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6 People Mark Zuckerberg Burned On His Way To The Top

The Huffington Post  |  By Posted: Updated: 05/17/2012 12:18 am

Mark Zuckerberg

Sometimes you've just gotta play hardball.

Facebook CEO Mark Zuckerberg developed something of a reputation for cutting out business partners as his company rose to prominence.

For example, Business Insider recently published emails and instant message conversations detailing how Zuck elbowed out of co-founder Eduardo Savarin in 2005. In what appears to be a particularly damning email, a 20-year-old Zuckerberg's outlines his plan to dilute Savarin's shares down from more than 30 percent without modifying the stakes held by other shareholders.

Now 28 years old, Zuck sits at the head of a powerful company that he will take public on Friday. Based on Facebook's recent filings with the Securities and Exchange Commission, the IPO is expected to raise as much as $18 billion and could vault the company's valuation to more than $100 billion.

Since the social network's beginnings in a Harvard dorm room, the hoodie-wearing CEO has faced his fair share of obstacles, missteps and tough calls along the way. Flip through the slideshow below to read about six people Zuck muscled out in the process.

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  • The Winklevoss Twins

    The infamous Winklevoss twins have been giving Mark Zuckerberg grief ever since Facebook's launch back in 2004. The pair and a business partner (more on him later) commissioned Mark Zuckerberg to program a social networking site they had founded called ConnectU, but they later alleged in a lawsuit that Zuckerberg ripped off their idea and launched Thefacebook (later, Facebook) instead. After settling with the company for $65 million in cash and stock, the twins claimed that Facebook misled them about the value of the company's stock. They appealed the settlement <a href="http://www.huffingtonpost.com/2011/05/16/winklevoss-twins-appeal-denied-circuit-court_n_862758.html" target="_hplink">all the way up to the Ninth U.S. Circuit Court</a> -- just one appeal shy of the Supreme Court -- before <a href="http://www.huffingtonpost.com/2011/06/22/winklevoss-twins-facebook-lawsuit_n_882618.html" target="_hplink">throwing in the towel in June 2011</a>.

  • Divya Narendra

    Divya Narendra partnered with the Winklevoss twins on their ConnectU project during their time at Harvard. Narendra fought Zuckerberg in court alongside the twins and <a href="http://techcrunch.com/2010/05/21/connectu-co-founder-launches-professional-investment-community-sumzero/" target="_hplink">founded his own investor community, called SumZero,</a> before claiming his share of the $65 million settlement with the social network. A plotline in the film "The Social Network," which dramatized Facebook's founding, portrayed the Harvard students' working relationship and subsequent fallout with Zuckerberg.

  • Eduardo Saverin

    Here's another name you probably recognize from "The Social Network." The film portrayed Zuck's deteriorating friendship with Facebook co-founder and fellow Harvard student Eduardo Saverin, culminating in a blatant betrayal on the part of Zuckerberg that ended his working relationship with Saverin. <a href="a href="http://www.businessinsider.com/how-mark-zuckerberg-booted-his-co-founder-out-of-the-company-2012-5?page=1" target="_hplink"" target="_hplink">A new piece by Business Insider indicates</a> that Saverin may not have been as much of a victim. As noted by BI, Zuckerberg planned to cut Saverin out of the company because he had failed to secure funding or set up a business model and had used the social network to run free ads for Joboozle, a side-project Saverin had developed. (<a href="http://www.businessinsider.com/how-mark-zuckerberg-booted-his-co-founder-out-of-the-company-2012-5?page=1" target="_hplink">Business Insider also published emails and instant messages</a>, purportedly written by Zuckerberg, that shed light on the methods Zuck used to oust Saverin and dilute his shares in the company.) After a 2009 settlement with Facebook, Saverin retains an <a href="http://www.forbes.com/profile/eduardo-saverin/" target="_hplink">estimated five percent stake in the company</a>. (His original stake was higher than 30 percent.) He recently <a href="http://www.huffingtonpost.com/2012/05/11/eduardo-saverin-us-citizenship_n_1510099.html" target="_hplink">renounced his U.S. citizenship</a>, presumably to avoid the capital gains taxes on the profit he stands to make off Facebook's imminent IPO.

  • Sean Parker

    Napster creator Sean Parker, who also served as Facebook's first president, played a huge role in the development of the social network. <a href="http://nymag.com/news/features/mark-zuckerberg-2012-5/index3.html" target="_hplink">According to Henry Blodget's recent profile of Mark Zuckerberg</a>, Parker was also instrumental in securing Zuck's power over the company. However, <a href="http://nymag.com/news/features/mark-zuckerberg-2012-5/index3.html" target="_hplink">as Blodget explains</a>, despite Parker's contributions, Zuck and the company cut him loose a year after his arrival due to his "<a href="http://nymag.com/news/features/mark-zuckerberg-2012-5/index3.html" target="_hplink">party-boy ways</a>."

  • Owen Van Natta

    Zuckerberg also had a hand in the departure of Owen Van Natta, Facebook's former chief operating officer and the <a href="http://allthingsd.com/20080219/owen-van-natta-to-leave-facebook/" target="_hplink">mind behind big deals</a> like Microsoft's $240 million investment in the social network. "His greatest strength was deal-making, not management," <a href="http://nymag.com/news/features/mark-zuckerberg-2012-5/index3.html " target="_hplink">writes Henry Blodget</a>. "In early 2008, in the wake of the disastrous launch of an advertising product called Beacon, Facebook's senior team determined that the company needed a different kind of executive running the business." <a href="http://allthingsd.com/20080219/owen-van-natta-to-leave-facebook/" target="_hplink">AllThingsD's Kara Swisher notes that</a> Van Natta had long been gunning for a CEO spot, which he was unlikely to find a Facebook. "He has said to me many times that he had been hesitant to come to Facebook then, as he had been looking for a CEO job at the time," wrote Swisher when Van Natta left Facebook.

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Sometimes you've just gotta play hardball. Facebook CEO Mark Zuckerberg developed something of a reputation for cutting out business partners as his company rose to prominence. For example, Bus...
Sometimes you've just gotta play hardball. Facebook CEO Mark Zuckerberg developed something of a reputation for cutting out business partners as his company rose to prominence. For example, Bus...
 
 
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HUFFPOST SUPER USER
lightoftruth2
02:51 PM on 10/03/2012
Sean Fanning founded Napster, NOT Sean Parker. Talk about "burning" someone's credit...
10:09 PM on 07/01/2012
No one even knows about Zuckerbergs former roommate Brad Stephenson who hacked Nike for $80,000 and then someone turned him in...wonder who did that!
HUFFPOST SUPER USER
frank1946
Tell the Truth
12:59 AM on 05/21/2012
He was abused as a Harvard Student..............cannot think of anyone else but Mark ?
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HUFFPOST SUPER USER
Lonnie DeVorak
03:50 PM on 05/20/2012
Yea, six people? Wonder how many Jobs and Gates stepped on.
08:40 AM on 05/20/2012
Face (book) it, MZ is not an honorable man. I know, it's not fashionable to still believe that a man's character is important, but I do. In the end, it's the only thing that matters. We all know that as FB has begun its decline in popularity and as it begins monetizing it's content, which you provide, it will become even more intrusive, thus accelerating its decline. In the words of my teenage daughter, FB is now pass?That's all of the investment analysis I need.
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HUFFPOST SUPER USER
WWZander
Where were you the day the Music died?
06:13 PM on 05/19/2012
Things like this happen all the time! Another story comes to mind real quick, U-Haul! When the founder/onwer died, his son stepped in and took the company over, he muscled out his other 14 brothers and sisters! You should be able to find the complete story on History channel!
02:49 AM on 05/19/2012
If it means hurting someone and losing a friend to get to the top then I'll pass !
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Fido0311
Pro 2A white Conservative
06:02 PM on 05/20/2012
We say that, but how many of us have that much money flashed in front of us.
06:17 PM on 05/20/2012
Not worth it !
02:47 AM on 05/19/2012
When you mistreat someone to get ahead, you will usually get it back in some way ! Zuck didn't have to step on anybody's toes to get to the top ! He was talented and smart enough to get there without the backstabbing ! Considering Saverin was supposedly his only friend while attending harvard, one would think Zuck wouldn't have double-crossed his only friend !

Oh well !
10:23 AM on 05/18/2012
Thacks Mark FB is the best thing sence the cellphone :)
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HUFFPOST SUPER USER
Lonnie DeVorak
03:51 PM on 05/20/2012
I agree Luis.....:D
02:16 AM on 05/18/2012
only 6 people??? The reporter should've dug a little deeper..
02:47 AM on 05/19/2012
Maybe there's too many people to mention !
01:11 AM on 05/18/2012
What IP? Facebook is by far not the first social media site. Even the word Facebook is not new. At the very least it was used for a photo "face book" by Stanford for its new Freshmen. Actually, some Stanford students even tried to make an online version of that book, but the administration shut them down. This was way before Myspace/facebook/whatever.
09:06 PM on 05/17/2012
I INVENTED FACEBOOK!!!
09:02 PM on 05/17/2012
I love how all the people Zuckerberg allegedly "burned" are still millionaires and/or Harvard grads, i.e., future millionaires. They are SO burned...

Not.
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HUFFPOST SUPER USER
carnegie
I am.
07:14 PM on 05/17/2012
Wow this new school journalism has really sunk to lower standards. This "piece" is what? A paragraph of non information and then six pictures you have to click on. And on HP you can't know until you click whether you'll find an honest article or junk like this.

I want my magazines back.
HUFFPOST SUPER USER
highdemocratist
06:17 PM on 05/17/2012
Well actually 7 people including myself the real inventor of his I.P.