full expansion, former Facebook CFO Eduardo Saverin went to New York City to sell ads.

    DigiDay got their hands on an original media kit used by Saverin back in 2004 to sell ad space on what was then known as thefacebook.com. The package boasts of Facebook’s growing numbers (70,000 users!) and their potential for quick expansion. It also markets Facebook as the “new college addiction,” quoting the March 5th issue of the Stanford Daily:

    Classes are being skipped. Work is being ignored. Students are spending hours in front of the computer in utter fascination.

    “There are 15 million college student in the United States,” says one page of the kit. “With an estimated purchasing power that exceeds $85 billion, college students have money in their pockets for your services and products. This year they will spend $21 billion on restaurants and food, $9 billion on automobiles, $5 billion on clothes, $4 billion on phones and $46 billion on other amenities.”

    facebook ad kit 2004

    Although Facebook is mostly trying to sell banner ads here, you can already see that they are pushing the giant trove of personal information they have at their disposal. They highlight targeted advertising, which they say can nail down a user based on major, fraternity or sorority, age, gender, sexual orientation, relationship status, political views, and more.

    Although the ad offerings have diversified, a lot of what’s in this packet would be applicable to Facebook’s pitch today. Just up the 70,000 user mark to 950,000,000 and it’s basically the same argument: Look at all of these people that you can taget based on a massive amount of personal data. This is just a fascinating look into the early days of one of the biggest online properties in the world.

  • Eduardo Saverin Talks Facebook With Veja

    We’ve been covering Facebook co-founder Eduardo Saverin, and his plan to renounce his United States citizenship all throughout May. First, he was accused of trying to skirt taxes by renouncing his citizenship, but his representatives tried to explain that wasn’t the case.

    Next, Senator Charles Schumer of New York claimed Saverin was running a scheme and took legal action to impose a hefty capital gains tax on investors who renounce their citizenship.

    Now, Eduardo is being featured in Brazil’s number one weekly publication Veja. In the article, Saverin addresses the issue of his taxes, U.S. citizenship, his investments, and even his relationship with Facebook co-founder Mark Zuckerberg. Veja is the World’s 3rd largest weekly publication.

    Eduardo’s father Roberto comments on giving up U.S. citizenship:

    “It was hard for me, because of the life I built in the U.S., hearing from Eduardo that he had to give up on his citizenship. But he did this not because he wanted to, but because he had no other choice as a foreigner living in Singapore, where financial transactions are more restricted and bureaucratic for those who hold a U.S. passport. There was no other way. Besides, after Facebook’s IPO, there would be much pressure on him if he stayed in America.”

    Eduardo addresses his relationship with Mark Zuckerberg:

    “I have only good things to say about Mark, there are no hard feelings between us. His focus on the company since its very first day is anything short of admirable. He was a visionary, he always knew that the only way for Facebook to grow was to maintain its central idea, that of people truly presenting themselves as they are, without nicknames or pseudonyms. That’s Facebook’s biggest strength, what allowed us to transform it into an instrument of protest, like what happened in Egypt, but also in an instrument of business, not to mention a way of naturally connecting with friends.”

    Saverin speaks about the state of his current investments:

    “I am investing like a crazy person, mostly in internet start-ups. And I want to invest in Brazil as well, because I am Brazilian and that’s in my heart. I’ve recently been cc’d on e-mails sent to Eike Batista [Brazil’s richest man]. But that’s not how I want to invest in Brazil, through minerals, unless it’s silicon or something tech-related. And I believe there’s a new Facebook out there to be found. Where? My guess is in healthcare.”

    Saverin came to the United States in 1992 from Brazil, where he was born, and gained citizenship in 1998 while attending Harvard with Mark Zuckerberg.
    Eventually, Eduardo issued a formal statement regarding his decision to abandon his U.S. citizenship.

    Eduardo Saverin comments:

    “My decision to expatriate was based solely on my interest in working and living in Singapore, where I have been since 2009. I am obligated to and will pay hundreds of millions of dollars in taxes to the United States government. I have paid and will continue to pay any taxes due on everything I earned while a U.S. citizen.”

    “…I invested my life’s savings into a start-up company that initially was run out of a college dorm room. Since then the company has expanded dramatically, has created thousands of jobs in the United States…”

    “I will continue to invest in U.S. businesses and start-ups, and believe and hope that those investments will create many new jobs in the U.S. and globally.”

    Eduardo has been living and working in Singapore side 2009. He stays connected to the United States and the rest of the world through his iPad, iPhone, and other devices. He told Veju that it was always a dream of his to live in the U.S. and that corruption and threats of kidnapping forced him and his family out of Brazil, and that is when they moved to Miami in the early 1990’s. Saverin’s investments are currently worth about $2 billion.

  • Eduardo Saverin Congratulates Facebook, Zuckerberg for IPO

    Eduardo Saverin Congratulates Facebook, Zuckerberg for IPO

    Who says money can’t buy everything? Well, maybe it can’t, but it sure can buy various levels of forgiveness, provided it was even required. Of course, when you stand to make $3 billion or more, there’s undoubtedly a tendency to look back on the past with more romanticized perspective, while allowing potential grudges to be dissolved.

    Or it could be that Eduardo Saverin is genuinely happy for his old partner, Mark Zuckerberg and the rest of the Facebook crew. Whatever his motivation, the incredible payday he’s about to receive or some genuine affection for his old partner, Saverin took to his Facebook page to congratulate the crew on their successful IPO:

    On the eve of the Facebook public float, 8 plus year in the making, I as co-founder wanted to look back and cherish Facebook’s early beginning. Congrats to everyone involved in the project from day one till today, and I especially wanted to congratulate Mark Zukerberg on keeping tremendous stead-fast focus, however hard that was, on making the world a more open and connected place.

    It’s largely true that we in the general public learned just about everything we know concerning the relationship between Saverin and Zuckerberg via The Social Network (the book and the movie), recently, Saverin indicated some creative license was taken with the story:

    The two’s relationship was the subject of the 2010 film “The Social Network,”in which Zuckerberg is portrayed as getting so caught up in making Facebook successful that he betrays Saverin and essentially runs him out of the company.

    But this week, Saverin said the movie was “more art than documentary.”

    Forgive my cynicism, but could the fact that Saverin stands to make more money than God billions from Facebook’s public offering be the reason for his all-of-a-sudden denouncement of the story, combined with the well-wishes he sent to the company he initially financed? Whatever the case, thanks to his citizenship denouncement, Saverin will, in all likelihood, get his billions without the burden of paying taxes attached to them.

    With that in mind, the next video is absolutely fitting:

  • Facebook Co-Founder Responds to Allegations of a Scam

    As you may recall Facebook co-founder Eduardo Saverin has been getting a lot of grief over his decision to renounce his United States citizenship and live in Singapore. Most of the concern revolved around him escaping high income taxes that would be owed on his 4% share of Facebook, which is set to go public tomorrow.

    Earlier today senator Charles Schumer introduced a new act called the “Expatriation Prevention by Abolishing Tax-Related Incentives for Offshore Tenancy” act that would make it necessary for all individuals who renounce their citizenship to pay a 30% capital gains tax on their investments and give up their ability to ever reenter the United States. Furthermore, Schumer attacked Saverin’s plans to renounce his citizenship, calling it “a scam” and an “outrage”.

    Now Saverin is responding to the allegations and has issued a response to those who say he’s leaving the country to avoid taxation and that he is running some sort of scam. CNN has posted his full statement of affairs.

    Here are a few key segments from his statement:

    “My decision to expatriate was based solely on my interest in working and living in Singapore, where I have been since 2009. I am obligated to and will pay hundreds of millions of dollars in taxes to the United States government. I have paid and will continue to pay any taxes due on everything I earned while a U.S. citizen.”

    “…I invested my life’s savings into a start-up company that initially was run out of a college dorm room. Since then the company has expanded dramatically, has created thousands of jobs in the United States…”

    “I will continue to invest in U.S. businesses and start-ups, and believe and hope that those investments will create many new jobs in the U.S. and globally.”

    To read Eduardo’s full statement follow the links above to CNN’s coverage of this event. We will be following the story of Saverin’s renouncement and what happens to his investments. Check back here for more news as the story unfolds.

  • Senator Responds to Saverin’s Tax Scheme

    Senator Responds to Saverin’s Tax Scheme

    We’ve been following Facebook co-founder Eduardo Saverin and his exit from the United States involving him renouncing his US citizenship. According to representatives speaking on Saverin’s behalf, his decision to leave the US has nothing to do with avoiding taxes, but rather to do with freedom to live and invest where he sees fit.

    Apparently we were not the only ones following Saverin’s story, Senator Charles Schumer is calling Saverin’s plan to renounce his citizenship a “scam” and he’s taking action to make sure this isn’t a strategy others can pursue in the future. Essentially the legislation he’s crafting would impose a 30% capital gains tax on any citizen who decides to renounce and keep their US investments.

    The current exit tax is similar in the way that it assumes a fee based on actually selling the investments. I believe 30% would be a considerable increase, but not completely different than what Eduardo is required to pay now. One clear difference is that Saverin could indefinitely delay paying the exit tax as it is, until he actually does sell the stock, as the current exit tax allows.

    Introduced at a news conference this mourning, the “Expatriation Prevention by Abolishing Tax-Related Incentives for Offshore Tenancy” Act would discourage investors from renouncing citizenship in order to evade high US taxes. A main component of the act prohibits those who renounce from ever entering the United States again.

    So it looks like things are heating up for Eduardo as lawmakers begin to take notice of his exit from the United States. Currently living in Singapore, Saverin amassed his education and his wealth in the US after attending Harvard. He was born in Brazil and has had US citizenship since 1998. He is estimated to own approximately 4% of Facebook, which will be worth a hefty fortune after tomorrows much anticipated public offering.

  • Saverin May Never See the United States Again

    You might remember we’ve been reporting on Facebook co-founder Eduardo Saverin’s exit from the United States. He has renounced his United States citizenship and moved to live in Singapore. According to a representative of Saverin’s, the decision has nothing to do with escaping sizable IRS bills attributed to his 4% share in Facebook.

    When Saverin’s request goes through to officially resign US citizenship he will owe an exit tax on all his investments equivalent to a capital gains tax if he were to sell. He would owe no US taxes on the investments in the future, and Singapore no such tax. Many have criticized Eduardo’s decision as a ploy to simply evade high IRS taxation on his sizable investments.

    Today we learn that there might be a higher price to pay for renouncing US citizenship than just an exit tax. TPM reported yesterday that US immigration law frowns on citizens who renounce their citizenship for monetary gain and may make it difficult for Eduardo to obtain a visa to enter the United States again. Saverin could fall in this category according to immigration code Sec.212 [8 U.S.C.1182]:

    Former citizens who renounced citizenship to avoid taxation.-Any alien who is a former citizen of the United States who officially renounces United States citizenship and who is determined by the Attorney General to have renounced United States citizenship for the purpose of avoiding taxation by the United States is excludable

    Remember though, Saverin’s representatives are defending the fact that he has not renounced his citizenship because of taxes, but rather to enjoy living in Singapore and focusing on investments abroad. So it could be argued, if it were to come up, that he gave up citizenship for personal reasons, not to avoid taxation. Eduardo has only been a citizen of the United States since 1998. He was born in Brazil and came to America in 1995.

  • Facebook Co-Founder Severin Could Save $67 Million

    You might recall last Friday when we reported on Facebook co-founder Eduardo Saverin. Eduardo attended Harvard with Mark Zuckerberg and helped Facebook arrange for much of the financing that got it to where it is today. Before the social network site really took off, Eduardo was forced out of the loop, but some years later he filed a lawsuit against Zuckerberg and others involved in the creation of the site and won a sizable settlement along with a 4% share of the company.

    The Brazilian-born Saverin has been a resident of the United States since 1998, but more recently moved to live in Singapore. As of late september he appears on a list of US residents who have renounced their citizenship. This decision stands to save Severin millions in taxes to the IRS.

    Tom Goodman, a spokesman for Saverin, commented on Saverin’s decision:

    “Eduardo recently found it more practical to become a resident of Singapore since he plans to live there for an indefinite period of time,”

    According to Bloomberg, Saverin would owe taxes on a sum total of about $2.44 billion, which, according to a tax professional’s calculations, would run him about $67 million in US tax. By choosing to leave the country and denounce his citizenship, Saverin would owe an exit tax of about $365 million. He could indefinitely delay paying this tax until the shares are actually sold, as the figure is derived from an estimated capital gains tax based on him actually selling the shares.

    Tom Goodman commented to Bloomberg about these tax calculations and Saverin decision to leave the United States:

    “The calculations and assumptions are not only erroneous, they also further perpetuate the false impression that tax was the reason behind Eduardo’s decision,”

    “His motive had nothing to do with tax and everything to do with his desire to live and work in Singapore.”

    There has been no word from Saverin on what he is currently working on or if he plans to ever return to the United States. Either way, his 4% stake is bound to increase in value once Facebook goes public. After the exit tax is paid, Eduardo won’t owe any future capital gains tax on appreciation in the United States and Singapore doesn’t have a similar tax.

  • Facebook Co-Founder Makes Excuses for Renouncing US Citizenship

    As we reported on friday, Facebook co-founder Eduardo Saverin has renounced his United States citizenship which he has held since 1998. Saverin moved to the US from Brazil in 1992 and met the now the famous social network creator, Mark Zuckerberg during his days at Harvard. According to the 2012 film, the Social Network, Eduardo contributed a great deal to key financial workings at Facebook that made it possible for the site to become a success.

    After he sued Zuckerberg and Facebook he inherited a substantial financial settlement and an over 4% share of the company. At the doorsteps of the much anticipated Facebook IPO, Saverin and the rest of the shareholder at the California-based company stand to make a lot of money, but will also be confronted with a huge tax obligation when it comes time to square-up with the government.

    Fortunately for Saverin, he has been proactive in planning for this day and took steps to renounce his US citizenship back in April. He plans to become a citizen of Singapore where it is said he will have more freedom over where he invests his capital. A spokesman for Saverin was quoted as saying, “Eduardo recently found it more practical to become a resident of Singapore since he plans to live there for an indefinite period of time”.

    With his renounced citizenship Eduardo will sidestep a huge tax bill, but will still pay a sizable exit tax on his shares of Facebook. Now Saverin’s spokesperson is attempting to rationalize his departure beyond just the tax aspects. The claim is that it isn’t about taxes at all, but about freedom to invest as he pleases.

    Here’s what a spokesperson for Saverin told the Wall Street Journal:

    “U.S. citizens are severely restricted as to what they can invest in and where they can maintain accounts,”

    “Many foreign funds and banks won’t accept Americans. This was a financial rather than a tax motive.”

    “His decision had nothing to do with dissatisfaction here, but with his strong desire to do business there,”

    So that is the latest from Eduardo Saverin and his big Facebook money. He’s leaving the country so that he may concentrate on foreign investments and not attempting to minimize his IRS obligation at all. We’ll keep you posted if anything more comes of this situation. Apparently it is becoming more popular for major US investors to renounce their citizenship in order to take advantage of investment opportunities elsewhere.

  • Facebook Co-Founder Resigns Citizenship to Escape High U.S. Taxes

    If you haven’t been living under a rock you know Facebook is about to go public and that current estimates value the company in the $90 billion+ range. Essentially, everyone with stock in the company is about to have a big payday.

    At some point going public became an inevitability and for those who saw it coming, they have been doing everything they can to reduce the amount of money the the US government will take from them. Eduardo Saverin, a co-founder of Facebook, is one of those stakeholders, and he currently owns 4% of the company.

    You might remember Saverin was one of the members of the Facebook team who turned around and sued Zuckerberg after he was forced out of the loop at the company. Apparently he contributed a great deal to the financial workings that allowed the site to launch and ultimately become a success. Long story short, he won some undisclosed settlement, which he probably deserved.

    Back to the tax thing. The Brazilian-born Saverin became a US citizen in 1998 after living in the country for over five years. According to Bloomberg, He joined an internal Revenue Service list of people who chose to denounce their US citizenship as of Aril 30th.

    Tom Goodman, a spokesman for Saverin, told Bloomberg, “Eduardo recently found it more practical to become a resident of Singapore since he plans to live there for an indefinite period of time,”. With the much lower capital gains taxes in Singapore it makes sense from a financial point of view. However, it’s bound to raise eyebrows since Saverin gained his Harvard education and his immense wealth in the United States.

  • The Social Network Receives 8 Academy Award Nominations

    The Academy Awards nominations list has just been released, and everybody’s favorite Facebook movie is up for 8 awards. These include: Best Picture, Best Direction, Actor in a Leading Role, Adapted Screenplay, Cinematography, Film Editing, Sound Mixing, and Music (Original Score). 

    Having heard about two decades worth of Trent Reznor’s musical offerings, I think the word "original" is a bit of a stretch these days, but the score did work for the film, if you ask me. 

    Earlier this month, The Social Network won 4 Golden Globes for Best Director, Screenplay, Best Score, and Best Picture, Drama. It  had been nominated for 6. 

    Jesse Eisenberg, the actor who portrayed Facebook CEO Mark Zuckerberg in The Social Network, was nominated for the Best Actor, Drama award, but lost out to Colin Firth for his performance in the film, The King’s Speech. Andrew Garfield, who played Facebook co-founder Eduardo Saverin, was nominated for Best Supporting Actor, but lost to Christian Bale for his performance in The Fighter. 

    The Social Network

    The real life versions of some of the characters in the film have been making headlines over the past week. Sean Parker (portrayed by Justin Timberlake) has been talking to the press, calling the film "fiction" (not unlike Facebook’s official position). Mashable quotes him as saying:

    "The part of the movie that frustrated me is actually the scene at the end where the character played by Justin Timberlake — who happens to have my name — basically writes a check to Eduardo – who I’m also, I consider Eduardo a friend of mine, and I’m one of the few people at Facebook who still interacts with Eduardo – and throws it in his face and has security escort him out of the building. And I mean, that’s just rude. This guy in the movie is a morally reprehensible human being."

    Saverin  has also been in the news, having invested in startup Qwiki, which just launched in public Alpha this week. 

    The awards show takes place on Sunday, February 27. See all nominees here.

    Read my review of The Social Network here.