The Social Network Part 2: The Reel Twisty Story of thefacebook.com, Accidental Billionaires, and Butt-Hurt Frat Bros. Allegedly.

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On February 4th, 2004, Mark Zuckerberg, with the help of Eduardo Savrin, Dustin Muskowitz, Chris Hughes, and Andrew McCollum released the Facebook.com to their Harvard classmates.
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And with the real name and Harvard EDU email, students could build online profiles to connect and network with campus friends, classmates, and faculty, all from behind a computer screen.
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And it was a massive hit overnight.
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And that first week, the Facebook.com at Harvard had nearly 5,000 members.
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By early April, it had launched at 10 other universities, and their students were just as addicted as Harvard's.
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The Facebook.com showed no signs of slowing down.
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Expansion was the only way forward, and everyone had dollar signs in their eyes.
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Mark Zuckerberg was a hero whiz kid.
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Eduardo Savrin had made the smartest investment of his life, and now they had groupies.
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But fast forward to October 2010, and filmgoers were getting a totally different story.
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The social network, written by Aaron Sorkin, based loosely on the Accidental Billionaires by Ben Meserich and directed by David Fincher captured Facebook's meteoric rise just months after Mark had settled a lawsuit with Eduardo out of court.
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And at the time of the film's release, Identical Twins and 2008 Beijing Olympic Rowers Tyler and Cameron Winkelvoss were appealing the results of their own suit against Mark.
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So how did Mark become the recipient of two separate lawsuits?
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One from his alleged best friend and business partner?
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Well, I'm Tasha.
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And I am Matt.
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And you might want to settle in with a cuppa because this story is real twisty.
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Welcome to Real Twisty Setting Stories Straight.
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This is part DOS, part two of our look at 2010's The Social Network.
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And spoilers are ahead.
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And watch the movie.
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And if you want to read the book.
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And like always, all of our research stuff is in show notes or at our website.
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So things that Asha looks at because I don't.
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You can find all those resources.
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Now that does lead me to a point.
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So one of the things that I'm going to do on this one with Veronica, I put all of the resources in both episode show notes, but I've got a lot of resources for this one because it's there's just part two.
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It's just a lot for the whole the whole damn thing.
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And and there's a lot.
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So if you looked at the resources on the first episode for the Facebook, there was it was like a long list.
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Yes.
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Those resources are not going to be in the second list and the second episode for the Facebook because for the Facebook.
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For the social network, because I it's just a lot.
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And so the social network part two is going to have a completely different list.
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So if you want the full list of everything that I read and everything that I looked at as reference, then you're you need to compile compile the two lists.
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So that I think that's all of our business.
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That's good.
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That's it's good to not have redundancy.
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It is, it is good, it is good.
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And there is none here except that, like we did with Veronica, I'm going to try to quickly sum up the first half in a chunky summary, not as a stand-in for the real thing.
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Oh, the intro wasn't the summary?
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No, but to remind us of where we left off.
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Okay.
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Okay.
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So we started with a quick love fest for Sorkin.
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Love fest, yes.
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Yes.
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And mentioned his now infamous quote: I don't want my fidelity to be to the truth.
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I want it to be to storytelling.
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And then we spent an hour of the movie watching him prove it.
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Um, we debunked the existence of Erica Albright, reassigning the farm animals to Mark instead of poor Billy Olsen, who was taking a bad rap for it.
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And then we swapped out the dramatic Oceans 11 style hack for what it really was, just like a bored 19-year-old with some beer and a chip on his shoulder and some badly planned passwords.
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Um, we got Mark Zuckerberg's origin story, which was actually less villain and more TGIF.
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And right?
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I could see full house pulling that off.
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Yes.
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And we met the Exeter Facebook, which he definitely borrowed some inspiration from.
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And then we watched him disciplinary probation his way into meeting his now wife, Priscilla Chan.
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And days later, the Winkelvoss twins and Divya Narendra.
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I'm so sorry if I mispronounced your name, Divya, who made up the Harvard Connection team.
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He's totally gonna watch this.
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You know, he probably is not.
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But from there, it was a slow motion train wreck.
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Mark stringing along Harvard Connection while his own IMs said the quiet part out loud.
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Lots of I'm going to fuck them energy, while he raced his own product, the Facebook.com to launch on Harvard or in at Harvard on February 4th, 2004, then rocketed it through Columbia, Yale, Stanford, and beyond.
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Eduardo had signed on to be the money guy while Mark was already treating the Winklevi like a problem to be managed and less like partners to be dealt with.
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Like a virus or bacteria.
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Winklevi.
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Yes, yes.
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And Mark had a fondness, a little proclivity, if you will, for a little light hacking whenever someone got in his way, allegedly.
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Um, so there were fake Winklevoss profiles that we discussed, disabled accounts, even hacking into the Crimson Reporters' inboxes to see what they were writing about him.
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Uh we closed we closed out the show on Sean Parker's entrance, Justin Timberlake at his slimmiest, and a final detour into how the platform was built to be addictive from day one.
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Then we left everyone hanging.
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Does Amy exist?
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Is there a snake?
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Does Eduardo get the shaft?
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What happens to Divia and the twins?
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Dun dun dun.
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I don't know.
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A good point about the um the AOL chat stuff is everything on the internet.
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Days on the internet, but you future billionaires, uh, DMs or chat rooms or whatever.
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Our children, we found out, please take notes.
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Yes.
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Any children, but especially our children, please take note.
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But any adults either.
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Any adults that are just randomly just posting stuff up, just because you delete it off does not mean that it's fully off the internet.
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Unless you're Mark Zuckerberg.
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We're gonna talk about that later.
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But that's where we're picking up today, literally at the one hour mark of the film.
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If you're tracking with us, you had it exactly at one hour, just about.
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Yeah.
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I mean, it's off a couple seconds, but did I miss anything important?
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I don't think so.
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All right, well, then we're gonna dive into Sean Parker's origin story, since that's who we left off with, and that's where we're starting.
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Sean Parker was one of two Sean's that founded created Napster, Ben Eduardo.
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That's just how I'm gonna ref refer to the accidental billionaire.
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By the way, Sean's name is spelled like not a common Sean name, which is A N.
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Like your brother.
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My brother's name is it that was interesting.
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The other Sean is S-H-A-W-N, but whenever you look at them referred I've seen U N.
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Uh-huh.
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But when you look at them referred as the two Seans, they always like everywhere I saw the two Seans, they spelled it S-E-A-N.
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Yeah.
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Which I thought was really interesting because it was the other Sean's idea to begin with.
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It's crazy.
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Anyway, when we when I mention the accidental billionaire book story, I'm just calling it Ben Eduardo because that is the Ben Eduardo story.
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And that's easier for me to say than we'll see.
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All right.
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So Ben Eduardo, they really don't give too much love to Sean in their intro of him.
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This is what they tell us.
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They tell us that he grew up in Chantilly, Virginia.
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He's allergic to bees, shellfish, and peanuts, and he has asthma.
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So he always has an epipin and an inhaler on him.
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So I'm reading this and I was like, so they're they're telling me all the ways to take him down.
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Like this is his kryptonite.
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Yeah.
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And that's like basically all they tell me.
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He's a step away from a bubble boy.
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Yeah.
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That's what he is.
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Yeah.
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Stephen Levy is a bit kinder in his his book on the whole startup of Facebook.
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He tells us that when Sean enters Mark's story, Sean was 26.
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He was living with Stanford undergrads, but he had never gone to college after high school.
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In his younger years, he had competed on the school swim team, but he had to withdraw because his asthma was so bad that he just couldn't compete anymore.
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I later found out from another resource that his asthma was actually so severe as a kid that he was actually hospitalized quite a bit for it.
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So, you know, it is mentioned in Levy's book, but I think mentioned because he's trying to help his story along.
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Okay.
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He's creating a full character.
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Look, he likes to swim.
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Yeah.
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He has asthma.
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But also the asthma and the inhaler does come into the Sean Parker Facebook story later on.
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And it does drive some speculation.
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So he's introducing it earlier because we're gonna come, you know, it's gonna play into Sean's story at some point.
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Sean Parker's dad was a US government oceanographer who started teaching his son to program computers when he was seven years old.
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And because his asthma had left him quite ill as a kid, he spent a lot of time diving into books.
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In a Vanity Fair interview with him, Vanity Fair said that the result is a guy who like rarely encounters a topic, literary, medical, political, or technological, that he can't jump into and rattle on about into all hours of the night.
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But he will need to sleep it off the next day because he will literally be talking all night.
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Parker met Sean Fanning on internet relay chat, which was a hacker hangout.
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And Sean Fanning was a few years younger than him.
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Fanning had shared his idea, this idea that he had, which ended up being Napster.
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And Sean Parker was like super jazzed about it, really excited.
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And he asked if he could join Fanning in getting it launched.
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So Parker became co-founder.
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He wrote the business plan and he helped secure the angel funding to the project, which launched in June of 1999.
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So just right after we graduated.
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Wow.
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And he was only 19 years old.
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So he just graduated.
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That makes me sick a little bit.
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Yeah, no doubt.
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I was operating roller coasters.
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Well, I wasn't operating roller coasters.
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I was operating a train around roller coasters, and he was building Napster.
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I don't know.
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He moved.
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I was working at like a Rubio's, which is like with like a seafood fish, like uh taco place.
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Yes.
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In Colorado, it originated out of California.
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I loved it.
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I know.
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It is not as great as what it was back then.
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Because we've been to a few, and you're like, I don't know why you like this.
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It's it's great.
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Rubios could be clear that I work with it.
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We do think you're great.
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Nothing bad against Rubios.
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So Parker then moved to San Francisco from his hometown in Virginia, and tens of millions of people downloaded Napster in the first year.
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Wow.
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And Parker was enjoying the party life before the music industry debacle in 2001.
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So Parker's own emails kind of bit him in the ass on this one.
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He said in his emails that the users were probably breaking the law.
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And these emails were leading evidence in the lawsuits against Snapster.
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So in the end, after all the free music and devouring legal battles, Parker was pushed out by Fanning's older partners and he made zero dollars.
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He did, however, make a ton of Silicon Valley connections from the experience, who like thought he was a genius, and all before he was 22.
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So I mean that was that was pretty genius.
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It was.
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His girlfriend at the time, however, wanted him to give up on his Silicon Valley dreams and become a Starbucks barista.
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That's what she was pushing him to become.
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Instead, later in 2001, Parker started a new company called Plaxo, where you crowdsourced your contact list, kind of like Wine Rich's digital Rolodex that we talked about in episode one from 1997.
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So Plaxo auto-updated your address book when one of your contacts details changed, but they had to choose to sync their new info with their friends.
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It was a great way to easily stay connected with the people that you knew, but it also created a ton of spam email, which people hated.
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So there was definitely like a love-hate relationship with the users and Plaxo.
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Stephen Levy says that Parker was stripped of his executive title and then fired from his own company in early 2004 by the investors because they were alarmed, alarmed by Parker's quote, erratic behavior.
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Parker fought hard, but essentially left Plaxo with like no severance package.
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He blamed the venture the venture capital firm Sequoia Capital, and he held a major grudge against Michael Moritz from Sequoia that carried on into his days with Facebook.
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And we will see it come up in the film and in Facebook's restructuring laws later.
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So kind of put that in your back pocket.
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Okay.
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Don't forget Sequoia Capital, Michael Moritz.
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So in 2004, Levy says that Silicon Valley's, he calls him Silicon Valley's Dark Prince in Exile.
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That's what it's like.
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John Parker's called.
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Yeah, that's what Stephen Levy calls him.
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He was renting a bedroom in a house of students and was building debt instead of credit.
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And his bank account had been closed for a negative balance, but he refused to get a job because he knew that he was waiting for the next big thing.
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And it was right around the corner.
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And he believed that it was going to be network-based.
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So one of his roommate's girlfriends pulled up Stanford's Facebook.
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And he was struck by how similar it was to Friendster, but how it broke the mold of anonymity and built on real identities.
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And he looked at it and he just knew like this is it.
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So he sent a blind email to Facebook, said he'd been working with Friendster and suggested meeting to see if he could help the Facebook project out along at all.
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Eduardo was the one to answer the email.
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Oh, really?
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Yeah.
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Yeah.
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And agree to the meeting.
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So it wouldn't have happened if he wouldn't have answered it.
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Correct.
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Eduardo probably would have stayed.
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But then maybe Facebook wouldn't have been as big as what it is now.
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Mm-hmm.
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So Parker advised Friendster's founder, Jonathan Abrams, in 2003, but it wasn't like a traditional job at Friendster.
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For his guidance on growth hacking and product strategy, he received like a small block of stock options at Friendster.
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This role and his insight into Friendster's startup gave him a deep understanding of his technical and psychological dynamics of social networks, which he leaned on to prove he understood the future of social media when he met with the Facebook kids.
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This was a huge reason why Mark trusted him enough to put him in such a pivotal role when he came on board at Facebook.
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Kind of interestingly though, his work at Facebook ended up putting Frintster out of business.
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So I wonder, like did he cash out those stocks in time?
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Or, you know, not that not that he was hurting from his deal at Facebook.
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Like, you know, um, but so to untwist, just to recap, Amy was not a one-night stand.
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She was a roommate's girlfriend.
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And I don't know what her name was, but you know, yeah, I don't know.
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Yeah.
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But in fact, Sean had a girlfriend at the time.
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And at the end of the summer, he moved out of the rental house when his money ran out, and he started staying at his girlfriend's parents' house.
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Um, nice.
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That's a great boyfriend.
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Yes.
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So after we meet Sean in the movie, we go uh from the extremely uncomfortable meeting with the Winklevi uh that they have with the Harvard president, which we talked about in the first episode, straight into a deposition with Eduardo.
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And first, I want to let everyone know that there were no depositions in the suit with Eduardo.
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I can't remember if we talked on that in the first uh episode, but I if we did, I just reiterate the depositions did not exist.
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The case was settled entirely outside of court and through the lawyers.
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So all of these depositions.
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With just Eduardo, like the Winklevases, did they have depositions?
00:18:16.880 --> 00:18:18.880
The Winklevi, that was like a whole other thing.
00:18:19.200 --> 00:18:20.960
Just Eduardo's situation.
00:18:21.119 --> 00:18:34.720
But all of these deposition scenes with Eduardo were made up to carry Ben Eduardo's story and to put Andrew Garfield in another suit because the boy looks good in a suit.
00:18:34.799 --> 00:18:36.400
And then you know, and to make him sound a very good thing.
00:18:37.680 --> 00:18:38.319
Yes.
00:18:38.799 --> 00:18:48.799
So in this deposition scene, he says that they they went to New York to meet with potential investors in meetings that he had set up on his dime.
00:18:48.960 --> 00:18:53.039
He had paid, he says again, only his$1,000.
00:18:53.680 --> 00:18:58.319
The book claims that he paid for travel, food, and taxis.
00:18:58.480 --> 00:18:59.599
So let's untwist.
00:18:59.759 --> 00:19:08.559
First, I don't care what year it is, you aren't running a business and taking two men and a girlfriend to New York City on$1,000.
00:19:09.279 --> 00:19:18.559
I went to New York City in 2004 the same year, and I slept in a sleeping bag on the basement floor of a Brooklyn church.
00:19:18.799 --> 00:19:24.079
I did volunteer work, and I know that that trip cost me more than$1,000.
00:19:24.559 --> 00:19:26.079
We took no taxis.
00:19:26.319 --> 00:19:27.920
I had a subway pass.
00:19:28.000 --> 00:19:32.720
And when I was not on the subway, I hoofed it everywhere else that we went.
00:19:32.960 --> 00:19:37.200
And we were definitely not eating where Eduardo was eating on that trip.
00:19:37.279 --> 00:19:37.599
Okay.
00:19:37.839 --> 00:19:44.559
There was one place where they were like giving us sandwiches that they made for us because we volunteered there and they were like, thank you for your time.
00:19:44.720 --> 00:19:45.519
Have a sandwich.
00:19:45.599 --> 00:19:49.440
So, and I paid way more than$1,000 to go on that volunteer trip.
00:19:49.519 --> 00:19:50.880
So I call bullshit.
00:19:51.200 --> 00:19:59.680
Second, yeah, no, we already know from other sources that Mark also footed$1,000 towards the starting account.
00:19:59.839 --> 00:20:01.839
So liar, liar, pants on fire.
00:20:01.920 --> 00:20:02.160
Okay.
00:20:02.319 --> 00:20:08.000
Plus, this meeting with the investor that they go to first, when he's like, is that a tisk?
00:20:08.319 --> 00:20:15.039
This is Aaron Sorkin playing the annoyed investor and doing quite well, I believe.
00:20:15.200 --> 00:20:17.839
Like he does he does a great job.
00:20:18.000 --> 00:20:25.200
But I also want to call out a couple of ways that Sorkin writes about Mark because I think that it's just very telling.
00:20:25.359 --> 00:20:41.039
So his first intro in the script reads Mark Zuckerberg is a sweet-looking 19-year-old whose lack of any physically intimidating attributes masks a very complicated and dangerous anger.
00:20:41.279 --> 00:20:48.079
He has trouble making eye contact, and sometimes it's hard to tell if he's talking to you or to himself.
00:20:48.319 --> 00:20:51.920
So Sorkin makes him out to almost be insane.
00:20:52.000 --> 00:20:59.200
Like if it was the 70s and not the early 2000s, he could be the next Jeffrey Dahmer or the next Zodiac.
00:20:59.279 --> 00:21:02.960
Like, you know, like that's how you describe serial killers.
00:21:03.519 --> 00:21:07.279
I mean, I think stuff happened in his childhood that like no one knows publicly.
00:21:07.519 --> 00:21:09.599
I don't think anything happened in his childhood.
00:21:09.680 --> 00:21:12.240
He had a very well-rounded childhood.
00:21:12.640 --> 00:21:13.519
I think he did.
00:21:13.680 --> 00:21:14.319
I I don't know.
00:21:14.400 --> 00:21:19.759
I think some bullies or something like that hurt him just enough to twist his mind a little bit.
00:21:20.079 --> 00:21:23.599
Matthew, this is real twisty where we untwist the story.
00:21:23.839 --> 00:21:28.319
You are adding twists, unfounded twists to the story.
00:21:29.839 --> 00:21:33.920
That is, you're doing the reverse of what this is supposed to do.
00:21:34.160 --> 00:21:42.640
Eduardo, however, is introduced by Sorkin as a sweet-looking Brazilian sophomore wearing a three piece suit.
00:21:42.799 --> 00:21:49.759
In this meeting with Aaron Sorkin, it reads Eduardo in a three piece suit is pitching the executive.
00:21:50.079 --> 00:21:56.240
Mark in his hoodie and flip flops is completely detached and staring at the floor.
00:21:56.480 --> 00:21:59.680
Then they go to Sean and their descriptions, Eduardo.
00:22:00.160 --> 00:22:03.839
And a three-piece suit and Mark in his hoodie and flip-flops.
00:22:04.160 --> 00:22:07.119
But Sean's intro is fantastic.
00:22:07.279 --> 00:22:09.359
And I'm just gonna read it because it's so great.
00:22:09.519 --> 00:22:15.279
Sean Parker has stepped into the restaurant and is saying hello to the hostess while hugging a waitress.
00:22:15.440 --> 00:22:20.799
Sean stops at a table to shake hands with a guy in a suit and kiss his girlfriend.
00:22:20.880 --> 00:22:22.880
It's sort of an incongruous sight.
00:22:23.039 --> 00:22:27.440
This 22-year-old kid who's able to work a room like Sinatra.
00:22:27.599 --> 00:22:28.799
Who the hell is this?
00:22:29.039 --> 00:22:30.160
That's that's a good entrance.
00:22:30.720 --> 00:22:31.279
That's a good entrance.
00:22:31.359 --> 00:22:31.920
That's a good entrance.
00:22:32.240 --> 00:22:36.079
Eduardo says that the meeting with Sean was set up by his girlfriend.
00:22:36.160 --> 00:22:38.160
That like Christy set up this meeting.
00:22:38.400 --> 00:22:39.279
By Sean's girlfriend?
00:22:39.440 --> 00:22:40.799
No, by Eduardo's girlfriend.
00:22:40.880 --> 00:22:41.279
Oh, really?
00:22:41.440 --> 00:22:42.400
Lies, lies, lies.
00:22:42.480 --> 00:22:43.920
We know Eduardo set it up.
00:22:44.000 --> 00:22:49.039
And Stephen Levy says the Facebook girlfriends were present.
00:22:49.200 --> 00:22:56.799
So I think that Priscilla Chan may have been at this meeting as well, because Priscilla and Mark were already dating.
00:22:57.039 --> 00:22:59.440
But in the movie, we just get Christie.
00:22:59.599 --> 00:23:02.799
They all met in a trendy New York City restaurant.
00:23:02.880 --> 00:23:07.839
And Parker later said, I don't think I said five words to Ed to Eduardo.
00:23:07.920 --> 00:23:08.079
Yeah.
00:23:08.400 --> 00:23:12.559
Because he felt like Mark was the one who was really invested in the company.
00:23:12.720 --> 00:23:14.319
Well, Mark was the brains of it all.
00:23:14.480 --> 00:23:15.279
But it wasn't even that.
00:23:15.440 --> 00:23:19.359
He just said that like he felt like Eduardo was detached from it.
00:23:19.440 --> 00:23:21.759
Yeah, that Mark was the one who was invested.
00:23:21.920 --> 00:23:32.240
So by some accounts of people who have met him, Sean can be paranoid about people tell like tailing him or tapping into his electronics.
00:23:32.480 --> 00:23:45.759
So this scene where he starts talking about being like kicked out of plaxo and people were tapping into his phone and like tailing him, and that is allegedly true to character.
00:23:45.839 --> 00:23:49.200
But here in a minute, you're gonna find out why that may be true to character.
00:23:49.440 --> 00:23:55.359
Whether or not those conversations happened at the time, though, is all speculation and behalf of Mr.
00:23:55.599 --> 00:23:57.759
Meserich by way of Eduardo.
00:23:57.920 --> 00:24:09.920
Um, what we don't or what we do know for sure is that Sean Parker really did pick up the tab, um, but he used an overdrawn account to pay for the astronomical bill.
00:24:10.160 --> 00:24:10.559
Oh my god.
00:24:10.799 --> 00:24:14.400
Um he did not say drop the the at this dinner.
00:24:14.559 --> 00:24:21.759
They actually were using the Facebook because just Facebook.com was already a registered domain.
00:24:21.920 --> 00:24:25.119
So they had to use the Facebook, they didn't have a choice.
00:24:25.279 --> 00:24:26.079
Yeah, that's crazy.
00:24:26.240 --> 00:24:39.279
Um, they did register as an LLC under Florida law because that's where Eduardo was from and he was running the business side of things, and so that's all correct from this deposition conversation, and it was registered.
00:24:39.359 --> 00:24:45.599
They actually registered the LLC under Mark Eduardo and Dustin Muskovitz's name.
00:24:45.680 --> 00:24:59.440
So Dustin was already registered as a as a founder, and again, none of these deposition conversations are in any records because it's all on the down low, because there were no depositions.
00:24:59.599 --> 00:25:01.359
Because there, yeah, there were no depositions.
00:25:01.519 --> 00:25:03.759
Okay, so now we've got the chicken.
00:25:03.839 --> 00:25:04.880
Let's talk the chicken.
00:25:04.960 --> 00:25:05.359
Uh-huh.
00:25:05.759 --> 00:25:06.079
Okay.
00:25:06.240 --> 00:25:08.400
I this is a sensitive subject right now.
00:25:08.640 --> 00:25:18.400
The chicken article in the crimson, which will be linked in the show notes for all who want to read, was about the Phoenix in general, not Eduardo.
00:25:18.720 --> 00:25:19.279
Oh, really?
00:25:19.519 --> 00:25:20.079
Yes.
00:25:20.400 --> 00:25:24.240
It never mentions his name or the facebook.com.
00:25:24.400 --> 00:25:25.359
Do you want to know why?
00:25:25.599 --> 00:25:25.920
Go for it.
00:25:26.079 --> 00:25:29.440
Well, because I mean, I'm assuming it was because of like that's how they hazed him.
00:25:29.519 --> 00:25:31.839
And so in general, that's like a popular hazing.
00:25:31.920 --> 00:25:34.400
Is my It was a popular hazing, is my assumption.
00:25:34.640 --> 00:25:38.799
But also the article came out on December 8th, 2003.
00:25:39.119 --> 00:25:44.000
Facebook did not exist until February 4th, 2004.
00:25:44.319 --> 00:25:49.200
So no one was linking the chicken fiasco to something that didn't even exist.
00:25:49.599 --> 00:26:03.839
Besides all of that, they didn't even know if the complaint was legit or a prank because the email came in from an account called friend of the pork at Harvard.edu and was signed Jennifer.
00:26:03.920 --> 00:26:05.279
And they were like, Oh really?
00:26:05.519 --> 00:26:07.039
Does Jennifer even exist?
00:26:07.279 --> 00:26:11.519
And the pork was the other was the legal boss's thing.
00:26:11.759 --> 00:26:12.000
Yeah.
00:26:12.079 --> 00:26:15.440
And so they were like, Is the so is the chicken thing even real?
00:26:15.599 --> 00:26:21.839
The college, like Harvard did this whole investigation looking into it because it was like, we don't know if this is a prank.
00:26:21.920 --> 00:26:25.039
We don't like we just know this one house doing it to another house or clubs.
00:26:25.359 --> 00:26:25.519
Yeah.
00:26:25.839 --> 00:26:29.519
So authorities were investigating the email they'd received about the chicken.
00:26:29.680 --> 00:26:32.079
The whole thing is copied and linked in the show notes.
00:26:32.240 --> 00:26:42.880
Now, the online study guide that they mentioned in this scene that Mark is making online while they're, you know, Eduardo's freaking out about the chicken for this class that Mark didn't go to.
00:26:43.039 --> 00:26:43.759
He did do that.
00:26:43.839 --> 00:26:45.119
That is a real life thing.
00:26:45.200 --> 00:26:47.039
And he did pass that class.
00:26:47.680 --> 00:27:02.960
I also want to address the claims that have come up from Eduardo before the dinner started, and now back in the dorm about Sean Parker's drug allegations and problems with quote unquote girls before they've met him.
00:27:03.599 --> 00:27:07.599
There are no formal charges for any crimes involving drugs.
00:27:07.759 --> 00:27:18.640
There are also no investigative reports, police records, lawsuits, or public accusations against Parker regarding underage girls or prostitution from any time before he met Mark and Eduardo.
00:27:18.880 --> 00:27:23.279
Here's what I was able to find out about his pre-2004 Tom Foolery.
00:27:23.359 --> 00:27:23.519
Okay.
00:27:24.160 --> 00:27:28.319
He had an FBI arrest in 1996.
00:27:28.640 --> 00:27:33.359
You're talking 16-year-old Sean Parker was arrested by the FBI.
00:27:33.680 --> 00:27:41.680
He was like a sophomore, maybe uh-huh, for hacking into numerous major multinational corporations and military databases.
00:27:42.240 --> 00:27:43.279
They should have hired him.
00:27:43.519 --> 00:27:44.079
I know.
00:27:44.319 --> 00:27:51.599
He told Vanity Fair that at the time he spent his time, like his spare time hacking into different organizations.
00:27:51.759 --> 00:27:59.359
And then like he had a file where he kept track of all of the different ending domains that he had successfully hacked into.
00:27:59.680 --> 00:28:00.640
This trophy case.
00:28:00.799 --> 00:28:01.119
Right.
00:28:01.200 --> 00:28:06.400
And like all of the different countries in the world he had been able to like hack into.
00:28:06.640 --> 00:28:09.039
His dad caught him one night in the act.
00:28:09.200 --> 00:28:10.960
It was like four o'clock in the morning.
00:28:11.119 --> 00:28:11.359
Okay.
00:28:11.519 --> 00:28:13.839
And Sean had been skipping school.
00:28:14.000 --> 00:28:16.640
He had been like just not doing very good in school.
00:28:16.720 --> 00:28:16.880
Yeah.
00:28:17.119 --> 00:28:20.000
And so his dad was like coming down on him hard.
00:28:20.079 --> 00:28:22.240
So when he finds him there at 4 a.m.
00:28:22.559 --> 00:28:25.519
doing this, he's like, crap, the kid's gonna miss school.
00:28:25.599 --> 00:28:26.319
Like, you know.
00:28:26.559 --> 00:28:36.720
So his dad goes in and he takes his keyboard and like completely unplugs the keyboard before Sean can log out of the thing he's just tacked into.
00:28:36.880 --> 00:28:37.359
Oh, really?
00:28:37.519 --> 00:28:37.839
Wow.
00:28:38.000 --> 00:28:42.880
And Sean's freaking out and he's screaming, like, Dad, no, you don't know what you've done.
00:28:43.119 --> 00:28:44.400
He can't cover his tracks.
00:28:44.480 --> 00:28:45.359
He can't log out.
00:28:45.519 --> 00:28:49.519
He can't go in and like, you know, back up and erase what he's done.
00:28:49.680 --> 00:28:51.759
And that's that's how they caught up to him.
00:28:52.000 --> 00:28:53.200
That's how they caught up to him.
00:28:53.359 --> 00:29:00.160
It left his IP address exposed to federal agents and they tracked it straight back to his house.
00:29:00.480 --> 00:29:11.839
So he's setting in his high school world civilization class when he receives a note from the office telling him that his dad's there to take him to an orthodontist appointment.
00:29:12.400 --> 00:29:12.880
That's funny.
00:29:13.119 --> 00:29:16.960
He didn't have an appointment scheduled, nor did he have an orthodontist.
00:29:17.519 --> 00:29:27.359
So his dad was actually there to take him home, where a team of FBI agents were cleaning a computer and papers out of Sean's bedroom.
00:29:27.519 --> 00:29:33.839
Uh, but since he was a minor, he just got community service instead of jail time, which he did complete.
00:29:34.079 --> 00:29:42.240
He also um said in the Vanity Fair article that at this community service, he met the girl that did take his virginity.
00:29:42.400 --> 00:29:46.480
So, you know, he feels like he got the better, he feels like he got the better end of the deal.
00:29:46.559 --> 00:29:48.160
Like, yeah, he got community service.
00:29:48.240 --> 00:29:51.680
Yeah, he has an FBI record, but you know, it was a big moment for the first time.
00:29:52.480 --> 00:29:54.799
He like expounded that story beyond this.
00:29:55.279 --> 00:29:55.680
I don't know.
00:29:56.079 --> 00:29:56.720
Man, you know what?
00:29:56.799 --> 00:30:03.519
I just got away with doing so that's that's his first like big, you know, that's crazy record.
00:30:03.680 --> 00:30:13.119
So then in 2000 and 2001, he faced the recording industry lawsuits, which shut down Nabster and forced the two Sean's to file for bankruptcy.
00:30:13.359 --> 00:30:25.279
At Plaxo, as I mentioned earlier, there were rumors of quote erratic behavior, but also allegations for from the same board members that he gave drugs to employees.
00:30:25.599 --> 00:30:28.400
Parker heavily disputes these claims.
00:30:28.559 --> 00:30:33.759
And he has always said that it was a smear campaign to oust him from his own company.
00:30:34.000 --> 00:30:36.319
I really think I might believe him here.
00:30:36.480 --> 00:30:52.640
Um, I read an interview with another one of the Plaxo co-founders, which just to throw this out there as an aside, that means nothing, but they ended up selling Plaxo like a year after they ousted um and getting a ton of money.
00:30:52.720 --> 00:31:03.279
And the two Plaxo, the other two Plaxo kids went and founded a bean to chocolate company in San Francisco called Dandelion Chocolate.
00:31:03.359 --> 00:31:05.119
And now I I just want to go there.
00:31:05.359 --> 00:31:06.160
It still exists.
00:31:06.319 --> 00:31:08.960
That's a whole different realm of yes, yes.
00:31:09.279 --> 00:31:14.319
When you're saying the word plaxo or whatever, I was thinking it was like has to do with dentists stuff.
00:31:14.559 --> 00:31:16.240
It's just not, it's the Rolodex.
00:31:16.400 --> 00:31:18.240
So I was like, wow, Sean got into dentistry.
00:31:18.319 --> 00:31:18.720
No, he didn't.
00:31:18.880 --> 00:31:22.400
That orthodontist that that was the orthodontist thing.
00:31:22.720 --> 00:31:24.640
It really left a lasting impression.
00:31:25.279 --> 00:31:36.880
Um well, so the the one of his other plaxo co-founders said that the board was pissed off because Sean was just like he was showing up to work less often.
00:31:37.039 --> 00:31:50.400
And but he said that like at Napster, Parker was used to being that startup kid who was always backstage at all of the concerts, not the one who was actually managing the paperwork from behind a desk.
00:31:50.640 --> 00:31:52.160
He's the face, right?
00:31:52.319 --> 00:32:02.240
Yes, and that's what he thought building a startup was supposed to look like, that the board members were the ones, they were the ones managing the day-to-day business.
00:32:02.400 --> 00:32:07.359
And he was the one, you know, behind the scenes making the contacts at all of the parties.
00:32:07.519 --> 00:32:09.680
But he was a kid, he didn't know any better.
00:32:09.839 --> 00:32:24.000
So even after his time at Facebook, a Vanity Fair article described him as a web oracle genius with a knack for missing deadlines and appointments, going a-wall for weeks at a time, and a penchant for dodging the press.
00:32:24.079 --> 00:32:31.359
So I don't know that he ever really got over it, but there's no proof that he ever did anything but just skip work like a kid skipping class.
00:32:31.519 --> 00:32:31.680
Yeah.
00:32:31.920 --> 00:32:32.880
Back to the movie.
00:32:33.039 --> 00:32:33.359
Okay.
00:32:33.680 --> 00:32:44.799
Social Network presents the move to Cali House as like a huge, super contentious moment in the scene between Mark and Eduardo.
00:32:44.880 --> 00:32:45.039
Yeah.
00:32:45.200 --> 00:32:52.319
Eduardo's screaming about Sean and Trout and Marlin over this caged chicken.
00:32:52.400 --> 00:32:54.799
And Dustin is like, what's he talking about?
00:32:54.960 --> 00:32:56.160
Why are we talking about animals?
00:32:56.400 --> 00:32:56.640
Right.
00:32:56.880 --> 00:32:57.680
Here's the truth.
00:32:57.839 --> 00:33:07.200
In June 2004, McCollum, who was one of the founders of Facebook, he was going to Palo Alto for a summer internship that that he was already planned.
00:33:07.440 --> 00:33:08.000
Already planned.
00:33:08.559 --> 00:33:17.200
And D'Angelo, Mark's friend from high school, and Mark and McCollum, they had all been working on a side project called Wirehog.
00:33:17.359 --> 00:33:19.440
And do you remember who D'Angelo is?
00:33:19.599 --> 00:33:22.000
He was the one who created Synapse with Mark.
00:33:22.160 --> 00:33:22.799
Oh, yes.
00:33:23.039 --> 00:33:23.359
Okay.
00:33:23.680 --> 00:33:32.319
So Mark, Chris Hughes, and Dustin decide to go with McCollum, who's already decided to rent a house.
00:33:32.480 --> 00:33:37.599
And D'Angelo's gonna be there because he's got an internship in Palo Alto as well.
00:33:37.759 --> 00:33:38.079
Okay.
00:33:38.319 --> 00:33:44.319
So they're all just gonna be in this house for the summer where they can all work to keep Facebook running.
00:33:44.400 --> 00:33:49.839
Yeah, but they can also work to get Wirehog off the ground by fall semester.
00:33:50.000 --> 00:33:50.480
Why?
00:33:50.720 --> 00:33:54.240
Because it was this next big feature for Facebook.
00:33:54.480 --> 00:34:00.400
And Mark thought eventually that Facebook was gonna like fall off the end of the world.
00:34:00.559 --> 00:34:08.960
He he didn't see it as like a long-lasting endeavor, but he thought that Wirehog was gonna be the real long-lasting project.
00:34:09.119 --> 00:34:12.000
He thought this is the thing that's gonna last forever.
00:34:12.239 --> 00:34:17.920
And this is, you know, we need to get it up and we need to introduce it into Facebook as like an app.
00:34:18.079 --> 00:34:28.400
So Wirehog, what it was, was a file sharing platform that let users share anything from documents to music with their friends on a cloud-based platform.
00:34:28.559 --> 00:34:34.480
And although it was gonna be integrated into Facebook, it was also accessible to users outside of Facebook.
00:34:34.639 --> 00:34:42.400
So if you were a Facebook user, you could still share files with your sister who wasn't a Facebook user.
00:34:42.639 --> 00:34:49.599
So Mark saw it as far more profitable than Facebook with the potential to expand beyond the university scene.
00:34:49.840 --> 00:35:00.239
He actually asked Eduardo to forego his plans in New York City and come with them to Cali, but Eduardo could not be persuaded and he just didn't understand why.
00:35:00.400 --> 00:35:11.199
But it wasn't because he was super concerned about finding financial backers, it was because he had lined up this huge, well-paying internship with Lehman Brothers, an investment bank.
00:35:11.360 --> 00:35:12.639
Oh, that's yeah, that's a big bank.
00:35:12.800 --> 00:35:13.599
That's a big bank.
00:35:13.760 --> 00:35:16.960
So before they go their separate ways, though, they made a deal.
00:35:17.199 --> 00:35:24.960
Since all the guys in Cali were going to be working so hard for Facebook, Eduardo was going to work hard for Facebook too.
00:35:25.119 --> 00:35:30.960
While he was in NYC, he was going to spend the summer doing three things as CFO.
00:35:31.119 --> 00:35:35.440
He was going to set up the company, get funding, and make a business model.
00:35:35.599 --> 00:35:36.719
Those were his jobs.
00:35:37.039 --> 00:35:43.679
So they did take two interns with them also to Cali to code for the Facebook.
00:35:43.840 --> 00:35:49.840
They continued to pick up interns later in Cali from Stanford and other area schools.
00:35:50.079 --> 00:35:52.079
Do they did they do the challenge hacking?
00:35:52.320 --> 00:35:57.039
It wasn't quite how Sorkin wrote it, though it makes for a good time in the movie, you know?
00:35:57.360 --> 00:35:59.039
Hacking in shots and hacking in shots.
00:35:59.280 --> 00:36:05.760
Well, and Sorkin writes it better than Ben does, um, because Ben's like they're lined up in a straight line.
00:36:05.840 --> 00:36:06.079
Yeah.
00:36:06.320 --> 00:36:11.360
They're in both, they're taking shots, but in Ben's, they're hacking.
00:36:11.519 --> 00:36:17.840
And every time they're hacking causes their screen to like blink white, they have to do a shot.
00:36:17.920 --> 00:36:19.519
And that's the only time they take the shot.
00:36:19.599 --> 00:36:21.599
It's just when their screen goes white.
00:36:21.920 --> 00:36:29.280
But I think it's really interesting that it's written as like a final club punch event of Mark's own.
00:36:29.440 --> 00:36:37.679
You know, there's no proof that that's like there's no documentation anywhere that says that that's how he chose his interns for this event.
00:36:37.840 --> 00:36:41.519
Um, but that is how they presented it in both situations.
00:36:41.840 --> 00:36:46.800
Also incorrect here, Eduardo did not put$18,000 in an account.
00:36:46.960 --> 00:36:52.719
Uh, he put$15,000 in an account, and several sources report that Mark matched it.
00:36:52.960 --> 00:36:53.199
Okay.
00:36:53.360 --> 00:36:53.679
Okay.
00:36:53.920 --> 00:36:56.320
It wasn't to get Mark through the summer.
00:36:56.559 --> 00:36:58.559
Eduardo wasn't paying for the house.
00:36:58.800 --> 00:37:07.440
The account was to keep the Facebook.com running for all of the campuses that it was operational at and support the future projects that were coming.
00:37:07.679 --> 00:37:10.960
The lease for the house on La Jennifer Way.
00:37:11.039 --> 00:37:12.079
That's the name of the street.
00:37:12.320 --> 00:37:14.480
La Jennifer Way.
00:37:14.719 --> 00:37:15.039
Yeah.
00:37:15.920 --> 00:37:20.239
The lease had Mark, McCullum, and Muscovitz's names on it.
00:37:20.400 --> 00:37:21.440
Not Eduardo's.
00:37:21.599 --> 00:37:29.039
But what a line from Eduardo in that next deposition, he says, because they're like, why the heck would you give him that money?
00:37:29.199 --> 00:37:35.119
And he said, I wanted to be a team player, but mostly I figured how much could go wrong in three months.
00:37:35.280 --> 00:37:35.920
Yeah.
00:37:37.760 --> 00:37:43.199
Meanwhile, in May, Harvard Connection, now called Connect You, had actually launched.
00:37:43.360 --> 00:37:47.599
They launched in 15 schools to pretty low fanfare.
00:37:47.679 --> 00:37:47.920
Yeah.
00:37:48.159 --> 00:37:57.280
Facebook was on the news, literally on local and national television and print news, including CNN, CNBC, and the New York Times.
00:37:57.440 --> 00:38:02.719
And the Winklevi and Divya were getting ready for their graduation in May.
00:38:02.960 --> 00:38:05.920
And things were not going as they would have liked.
00:38:06.079 --> 00:38:06.400
Oh, yeah.
00:38:06.559 --> 00:38:18.159
While they're doing their thing, Mark's getting ready to leave for Cali, and the Harvard Crimson asks him for one last interview of the school year before he takes off to work on his new project.
00:38:18.559 --> 00:38:22.880
And the Crimson Reporter interviewed him while he was packing up his room.
00:38:22.960 --> 00:38:25.679
And in the article that's titled Mark E.
00:38:25.920 --> 00:38:36.320
Zuckerberg 06, the whiz behind the Facebook.com, which was published on June 10th, 2004, it does not mention Eduardo by name.
00:38:36.480 --> 00:38:43.280
It only mentions a business manager who is soliciting ads on websites to offset server costs.
00:38:43.440 --> 00:38:43.920
Oh wow.
00:38:44.159 --> 00:38:44.719
Yeah.
00:38:44.960 --> 00:39:01.760
In this interview, Mark says, quote, in the aftermath of FaceMash, I was just thinking to myself, not only is a Facebook something that would be very useful, but it's something that I don't want to have on my name as being the person who postponed it.
00:39:01.920 --> 00:39:02.480
Oh wow.
00:39:02.639 --> 00:39:04.480
He says after postponing Connect You.
00:39:04.719 --> 00:39:10.559
When he was asked about selling the Facebook.com and making money, he said, quote, that's not the goal.
00:39:10.719 --> 00:39:15.119
I mean, like anyone from Harvard can get a job and make a bunch of money.
00:39:15.280 --> 00:39:18.480
Not everyone at Harvard can have a social network.
00:39:18.639 --> 00:39:22.159
I value that more as a resource than like any money.
00:39:22.320 --> 00:39:22.960
End quote.
00:39:23.199 --> 00:39:24.320
So he has anger.
00:39:24.400 --> 00:39:25.039
He has anger.
00:39:25.280 --> 00:39:34.960
I need you to, I need you to think about the fact that we know Divia and the twins like religiously read the Harvard Crimson.
00:39:35.119 --> 00:39:35.440
Okay.
00:39:35.599 --> 00:39:35.920
Yeah.
00:39:36.159 --> 00:39:46.480
And so one of the last crimson newspapers they get not only has Mark Zuckerberg on the front touting the Facebook being called the whiz.
00:39:46.800 --> 00:39:53.760
I feel like I vaguely remember seeing a picture of him that I feel like he was like also showing off his uh sandals or something like that.
00:39:53.920 --> 00:39:56.400
But maybe that was like a Mandela effect thing.
00:39:56.559 --> 00:39:59.039
I feel like that's the picture they used for this article.
00:39:59.519 --> 00:40:04.320
Well, you you gotta imagine like the twins in Divya get this newspaper.
00:40:04.559 --> 00:40:08.800
There's Mark Zuckerberg just giving him the proverbial FU.
00:40:09.039 --> 00:40:09.360
Yeah.
00:40:09.519 --> 00:40:13.760
And then he's like, not everyone can have a social network.
00:40:14.159 --> 00:40:15.920
Not everyone at Harvard can do that.
00:40:16.000 --> 00:40:16.159
Yeah.
00:40:16.400 --> 00:40:24.480
You know, maybe other people at Harvard can have money because they're rich, but not everybody can have a social network like me.
00:40:24.719 --> 00:40:28.159
And also he's like, I didn't want to be the person who postponed it.
00:40:28.239 --> 00:40:34.800
And they've got to be like, dude, you freaking postponed ours, and that's all we asked you to help us do was get that up off the ground.
00:40:34.960 --> 00:40:43.920
That's a pretty interesting line that um about everyone at Harvard can make money, but not every like he's trying to make having a social circle like elite.
00:40:44.079 --> 00:40:45.360
Yeah, like more elite.
00:40:45.440 --> 00:40:47.440
Like Harvard is elite, yeah.
00:40:47.599 --> 00:40:55.039
And people that make money out of Harvard, they're elite people, but like he's saying, like, there's social networks that you can't get in Harvard.
00:40:55.119 --> 00:40:58.880
Uh, not everyone can get in Harvard, and that's like even more elite than elite.
00:40:59.039 --> 00:41:00.480
It's bold, it's crazy.
00:41:00.719 --> 00:41:10.960
Well, after this quote, this article goes directly into the allegations that he stole the idea of the Facebook from Connect You.
00:41:11.199 --> 00:41:18.320
And they call Connect You, quote, a site similar to the Facebook.com that launched last month.
00:41:19.199 --> 00:41:27.039
And they say they say Zuckerberg briefly worked for the site but soon left, after which the Facebook debuted.
00:41:27.199 --> 00:41:34.639
Zuckerberg denies the allegations of intellectual property theft, saying the Connect You creators' claims are baseless.
00:41:34.800 --> 00:41:35.360
And that's it.
00:41:35.440 --> 00:41:36.320
That's all they say.
00:41:36.400 --> 00:41:37.599
And that's the end of the article.
00:41:37.840 --> 00:41:40.400
So did Dollar Tree or Dollar General come first?
00:41:40.559 --> 00:41:41.519
Like, which one?
00:41:41.679 --> 00:41:44.639
Like, I feel like this needs to be a part of this conversation.
00:41:44.960 --> 00:41:45.679
I don't know.
00:41:45.920 --> 00:41:49.440
But so that happens, and then they graduate.
00:41:49.519 --> 00:41:54.480
And at their graduation ceremony, Connect Choose not mentioned or praised.
00:41:54.559 --> 00:42:04.800
Oh, but the commencement speech did mention hey, isn't it a great thing that one of our undergrads launched this really successful Facebook.com.
00:42:05.519 --> 00:42:06.320
Dear God.
00:42:06.559 --> 00:42:07.679
They had to sit through that.
00:42:07.840 --> 00:42:09.119
They have to sit through that.
00:42:09.440 --> 00:42:11.760
Then Mark and his pals get on this plane, right?
00:42:11.920 --> 00:42:13.679
Wait, were they the same year as Mark?
00:42:13.840 --> 00:42:14.079
No.
00:42:14.480 --> 00:42:16.079
They were seniors, he was a sophomore.
00:42:16.239 --> 00:42:18.079
But is there Eduardo was a junior?
00:42:18.239 --> 00:42:19.840
But it was during their graduation?
00:42:20.000 --> 00:42:21.280
That's hilarious.
00:42:23.360 --> 00:42:26.000
So then Mark and his pals get on their plane.
00:42:26.159 --> 00:42:42.960
They make their way to Silicon Valley, okay, where McCollum bought$20 worth of materials at a Home Depot and did create a zip line that later damaged the chimney, getting them eventually evicted and without a return deposit.
00:42:43.119 --> 00:42:48.320
But Sean Parker and his girlfriend did not come running at the sound of a crash, as we see in the film.
00:42:48.559 --> 00:42:53.840
Sean, homeless and broke, was living with his girlfriend and her parents at the time.
00:42:54.159 --> 00:43:02.239
But their house was literally blocks away from the La Jennifer Way house, and none of them were any the wiser.
00:43:02.400 --> 00:43:06.000
Like Sean didn't know, none of the Facebook kids knew.
00:43:06.159 --> 00:43:09.119
It was like the movie said that they were like across the street.
00:43:09.280 --> 00:43:09.599
Yes.
00:43:09.840 --> 00:43:10.639
Is what it sounded like.
00:43:10.880 --> 00:43:11.920
It was not that Kisben.
00:43:12.480 --> 00:43:13.360
But it was weird.
00:43:13.840 --> 00:43:17.119
When they brought that up, I was like, so did Mark scope out where Sean was staying?
00:43:17.280 --> 00:43:17.360
No.
00:43:17.519 --> 00:43:19.360
Oh no, it was Sean's like homeless.
00:43:19.519 --> 00:43:19.760
Okay.
00:43:20.079 --> 00:43:20.800
He was homeless.
00:43:20.960 --> 00:43:23.199
He was just like at his girlfriend's parents' house.
00:43:23.440 --> 00:43:29.039
If if this was an Eliza Kelly production, she would be saying tank all over the place.
00:43:29.440 --> 00:43:30.480
Like, you know.
00:43:30.800 --> 00:43:34.079
So until Mark and the guys, they like the mark.
00:43:34.159 --> 00:43:36.320
So Mark and the guys go for this walk.
00:43:36.400 --> 00:43:37.920
And this is another tank moment.
00:43:38.079 --> 00:43:43.440
For those of you who do not love Lisa like we do, tank means there are no coincidences.
00:43:43.679 --> 00:43:53.039
So they go for this walk and they're just walking through the neighborhood, and they happen to see Sean in the front yard of his girlfriend's parents' house.
00:43:54.000 --> 00:43:59.760
And he's in the front yard and he hears this group of people just yelling his name.
00:44:00.159 --> 00:44:05.119
And I think I read that he like at first was like, oh shit, who's coming for me?
00:44:05.280 --> 00:44:05.760
kind of thing.
00:44:06.000 --> 00:44:08.480
I imagine his feet were like sitting in a kiddie pool.
00:44:08.639 --> 00:44:10.239
He was like drinking like a mojito.
00:44:10.480 --> 00:44:11.920
You're making up stories again.
00:44:12.159 --> 00:44:13.760
Untwist, untwist.
00:44:13.920 --> 00:44:17.360
So then he finally is like, shit, is that Zuckerberg?
00:44:17.519 --> 00:44:23.360
And so Mark comes over, they start talking, and he explains to Mark, like, this is my girlfriend's house.
00:44:23.440 --> 00:44:24.800
Like, I'm just crashing here for a little bit.
00:44:24.960 --> 00:44:28.960
And Mark's like, dude, you should totally come crash at Casa Facebook.
00:44:29.119 --> 00:44:29.360
Yeah.
00:44:29.519 --> 00:44:34.079
And so Parker starts couch surfing there shortly afterward.
00:44:34.320 --> 00:44:36.960
So it's almost as weird as this scene in the movie.
00:44:37.039 --> 00:44:48.639
But you know, I guess they probably would have ran into each other eventually, since they kind of were going to be running in the same circles, you know, in that town, but it's very weird.
00:44:48.880 --> 00:44:57.039
So the next few scenes in the house and the club are pretty much a Ben Eduardo Sorkin production.
00:44:57.440 --> 00:44:57.920
Assumption.
00:44:58.079 --> 00:44:58.320
Yeah.
00:44:58.639 --> 00:45:08.480
Ben's book does an entire chapter from Sean's point of view, but like as he moves into the house, but it's really weird.
00:45:08.639 --> 00:45:10.960
Like it, it when I read it, it made me go.
00:45:11.119 --> 00:45:12.800
So did he actually talk to Sean?
00:45:12.960 --> 00:45:15.519
But I don't see why Sean would have had an interview.
00:45:15.760 --> 00:45:21.280
Like I don't, I don't know why, because Sean was friends with Mark, I don't know why Sean would have given him an interview.
00:45:21.440 --> 00:45:22.159
So I don't know.
00:45:22.239 --> 00:45:31.599
But it's it is literally the only chapter in the book that doesn't use the we can assume we're sure it was like this kind of language.
00:45:31.840 --> 00:45:32.320
Oh, really?
00:45:32.559 --> 00:45:34.159
It's very precise.
00:45:34.320 --> 00:45:36.639
This is exactly how it went down language.
00:45:36.800 --> 00:45:39.119
And so that's just very odd to me.
00:45:39.360 --> 00:45:45.199
But the book goes from him moving in like straight into a visit from Eduardo.
00:45:45.440 --> 00:45:48.800
And Mark and Dustin pick him up from the airport.
00:45:48.960 --> 00:45:53.119
They do not leave him stranded in the rain like a sad little boy.
00:45:53.679 --> 00:45:57.840
Um, they pick him up in the first car that Mark had ever owned.
00:45:58.000 --> 00:46:01.280
It was a Ford Explorer that worked without the key.
00:46:01.599 --> 00:46:15.440
And they went over uh after picking him up, they took him to meet Sean at a club for a charity party with the Victoria's secret models that were in the movie with just Sean and Mark.
00:46:15.519 --> 00:46:20.159
So in the movie, it was just Sean and Mark at a club with Victoria's secret models.
00:46:20.239 --> 00:46:22.800
Um, but in the book, Eduardo's there.
00:46:23.039 --> 00:46:24.480
This is, you know, he's with them.
00:46:24.639 --> 00:46:28.800
And in the book, this is the moment where Sean says, drop the the.
00:46:29.199 --> 00:46:30.000
But also in the book.
00:46:30.239 --> 00:46:30.639
Oh, it does.
00:46:30.800 --> 00:46:31.440
Okay, never mind.
00:46:31.760 --> 00:46:38.719
Also in the book, there's a Victoria's secret model who's allegedly getting extremely friendly with Mark.
00:46:38.880 --> 00:46:46.639
And Eduardo describes how Mark gets up and like quietly exits staged left with her.
00:46:47.119 --> 00:46:50.159
And he talks about how scandalous this is.
00:46:50.480 --> 00:46:55.440
Because um, as he mentions, isn't Mark dating Priscilla at this time?
00:46:55.599 --> 00:46:55.760
Yes.
00:46:56.000 --> 00:46:58.639
So I'm like, dude, like that's that's shady.
00:46:58.960 --> 00:46:59.760
That's that's shitty.
00:47:00.239 --> 00:47:01.760
Shady from the author, right?
00:47:01.840 --> 00:47:02.079
Yeah.
00:47:02.320 --> 00:47:05.840
So in the book, Eduardo goes back to New York.
00:47:06.000 --> 00:47:13.119
He does give him, like, the next day, he's like, and then Eduardo was like, How was the night with the girlfriend or with the you know model?
00:47:13.199 --> 00:47:16.079
And Eduardo or Mark was like, What girl?
00:47:16.239 --> 00:47:21.440
You know, it but that's like as and there was almost like a wink, wink, nudge, nudge tone to it.
00:47:21.519 --> 00:47:22.880
And I was like, that's shitty.
00:47:23.039 --> 00:47:36.159
So in the book, Eduardo goes back to New York after spending four days in California, and he claims that during those four days, they attended a ton of meetings, you know, it was like lots of business.
00:47:36.320 --> 00:47:45.440
And then they went, one of the meetings was on a yacht where they ate koala meat because they're exactly those kinds of douches now.
00:47:45.599 --> 00:47:49.679
Like it was, I was like, this is the stupidest thing I've ever read in my life.
00:47:49.920 --> 00:48:00.800
Eduardo gets on a plane and he also talks about how the whole time he's been in California, he's been ghosting his girlfriend Christy because she is very needy and crazy.
00:48:01.039 --> 00:48:03.280
And she's just been calling nonstop.
00:48:03.360 --> 00:48:05.280
So he basically just shut his phone off.
00:48:05.440 --> 00:48:20.239
So when he gets on the plane and he's waiting and the plane's taxiing, he turns his phone off and she calls him and she's done the very reasonable thing of setting all of the clothes that he has left in her dorm room on fire.
00:48:20.480 --> 00:48:24.239
And this has then set the entire dorm room on fire.
00:48:24.320 --> 00:48:24.639
Oh, yeah.
00:48:24.880 --> 00:48:32.719
And so the fire department's there and uh is discussing arresting her when she calls him and he answers.
00:48:33.039 --> 00:48:35.440
And he's like, Yeah, we're breaking up.
00:48:35.599 --> 00:48:39.440
And that's how Ben Eduardo say that whole thing went down.
00:48:39.599 --> 00:48:46.159
So we'll circle back to how it's portrayed in the movie after we untwist the regatta with the twins.
00:48:46.480 --> 00:48:46.800
Gotcha.
00:48:46.880 --> 00:48:47.039
Okay.
00:48:47.199 --> 00:48:55.119
Now, when the Winklevi were twist were uh racing the Henley regatta, yeah, Divia was not with them, nor were their parents.
00:48:55.280 --> 00:48:57.840
They were staying with a host family.
00:48:57.920 --> 00:49:01.599
And the host father asked them, Hey, do you know about this Facebook thing?
00:49:01.760 --> 00:49:03.760
My daughter is crazy about it.
00:49:03.920 --> 00:49:10.559
Now, it was not on two continents at this point, like it is presented um to us in the movie.
00:49:10.719 --> 00:49:11.840
Um, not exactly.
00:49:12.000 --> 00:49:17.280
His daughter had done a study abroad situation in the US.
00:49:17.440 --> 00:49:24.000
And as a US student at a university that had Facebook, she had a Facebook account.
00:49:24.239 --> 00:49:24.559
Gotcha.
00:49:24.719 --> 00:49:28.320
So when she returned home, she continued to have her Facebook account.
00:49:28.480 --> 00:49:33.039
And he said she took some amazing photos of the race.
00:49:33.199 --> 00:49:33.519
Yeah.
00:49:33.760 --> 00:49:39.440
And if you've got a Facebook account, she can send you these photos to you through this account.
00:49:39.599 --> 00:49:44.800
And the Winkel Voss twins decided, like at this point, they have one option left.
00:49:44.880 --> 00:49:45.760
It's time to sue.
00:49:46.159 --> 00:49:53.440
Which, you know, I think uh if I remember correctly, Tyler was like all about honor and doing the right thing.
00:49:53.519 --> 00:49:56.559
And Cameron was all about like, let's get our due, Dell.
00:49:57.119 --> 00:49:57.679
Let's get our due.
00:49:58.000 --> 00:50:01.840
And so basically it was like they were just waiting for one of them to give in.
00:50:01.920 --> 00:50:07.599
And that was the moment where the one that was like, all right, this is no longer a gentleman's battle.
00:50:07.679 --> 00:50:08.480
We're going in.
00:50:08.719 --> 00:50:18.559
Connect you was still running at this point, but its enrollment had pretty much stalled because the idea of a social networking prop platform is to network with your social group.
00:50:18.639 --> 00:50:26.480
And if they're all on the Facebook, yeah, why would you sign up for basically the exact same thing that your friends aren't on?
00:50:26.639 --> 00:50:26.880
Yeah.
00:50:27.039 --> 00:50:30.400
Um, so the boys had been, you know, miffed for quite a while.
00:50:30.639 --> 00:50:33.360
So we're now in the final home stretch of the movie.
00:50:33.440 --> 00:50:36.960
We it's the last 31 and a half minutes of the film.
00:50:37.119 --> 00:50:43.199
This is what I was doing when I was like sitting there with the thing and I was trying to go backwards and backwards, and you were like, What are you doing?
00:50:43.360 --> 00:50:48.719
I was seeing how far we were in, yeah, what we had left, including closing minutes.
00:50:48.880 --> 00:50:52.079
31 and a half minutes is what you have left of the movie.
00:50:52.239 --> 00:50:55.280
And it's the last 33 pages of the script.
00:50:55.440 --> 00:50:58.000
So here's how the Sorkin story plays out.
00:50:58.159 --> 00:51:04.719
I had I had to decide how I was gonna do this, and I've just split it up into Sorkin, Ben Eduardo, and the truth.
00:51:04.880 --> 00:51:11.199
And I I just watched a documentary about Tony Morrison, which was beautiful.
00:51:11.280 --> 00:51:15.440
I highly recommend it called Pieces I Am, The Pieces I Am.
00:51:15.679 --> 00:51:17.119
It just left Facebook.
00:51:17.199 --> 00:51:21.440
I don't know where you can watch it, or uh Netflix, I don't know where you can watch it, but it's beautiful.
00:51:21.599 --> 00:51:28.320
But someone said Tony once told them there were three three uh stories to every event.
00:51:28.480 --> 00:51:38.559
There's the what is known at a community level, there's what gets told at the news level, and then there's the truth of what like really happens.
00:51:38.639 --> 00:51:42.559
And when when she said that, like I literally just watched this Thursday, yeah.
00:51:42.719 --> 00:51:46.639
I was like, yes, that's what I'm dealing with with Facebook.
00:51:46.880 --> 00:51:47.119
Uh-huh.
00:51:47.199 --> 00:51:47.519
Yeah.
00:51:47.760 --> 00:51:49.519
Um, so yeah, so here we go.
00:51:49.679 --> 00:51:50.639
Sorkin's story.
00:51:50.880 --> 00:51:51.360
Sorkin.
00:51:51.760 --> 00:51:57.039
Eduardo shows up at Casa Facebook, and it's his first Cali visit.
00:51:57.119 --> 00:51:57.920
So he's soaked.
00:51:58.000 --> 00:51:58.639
He's in the rain.
00:51:58.719 --> 00:52:00.320
He's cold, he's wet, he's alone.
00:52:00.480 --> 00:52:00.639
Yeah.
00:52:00.800 --> 00:52:03.360
And Mark has forgotten to pick him up from the airport.
00:52:03.599 --> 00:52:08.880
Sean's running around the house on the phone, which is filled with girls and beer and video games.
00:52:08.960 --> 00:52:19.360
And on he's he's like making margaritas while he's shaking somebody down on the phone, and he's telling Dustin, who thinks he hears something, that he doesn't hear anything because he's running code.
00:52:19.519 --> 00:52:24.880
And there's this bong that's like almost to the ceiling, and the girls are toasted.
00:52:25.119 --> 00:52:27.920
Eduardo enters and he's like all judgy.
00:52:28.320 --> 00:52:36.880
And Mark finally shows up and is like, Wardo! And they've they've got the wall, and but Sean's like super rude, right?
00:52:37.039 --> 00:52:40.079
And he's like, You don't know who Peter Thiel is.
00:52:40.320 --> 00:52:46.480
And he says something to Eduardo that I was like, ooh, he says, You've read a lot about me, right?
00:52:46.639 --> 00:52:48.559
Like, I read nothing about you.
00:52:48.719 --> 00:52:49.599
Wanna know why?
00:52:49.760 --> 00:52:51.440
Because there's nothing to read.
00:52:51.519 --> 00:52:53.920
And I was like, Oh wow, buddy.
00:52:54.159 --> 00:52:58.800
So Mark and Eduardo go off to talk because Eduardo's like, please get me away from this douche.
00:52:59.199 --> 00:53:11.920
And Eduardo loses it on Mark because Sean's making business deals when he's the business side of the Facebook, and he does not want Sean representing Facebook in any way.
00:53:12.079 --> 00:53:20.320
He says he quit the internship on day one and he's been working on the Facebook exclusively while he's been in New York.
00:53:20.480 --> 00:53:24.480
And his girlfriend Christy's psychotic and he's scared of her.
00:53:24.719 --> 00:53:28.320
And Mark's like, well, but still, you have a girlfriend.
00:53:28.719 --> 00:53:29.280
That's nice.
00:53:29.599 --> 00:53:29.760
Yeah.
00:53:30.239 --> 00:53:32.079
That's definitely like the geek nerd.
00:53:32.159 --> 00:53:34.480
Like, I know, have you had girlfriends before?
00:53:35.679 --> 00:53:36.159
You have one.
00:53:36.719 --> 00:53:39.280
So then Mark's like, you've got to move out here, man.
00:53:39.360 --> 00:53:41.199
This is where everything is happening.
00:53:41.360 --> 00:53:44.239
And Eduardo's like, Did you hear what I said?
00:53:44.400 --> 00:53:48.079
And Mark says, You have to come here so you don't get left behind.
00:53:48.159 --> 00:53:53.519
And Eduardo's like, What the fuck do you mean, get left behind?
00:53:53.760 --> 00:53:56.480
And Mark invokes the name of Sean.
00:53:56.719 --> 00:54:00.960
And Eduardo is like, Sean's not part of Facebook.
00:54:01.119 --> 00:54:02.480
I'm the CFO.
00:54:02.719 --> 00:54:09.519
This is when Mark drops the bomb that Sean has not only set up the meeting with Peter Thiel, but with people all over town.
00:54:09.599 --> 00:54:13.440
And Eduardo is pissed because this is the first he's hearing about it.
00:54:13.519 --> 00:54:13.679
Yeah.
00:54:13.840 --> 00:54:19.199
And Mark's like, well, hard to keep you in the loop when you're literally on the opposite corner of the country.
00:54:19.360 --> 00:54:20.639
How's that going anyway?
00:54:20.719 --> 00:54:28.400
And so Eduardo freaks and freezes the bank account and cancels all of the existing checks and the lines of credit for the Facebook.com.
00:54:28.559 --> 00:54:39.840
Meanwhile, we see Sean and Prada and Mark and Hoodie and Flip Flops meet with Peter Thiel and some other guys who agree to be angel investors with a beginning$500,000.
00:54:40.320 --> 00:54:44.320
Peter just has one question: Who's this Eduardo Savarin guy?
00:54:44.639 --> 00:54:58.559
Well, he's the guy getting the shit scared out of him by his crazy girlfriend, uh, who sets a present that he's given her on fire while Eduardo is answering to Mark, who's on the phone now, about freezing the account.
00:54:58.719 --> 00:54:59.039
Yeah.
00:54:59.199 --> 00:55:02.400
Uh, which he said he did to mark to get Mark's attention.
00:55:02.559 --> 00:55:09.920
Uh Mark says he's jeopardized the entire company and he could have permanently destroyed everything he's worked on.
00:55:10.079 --> 00:55:12.880
Not we, he, and Eduardo has noticed.
00:55:13.119 --> 00:55:16.320
So Mark's losing his shit, Christy's losing her shit.
00:55:16.480 --> 00:55:24.079
Now Eduardo is losing his shit, and he's trying to put multiple fires out, both literally and figuratively.
00:55:24.480 --> 00:55:37.519
Mark tells him it was the act of a child, not a businessman, not a friend, but he's gonna let bygones be bygones because damn it, Peter Thiel has come through and he's setting them up in an office.
00:55:37.679 --> 00:55:41.760
He's reincorporating the company, and they need Eduardo's signature.
00:55:41.840 --> 00:55:45.440
So he needs to get back to San Francisco ASAP.
00:55:45.679 --> 00:55:50.239
He needs his CFO, and Eduardo is breaking up with Christy now.
00:55:50.320 --> 00:56:01.840
So he goes to Palo Alto and he signs a bunch of papers surrounded by boxes and lawyers, and there's lots of talk about stock options and old and new shares and a voter holding agreement.
00:56:02.000 --> 00:56:04.960
He'll own 1,320.
00:56:05.360 --> 00:56:19.039
No, 1,328,334 shares of stock, which represents 34.4% ownership, which may need to dilute to award shares to new investors.
00:56:19.280 --> 00:56:27.519
Mark's at 51%, Dustin at 6.8%, Sean Parker at 6.47%, and Peter Thiel at 7%.
00:56:28.000 --> 00:56:36.800
Eduardo signs with no personal lawyers present because, as he says in his deposition, he thought the lawyers were his lawyers.
00:56:36.880 --> 00:56:37.039
Yeah.
00:56:37.280 --> 00:56:40.559
Then he says to Mark in the deposition, I was your only friend.
00:56:40.639 --> 00:56:40.960
Yeah.
00:56:41.119 --> 00:56:42.320
You had one friend.
00:56:42.480 --> 00:56:44.159
My father won't even look at me.
00:56:44.239 --> 00:56:45.679
It's all very Shakespearean.
00:56:45.760 --> 00:56:58.079
So Mark's not coming back to school, but he tells Eduardo, who is, that he has to come back to Palo Alto in the winter when they hit 1 million members for a party that Peter is going to throw for them.
00:56:58.239 --> 00:57:00.480
Then we see the infamous prank.
00:57:00.639 --> 00:57:17.360
Mark shows up at Case Equity for an investment meeting 20 minutes late in his pajamas to meet with Mitchell Manningham, where he's supposed to listen to them beg to let them invest in Facebook and then say, Who's Mitch?
00:57:17.599 --> 00:57:20.239
Parker says, Fuck you, and then walk out.
00:57:20.480 --> 00:57:25.920
Sean is downstairs rejoicing, and he gives the building a two-handed salute.
00:57:26.079 --> 00:57:33.039
In November, Eduardo goes to Cali for what he believes to be the party and a business meeting.
00:57:33.360 --> 00:57:34.400
The company's hopping.
00:57:34.559 --> 00:57:46.800
A lawyer meets him and ushers him into the same room as before where he signed the papers, and he tells him there have been new investors and the dilution has happened and he's basically out.
00:57:47.199 --> 00:57:50.079
Eduardo loses his absolute shit.
00:57:50.239 --> 00:57:59.760
He goes out to the main room and Sean Parker is standing nearby and Mark refuses to look at him because, as Sean says, he's wired in.
00:57:59.840 --> 00:58:00.079
Yeah.
00:58:00.239 --> 00:58:04.480
So Eduardo destroys the computer and is like, still wired in.
00:58:04.639 --> 00:58:08.800
So Sean leans over to this girl and is like, yeah, call security.
00:58:10.000 --> 00:58:21.679
So we learn that only Eduardo's shares were diluted when 24 million new shares of stock were issued, leaving Eduardo with 0.03%.
00:58:22.880 --> 00:58:29.440
Mark's like, you were the business head of the company and you made a bad business deal with your own company.
00:58:29.599 --> 00:58:30.880
Like, not my fault.
00:58:31.039 --> 00:58:45.039
I mean, he's not necessarily wrong, but Eduardo calls Mark a pretentious douchebag and he accuses him of planting the chicken story and doing this all because Eduardo got into the Phoenix and he was jealous, which come on, Eduardo.
00:58:45.119 --> 00:58:47.519
Like really and Sean's like, what chicken story?
00:58:48.079 --> 00:58:51.599
Again, everybody who's like, what chicken?
00:58:51.760 --> 00:58:55.280
Like that this is the second person now that's like, what animal?
00:58:55.360 --> 00:58:57.360
What are we talking about with these animals?
00:58:57.679 --> 00:59:02.400
Um, Mark, like Eduardo's getting pulled off, and he's like, Nope, I got this.
00:59:02.480 --> 00:59:03.920
I'm walking, I'm leaving anyway.
00:59:04.000 --> 00:59:09.280
You know, he says, Mark better lawyer up because he's he's not coming back just for his 30%.
00:59:09.760 --> 00:59:12.719
He's coming back for the whole damn company.
00:59:12.960 --> 00:59:26.159
And Sean goes over in like his douche douchey douche and he tries to hand Eduardo a check that's written for his original$19,000 investment.
00:59:26.400 --> 00:59:32.800
But he says, good luck trying to cash it because it's written on a check from the account that you froze.
00:59:32.960 --> 00:59:37.119
And Eduardo fakes like he's gonna hit him, and Sean freaks.
00:59:37.199 --> 00:59:42.079
And Eduardo says he likes standing next to Parker because it makes him look so tough.
00:59:42.239 --> 00:59:42.559
Yeah.
00:59:42.719 --> 00:59:44.320
I'm like, that's a great line.
00:59:44.480 --> 00:59:50.159
So Eduardo's escorted out of the building, and Mark's like, Sean, did you have to rub salt in the wound?
00:59:50.320 --> 00:59:51.039
Yeah, no doubt.
00:59:51.280 --> 01:00:05.679
Which makes it look like Sean has orchestrated much of this, and that Mark's been a bit of a puppet, influenced largely by Parker, and that he's kind of getting tired of Sean's bullshit.
01:00:05.760 --> 01:00:06.639
Yeah, you know.
01:00:06.880 --> 01:00:12.960
Um, they're they're waiting for the number of users to roll over to 100 million.
01:00:13.519 --> 01:00:14.639
No, just one million.
01:00:14.880 --> 01:00:16.559
Uh just one million.
01:00:16.800 --> 01:00:21.440
Well, whatever the number is, one million, and they're because then the party's gonna start.
01:00:21.519 --> 01:00:27.920
Yeah, and Parker tells Mark he's gonna do an after party with an intern at a sorority.
01:00:28.079 --> 01:00:38.800
The intern walks up and she delivers Mark's I'm CEO bitch business cards, and the number rolls rolls over to 1,046.
01:00:39.440 --> 01:00:47.280
And while Sean is like reveling in this, you know, number of users, Mark literally looks like his dog has died.
01:00:47.360 --> 01:00:51.039
Yeah, like he he's I mean, he's lost his only friend, right?
01:00:51.280 --> 01:00:53.119
His one friend, his one friend.
01:00:53.360 --> 01:01:00.239
So Sean, we're at a sorority party with Sean, and he is that's always a good thing.
01:01:00.480 --> 01:01:05.840
He's lining up some coke with Dustin and a bunch of girls who are clearly barely legal.
01:01:06.000 --> 01:01:06.159
Yeah.
01:01:06.400 --> 01:01:21.760
Um, meanwhile, cops are coming in downstairs, and the cops come upstairs, and Sean doesn't know because he's just blabbing on like he's the god of the internet, and he realizes like finally, shit, there's cops.
01:01:21.840 --> 01:01:29.599
So he starts brushing off the coke, but then the cops come in and they're like, Okay, this intern is definitely not 21.
01:01:29.920 --> 01:01:32.880
And Sean has got coke on his hands, so they arrest him.
01:01:32.960 --> 01:01:40.079
Yeah, he calls Mark from jail and he says he wasn't doing anything, he's got allergies, yeah.
01:01:40.239 --> 01:01:41.840
And it was just a party.
01:01:41.920 --> 01:01:44.079
And Mark's like, this is gonna be in the news.
01:01:44.159 --> 01:01:45.679
Yeah, I'll get it under control.
01:01:45.760 --> 01:01:50.000
Yeah, and Sean's like, Paranoia, somebody set me up.
01:01:50.239 --> 01:01:52.480
And Mark's like, just go home, Sean.
01:01:52.880 --> 01:01:56.719
So we're in the final scene now, and the beautiful Rashida Jones.
01:01:56.800 --> 01:02:01.039
Yes, she she asks Mark, like, whatever happened to Sean, you know?
01:02:01.199 --> 01:02:03.519
And so we're like, oh crap, Sean's not there.
01:02:03.679 --> 01:02:06.239
And Mark says, Well, he still owns 7%.
01:02:06.639 --> 01:02:08.320
He's like, I'm not a bad guy.
01:02:08.480 --> 01:02:16.400
And she says she knows, and she assumes that 85% of testimony is exaggeration and 15% is perjury.
01:02:16.719 --> 01:02:19.920
Creation myths need a devil, she says.
01:02:20.079 --> 01:02:25.119
And I feel like this is Aaron Sorkin laying out the whole damn thing for the audience.
01:02:25.280 --> 01:02:29.119
My fidelities to the story, not Mark, not the truth.
01:02:29.280 --> 01:02:31.440
Yeah, this is a myth and a damn good one.
01:02:31.519 --> 01:02:35.519
Yeah, you know, like he just tells you like you can't take this 100%.
01:02:36.000 --> 01:02:42.880
Yeah, like 85% of what you just watched, exaggeration, 15% total bullshit.
01:02:43.039 --> 01:02:43.920
Like, this isn't true.
01:02:44.000 --> 01:02:44.880
So, what happens now?
01:02:45.039 --> 01:02:45.679
Mark asks.
01:02:45.840 --> 01:02:54.880
They'll work on a settlement to present Mark, she says, and he'll have to pay extra for an NDA because he's not likable and he would lose a trial jury.
01:02:54.960 --> 01:03:01.760
Yeah, because he was drunk and stupid and blogging and farm animals, and in the scheme of things, it's like a speeding ticket to him.
01:03:01.840 --> 01:03:02.000
Yeah.
01:03:02.159 --> 01:03:09.519
So at the beginning of the movie, Erica told him, You're going to go through life thinking girls don't like you because you're a nerd.
01:03:09.760 --> 01:03:14.480
And I want you to know from the bottom of my heart that won't be true.
01:03:14.639 --> 01:03:16.559
It'll be because you're an asshole.
01:03:16.719 --> 01:03:16.880
Yeah.
01:03:17.039 --> 01:03:20.159
But here, Rashida Jones says, You're not an asshole, Mark.
01:03:20.239 --> 01:03:22.000
You're just trying so hard to be.
01:03:22.159 --> 01:03:33.440
And she leaves and he types Erica's name into Facebook, and you're like, Oh, she just struck a nerve, and he's still hung up on Erica, and her words are still haunting him.
01:03:33.599 --> 01:03:43.280
And there she is, and he adds her as a friend, and he just keeps hitting refresh over and over and over until we get the Where Are They Now titles.
01:03:43.360 --> 01:03:43.840
Oh, yeah.
01:03:44.000 --> 01:03:44.239
Right.
01:03:44.400 --> 01:03:50.719
So the screen tells us that the Winklevosses received a$65 million settlement and signed an NDA.
01:03:50.800 --> 01:03:53.199
They rode for US and Beijing and placed sixth.
01:03:53.440 --> 01:03:58.960
Eduardo received an unknown settlement and his name was restored to the Facebook Masthead as co-founder.
01:03:59.360 --> 01:04:05.199
Facebook has 500 million members in 207 countries and is valued at$25 billion.
01:04:05.519 --> 01:04:08.000
This, of course, was in 2010 when it released.
01:04:08.400 --> 01:04:10.480
Mark's the youngest billionaire in the world.
01:04:10.639 --> 01:04:11.760
And great movie.
01:04:11.920 --> 01:04:14.239
Five Chef's Kisses out of five.
01:04:14.320 --> 01:04:15.599
I still stand by that.
01:04:15.840 --> 01:04:19.679
But now, how much of the last 30 minutes lines up with the book?
01:04:19.920 --> 01:04:21.840
How much of that lines up with real life?
01:04:21.920 --> 01:04:22.079
Yeah.
01:04:22.159 --> 01:04:22.400
All right.
01:04:22.559 --> 01:04:23.519
We're going to find out.
01:04:23.760 --> 01:04:24.880
We're diving in.
01:04:24.960 --> 01:04:28.000
Here's what a part two days part two.
01:04:28.559 --> 01:04:30.800
This is still, this is still part two.
01:04:31.199 --> 01:04:33.119
Here's Ben Wardo's take.
01:04:33.360 --> 01:04:35.440
July 25th, 2004.
01:04:35.679 --> 01:04:42.800
Eduardo calls Mark and is like, broke up with my crazy girlfriend, feeling really good about these advertisers that I met.
01:04:42.880 --> 01:04:47.840
And Mark's like, meh, Sean took us to a Jaegermeister party at Stanford.
01:04:48.000 --> 01:04:49.039
New York's lame.
01:04:49.199 --> 01:04:50.079
Callie's great.
01:04:50.159 --> 01:04:51.039
You're wasting time there.
01:04:51.199 --> 01:04:55.039
And Ed was like, but the investors, the advertisers, the banks.
01:04:55.360 --> 01:05:02.320
Parker takes the phone, according to Eduardo, and was like, I'm taking Mark to meet two potential investors.
01:05:02.400 --> 01:05:04.559
And if they like him, the deal's basically done.
01:05:04.719 --> 01:05:07.519
And Ed's like, You're not Spider Man.
01:05:07.760 --> 01:05:08.719
I'm Spider-Man.
01:05:08.800 --> 01:05:09.519
I run the show.
01:05:09.599 --> 01:05:10.719
You're the fake Parker.
01:05:11.039 --> 01:05:11.199
Yeah.
01:05:11.360 --> 01:05:13.519
I'm the business side of Facebook.
01:05:13.760 --> 01:05:14.719
Oh, I didn't even think of that.
01:05:14.880 --> 01:05:15.360
Parker.
01:05:15.679 --> 01:05:17.519
Oh my gosh, that's such a cool tie.
01:05:17.760 --> 01:05:20.800
Mark's just the coding side, is what he says.
01:05:21.039 --> 01:05:21.199
Yeah.
01:05:21.519 --> 01:05:22.800
I'm the business side.
01:05:23.039 --> 01:05:24.639
Mark's just the coding.
01:05:24.880 --> 01:05:25.360
Wow.
01:05:25.679 --> 01:05:26.000
Right?
01:05:26.320 --> 01:05:29.440
So then to Mark, he's like WTF.
01:05:29.599 --> 01:05:31.039
Parker is a house guest.
01:05:31.199 --> 01:05:41.280
So then Eduardo sends Mark after this phone call a letter, he says, reiterating their partnership agreement and is like, get in your lane and code.
01:05:41.440 --> 01:05:41.679
Wow.
01:05:41.920 --> 01:05:47.599
Yes, my 30% means I can thwart whatever you and Timberlake do.
01:05:47.760 --> 01:05:51.039
I want written confirmation that you understand.
01:05:51.519 --> 01:05:54.880
I rule the business throne, even from New York.
01:05:55.119 --> 01:05:59.519
Mark replies with like a ton of voicemails, just begging Eduardo to move to Cali.
01:06:00.079 --> 01:06:05.679
And Eduardo just lets him stew in it until July 28th when he finally calls Mark back.
01:06:05.760 --> 01:06:12.400
And Mark says he and Fake Spidey met with the investors and they want to be angel investors.
01:06:12.480 --> 01:06:14.480
And Ed is pissed.
01:06:14.719 --> 01:06:16.639
This has all been on his dime.
01:06:16.800 --> 01:06:24.400
In Bedmuardo's world, he has paid for the Cali house, the servers, the equipment, and the intern's salary.
01:06:24.639 --> 01:06:31.440
So he decides to send a message by freezing the bank accounts, canceling all the checks, and the line of credit.
01:06:31.519 --> 01:06:36.239
And Mark has never filed his consignatory forms anyway.
01:06:36.400 --> 01:06:38.000
So his name isn't even on the account.
01:06:38.079 --> 01:06:38.880
He can't sign it.
01:06:38.960 --> 01:06:39.440
Wow, really?
01:06:39.679 --> 01:06:41.679
Is what is what Ben Wardo says.
01:06:41.760 --> 01:06:42.079
Okay.
01:06:42.400 --> 01:06:47.280
In response, Mark reincorporated as a Delaware LLC.
01:06:47.519 --> 01:06:53.920
Facebook finally dropping the then moved his college tuition over to keep the servers running.
01:06:54.079 --> 01:06:57.760
A few days before this, he received the suit from Connect You.
01:06:58.079 --> 01:07:00.960
It would cost$200,000 to defend himself.
01:07:01.119 --> 01:07:04.400
The angel investors were offering$500,000.
01:07:04.559 --> 01:07:09.519
This was considered seed money to get through the next few weeks, with more to come when needed.
01:07:09.679 --> 01:07:19.039
This gave Thiel 7% of the company and a five-man board of directors to lead the company going forward, is what Eduardo says.
01:07:19.280 --> 01:07:24.719
Mark would still control the majority of the seats and carry the lion's share of the stock.
01:07:24.880 --> 01:07:25.119
Yeah.
01:07:25.360 --> 01:07:30.559
They also reissued the shares to include Sean, Dustin, and Chris.
01:07:30.719 --> 01:07:34.559
To which I say, Sir, Dustin and Chris were already in there.
01:07:34.719 --> 01:07:37.440
Well, at least Dustin was, so get your facts straight.
01:07:37.599 --> 01:07:46.000
Um, initially, Ben Wardo says they plan to keep Ed's shares at 30%, and he could be involved as much as he wanted.
01:07:46.159 --> 01:07:46.480
Okay.
01:07:46.639 --> 01:07:47.440
That's his take.
01:07:47.599 --> 01:07:50.320
I get 30% and I get to do as much as I want.
01:07:50.400 --> 01:07:50.559
Yeah.
01:07:50.800 --> 01:07:52.000
Or as little as I want.
01:07:52.719 --> 01:07:53.679
I love a job like that.
01:07:53.920 --> 01:07:54.559
Right.
01:07:55.440 --> 01:08:00.880
But now all of a sudden, there's these new rules that have been laid out in the papers he signed.
01:08:01.039 --> 01:08:04.960
His shares would be issued based on the amount of work he got done.
01:08:05.119 --> 01:08:17.119
So he'd be compensated based on the number of advertisers he found and at what price point he got them reined in at, regardless of the footwork and hours he put in to get them.
01:08:17.600 --> 01:08:21.680
The coders and Cali would actually be making more money than him.
01:08:21.760 --> 01:08:26.319
And if they had to raise more money, everyone's shares would be diluted further.
01:08:26.479 --> 01:08:28.399
He was very unhappy about this situation.
01:08:28.560 --> 01:08:44.000
According to the book, Sean and Thiel told Mark that there were not going to be any other investors that would ever consider coming on board with some rando kid running around New York claiming to be the business head, flaunting 30% and freezing accounts.
01:08:44.159 --> 01:08:44.399
Wow.
01:08:44.479 --> 01:08:44.720
Yeah.
01:08:44.880 --> 01:09:00.640
So by October, they the team had been kicked out of the La Jennifer Way House and had moved into a Los Altos house that Benduardo say Theel was paying for, as well as for two attorneys, the servers, and computer equipment.
01:09:00.880 --> 01:09:02.399
Eduardo had gone back to school.
01:09:02.479 --> 01:09:06.319
Mark and Dustin said they were taking time off, probably no more than a semester.
01:09:06.560 --> 01:09:18.479
Ed says that Mark convinced him to step back from the company and focus on his senior year, that the company had grown too big for just one person to handle the entire business side.
01:09:18.640 --> 01:09:24.960
And quote, it was simply impossible what he'd been demanding of Ed.
01:09:25.199 --> 01:09:35.119
They had 750,000 users when he went back to school, and Mark was going to hire a sales executive to handle things Ed had done in New York.
01:09:35.279 --> 01:09:40.880
They added the wall and groups to Facebook, which Eduardo claims was his idea.
01:09:41.119 --> 01:09:46.720
Ed signed the new incorporation papers and reports the same share numbers as Sorkin.
01:09:47.039 --> 01:09:56.319
He says his rise from 30 to 34.4% was a necessity due to future dilution as they hired more people and awarded other investors.
01:09:56.479 --> 01:09:57.439
That's what he was told.
01:09:57.680 --> 01:10:01.439
The vesting schedule said he couldn't sell shares anytime soon.
01:10:01.520 --> 01:10:17.119
So his ownership was really just on paper and also included a release of any claims against Mark and company that if he signed, he was releasing rights to anything he said that he owned before he signed these two papers.
01:10:17.279 --> 01:10:17.520
Okay.
01:10:17.600 --> 01:10:19.199
This is all Ed Wardo's story.
01:10:19.359 --> 01:10:20.159
Ben Wardo.
01:10:20.319 --> 01:10:21.119
This is their story.
01:10:21.279 --> 01:10:28.000
Ed thought, Mark's my friend, these are my lawyers because they're Facebook's lawyers, and I too am Facebook.
01:10:28.560 --> 01:10:30.399
And everyone will see dilutions.
01:10:30.479 --> 01:10:31.279
So he signed.
01:10:31.439 --> 01:10:35.680
December 3rd, he says he flew in for Thiel's 1 million user party.
01:10:35.840 --> 01:10:37.760
This is also Sean's birthday.
01:10:38.000 --> 01:10:40.319
He returns to Boston the very next day.
01:10:40.479 --> 01:10:41.520
Everything goes great.
01:10:41.760 --> 01:10:45.199
This is not the meltdown we see in the film, according to Ben Wardo.
01:10:45.279 --> 01:10:45.600
Gotcha.
01:10:45.840 --> 01:10:50.880
April 3rd, 2005, Eduardo's in his last two months of his senior year.
01:10:51.119 --> 01:10:53.920
Mark's opening the new Palo Alto offices.
01:10:54.079 --> 01:10:57.600
They're on their way to 3 million users and 500 campuses.
01:10:57.760 --> 01:11:02.960
I would like to point out that he goes from December 3rd to April 3rd.
01:11:03.119 --> 01:11:03.439
Okay.
01:11:03.920 --> 01:11:07.520
But for the last two months, he's had little communication with Mark.
01:11:07.680 --> 01:11:14.319
Eduardo has had so much time, he's even launched his own side business, a website called Job Boozle.
01:11:14.399 --> 01:11:24.720
It's a horrible name, which he considers a Facebook for jobs where college students can search for potential employers, share resumes, and network.
01:11:24.880 --> 01:11:32.720
Mark emailed Ed a few days before April 3rd, asking if he could come to Cali for a business meeting and to train a new hire.
01:11:32.880 --> 01:11:43.119
He also mentioned Sequoia Capital, run by Sean's Nemesis from his Plaxo days, and Xcel partners, both wanting to invest in the possibility of that happening.
01:11:43.279 --> 01:11:47.039
Plus, Don Graham, CEO of the Washington Post Co.
01:11:47.439 --> 01:11:52.159
Additionally, Sean, Mark, and Dustin were talking about selling some of their stock.
01:11:52.239 --> 01:11:56.560
And if the deal went through or or if the deal went through for$2 million.
01:11:57.039 --> 01:12:00.079
But Ed was like, wait, I can't sell my stock.
01:12:00.239 --> 01:12:01.760
So how are they selling theirs?
01:12:01.920 --> 01:12:03.680
So he was, you know, really confused.
01:12:03.840 --> 01:12:07.600
So April 4th, Eduardo gets on a plane and he goes to the new office.
01:12:07.680 --> 01:12:09.520
And there's a new lawyer at this.
01:12:09.920 --> 01:12:10.640
A different lawyer?
01:12:10.800 --> 01:12:11.199
Uh-huh.
01:12:11.359 --> 01:12:13.359
Oh, so not the same like in the movie.
01:12:13.760 --> 01:12:29.439
No, it's a new lawyer at this real office that is not in a house for the first time, but real commercial property with proper office furniture, new monitors, carpeting, and graffiti commissioned by a local artist covering the walls.
01:12:29.680 --> 01:12:33.279
He was given new papers that had been drawn up without him.
01:12:33.520 --> 01:12:45.760
The first was from January 14th, 2005, written consent of the Facebook stock stockholders to increase the number of shares now authorized to issue 19 million common shares.
01:12:46.000 --> 01:12:53.840
The second from March 28th issued up to 20 million eight hundred and ninety thousand shares.
01:12:54.079 --> 01:13:02.960
The third document allowed 3.3 million shares to Mark, 2 million shares to Dustin, and more than 2 million shares to Sean.
01:13:03.199 --> 01:13:07.359
This new share count left Ed with nearly 0% of the company.
01:13:07.520 --> 01:13:09.680
He learns they've diluted him out.
01:13:09.760 --> 01:13:10.960
He's going to sue.
01:13:11.119 --> 01:13:13.279
There's no big kerfuffle.
01:13:13.520 --> 01:13:18.880
And in June 2005, Ed graduates and he began pursuing his lawsuit.
01:13:19.039 --> 01:13:30.800
In the book, Banuardo says Mark probably didn't think he'd done anything wrong and that it was Eduardo who'd, quote, acted inappropriately, who had betrayed their friendship.
01:13:30.960 --> 01:13:36.319
From Mark's point of view, Eduardo had tried to hurt the company by freezing the bank account.
01:13:36.479 --> 01:13:41.279
From Mark's point of view, Eduardo had tried to make it difficult to raise VC money.
01:13:41.520 --> 01:13:43.119
VC is venture capitalist.
01:13:43.199 --> 01:13:43.279
Yeah.
01:13:43.439 --> 01:13:47.439
By asserting his own position as the titular head of business.
01:13:47.600 --> 01:14:02.800
From Mark's point of view, Eduardo had even done some other things that could have caused Facebook harm, such as starting a separate website, Jabozle, and approaching the same potential advertising base with what Mark might have seen as Facebook's trade secrets.
01:14:03.119 --> 01:14:08.079
Mark had as much reason to see himself as the wronged party as Eduardo did.
01:14:08.479 --> 01:14:12.239
But this is still the quote: Eduardo didn't see it that way.
01:14:12.399 --> 01:14:21.840
He believed fully and completely that he had been there from the beginning, that he had been integral, integral to Facebook's success.
01:14:22.079 --> 01:14:28.239
He had put up the initial money, he had put in the time, and he deserved what they agreed upon.
01:14:28.479 --> 01:14:29.520
Pure and simple.
01:14:29.760 --> 01:14:32.239
He did agree with Mark about one thing.
01:14:32.399 --> 01:14:34.239
It wasn't about friendship anymore.
01:14:34.399 --> 01:14:36.640
It was business, simply business.
01:14:36.880 --> 01:14:40.640
Eduardo would pursue what he believed he deserved.
01:14:40.800 --> 01:14:46.479
He'd take Mark to court, make him explain himself, make him do what was fair.
01:14:46.640 --> 01:14:47.439
End quote.
01:14:47.600 --> 01:14:48.880
So three months later.
01:14:52.399 --> 01:14:56.239
Three months later, Facebook had between eight and ten million users.
01:14:56.399 --> 01:14:58.640
Photo tagging and the news feed was coming.
01:14:58.800 --> 01:15:01.279
And then a college party got busted.
01:15:02.159 --> 01:15:04.000
And the Facebook president.
01:15:04.800 --> 01:15:06.560
It wasn't the night of the party in the book.
01:15:06.720 --> 01:15:07.039
Nope.
01:15:07.279 --> 01:15:10.560
Sean Parker, Facebook president, got arrested.
01:15:10.800 --> 01:15:14.239
This chapter in the book is literally all speculation.
01:15:14.399 --> 01:15:19.039
And reads, Did he call Mark or corporate lawyers?
01:15:19.279 --> 01:15:31.199
Quote, at some point that night, or maybe even the next day, Mark Zuckerberg likely received a phone call, maybe from corporate lawyers, maybe from Sean himself.
01:15:31.359 --> 01:15:31.920
End quote.
01:15:32.000 --> 01:15:33.439
That's how the whole chapter reads.
01:15:34.000 --> 01:15:34.800
That's so vague.
01:15:35.039 --> 01:15:35.359
Yes.
01:15:35.600 --> 01:15:45.199
Ben Wardo says that Sean was arrested at a college party with an undergrad, alcohol, coke, and weed, and Mark decided Sean had to go.
01:15:45.359 --> 01:15:47.760
Then we jump to May 2008 in the book.
01:15:47.920 --> 01:15:52.800
It literally goes from Sean getting kicked out to May 2008.
01:15:52.960 --> 01:15:53.279
Okay.
01:15:53.920 --> 01:15:59.359
And I have to assume that this is written after Eduardo has left the book project.
01:15:59.439 --> 01:15:59.760
Yeah.
01:16:00.000 --> 01:16:07.279
Because not only does Ben portray him as a sad drunk with no future, who's always out at a club.
01:16:07.520 --> 01:16:15.680
He also says that he's constantly going back to the Phoenix, even now, three years after graduating, like his life froze with that lawsuit.
01:16:16.000 --> 01:16:22.239
Ben shows us Ed drunk at a club, and not even Ed drunk at a club that night.
01:16:22.399 --> 01:16:37.520
It's Ed drunk at a club, reminiscing about a night in 2004 when he was at a club, after freezing the bank account, when he saw one, but he doesn't know which one, one of the Winkelvoss twins at another club.
01:16:37.680 --> 01:16:42.159
And he walked over to him, he shook his hand, and he said, I'm sorry.
01:16:42.319 --> 01:16:44.640
He screwed me like he screwed you guys.
01:16:44.800 --> 01:16:47.439
And then he turned and walked away.
01:16:47.680 --> 01:16:51.119
And that's where Ben Meserich leaves Eduardo.
01:16:51.279 --> 01:16:51.439
Wow.
01:16:51.600 --> 01:16:53.359
That's that's the end of Eduardo.
01:16:53.439 --> 01:16:55.600
That's the end of the whole damn thing for Ben.
01:16:55.920 --> 01:16:57.119
So the real story.
01:16:57.279 --> 01:17:02.560
I don't know that we'll ever get the real full untwisted story.
01:17:02.720 --> 01:17:04.720
Like, I just don't think that you can.
01:17:04.960 --> 01:17:07.680
But here's what I was able to untwist.
01:17:07.760 --> 01:17:08.079
Okay.
01:17:08.560 --> 01:17:14.960
We're gonna start with the suit that began in September 2004 with the Winklevas twins and Divya Narendra.
01:17:15.119 --> 01:17:21.279
For Divya, who just like completely drops out of the narrative and doesn't even get mentioned on the final screen.
01:17:21.439 --> 01:17:21.600
Yeah.
01:17:21.840 --> 01:17:23.520
I'm like, dudes, come on.
01:17:23.680 --> 01:17:24.399
The poor kid.
01:17:24.479 --> 01:17:26.000
It was his idea to begin with.
01:17:26.239 --> 01:17:36.640
The three of them did receive a$65 million settlement from Mark in June 2008, despite the judge calling it dorm chit chat.
01:17:36.800 --> 01:17:39.600
The judge was like, I don't, I don't even know why we're here.
01:17:39.680 --> 01:17:41.680
Like you guys had no signed documents.
01:17:41.840 --> 01:17:43.359
This was just dorm chit chat.
01:17:43.439 --> 01:17:43.600
Yeah.
01:17:43.760 --> 01:17:53.039
The settlement included$20 million in cash and$45 million worth of stock in the company valued at$36 a share.
01:17:53.279 --> 01:17:58.640
An NDA that apparently the twins thought was a suggestion that they could take or leave.
01:17:58.720 --> 01:18:01.199
So we have tons of details that we should not have.
01:18:01.439 --> 01:18:09.119
And the titles and keys to Connect You handed over to Mark, which Facebook then shut Connect U down immediately.
01:18:09.359 --> 01:18:14.960
The twins in return quickly began appealing the judgment of their award.
01:18:15.119 --> 01:18:22.800
The award was based on uh Microsoft's earlier investment in the company at$35.90 a share.
01:18:22.960 --> 01:18:33.840
They argued that Facebook was misvalued and that they'd been given stock worth$8.88 a share based on the numbers that Facebook had filed its taxes with.
01:18:34.000 --> 01:18:41.279
So you helped me do the math, rounding up with their$45 million awarded of shares.
01:18:41.439 --> 01:18:48.800
If they were really worth$36 a piece, they received$1,250,000 shares.
01:18:48.960 --> 01:18:49.279
Yes.
01:18:49.520 --> 01:18:52.720
To split amongst the three of them, however, they didn't correct.
01:18:52.880 --> 01:19:03.840
If the shares were actually only worth$9 and they were awarded$45 million, they should have received$5 million shares.
01:19:04.000 --> 01:19:11.680
So I mean, I would have been asking some questions too, but you know, probably before I signed on the dotted line, that's four times.
01:19:12.640 --> 01:19:13.600
That's four times as much.
01:19:13.840 --> 01:19:14.079
Yes.
01:19:14.479 --> 01:19:15.439
What they ended up with.
01:19:15.760 --> 01:19:23.600
So now when they when they took that initial settlement and signed the papers in June 2008, Diviya was like, Yep, I'm done.
01:19:23.680 --> 01:19:24.319
Moving on.
01:19:24.560 --> 01:19:24.960
Thanks.
01:19:25.119 --> 01:19:26.800
Thanks for the for the stuff.
01:19:26.960 --> 01:19:42.159
And Divya, the son of two doctors who immigrated from India to Queens, he took his 0.022% ownership in Facebook in the middle of a national financial crisis because it is 2008.
01:19:42.319 --> 01:19:46.720
Just want to remind everybody what was happening in the United States in 2008.
01:19:46.880 --> 01:19:47.199
Yeah.
01:19:47.359 --> 01:19:55.680
He took his little piece of Facebook and he built a different company called SomeZero, which is still a company today.
01:19:55.840 --> 01:20:04.000
It is a subscription platform where vetted investment professionals can publish their research into the market.
01:20:04.159 --> 01:20:20.079
And if someone is unqualified to post, they can still get a read-only subscription to access SumZero and get a hold of that info for their own investment purposes to like research and figure out how, you know, where should I put my money and why.
01:20:20.640 --> 01:20:36.239
In 2024, he launched Sum Zero Capital, a hedge fund powered by machine learning algorithms, read AI, that process the Sum Zero community's shared financial insights to make investment recommendations.
01:20:36.479 --> 01:20:43.920
So now if you are a member of SumZero Capital, you don't even have to like peruse all of Sum Zero to get that information.
01:20:44.159 --> 01:20:51.279
SomeZero Capital AI bots go in, take all of the information and make the recommendations for you.
01:21:01.520 --> 01:21:16.880
Divya follows Mark on Facebook and he told the Harvard Crimson in February of this year when they interviewed him that he appreciates the lessons that he learned from the Facebook Connect You debacle.
01:21:16.960 --> 01:21:28.319
He said, Quote, I feel privileged to have experienced that early in my career because that's the age when frankly, I think you can afford to take a lot of risk and nobody expects you to succeed.
01:21:28.399 --> 01:21:30.560
And at the same time, people want to help you.
01:21:30.720 --> 01:21:34.560
So I feel like he's got a really healthy like mindset going, you know.
01:21:34.880 --> 01:21:36.159
The winklevi, though.
01:21:36.399 --> 01:21:37.600
But he's succeeding right now.
01:21:37.680 --> 01:21:38.560
So yes.
01:21:38.960 --> 01:22:01.119
The winklevi, though, they held on appealing all the way through from that judgment in 2008 until April 2011, when a federal appeals court like upheld the ruling and was like, look, you guys are smart enough to know what you were signing when you signed the original settlement, and no one misled you.
01:22:01.279 --> 01:22:10.159
Um, they still had at the time one last appeal available to them, and that was taking it all the way up to the Supreme Court.
01:22:10.319 --> 01:22:16.479
But in mid-June, they announced they were no longer going to do that last appeal.
01:22:16.640 --> 01:22:20.319
Uh from from after April, they were like, We're going to the Supreme Court.
01:22:20.560 --> 01:22:22.239
But then mid-June, they changed their tune.
01:22:22.319 --> 01:22:24.479
They were like, never mind, we're not going to Supreme Court.
01:22:24.880 --> 01:22:36.640
But then basically the very next day, they said, We're pushing for discovery and a claim that Facebook intentionally or inadvertently suppressed evidence during the 2008 settlement.
01:22:36.800 --> 01:22:36.960
Wow.
01:22:37.119 --> 01:22:39.439
So they were just starting a brand new suit.
01:22:39.600 --> 01:22:50.239
Um, in response, Forbes wrote an article and called them litigation and Facebook addicted, and pointed out that they both have Facebook accounts.
01:22:51.680 --> 01:22:52.960
Well, I mean, yes.
01:22:53.279 --> 01:23:02.960
So a month later, US District Judge Douglas Woodcock just completely rejected their motion, dismissed the case, and told them to get over their belly aching.
01:23:03.119 --> 01:23:04.560
He was like, We're done with you.
01:23:04.720 --> 01:23:06.000
Uh, they took their payout.
01:23:06.079 --> 01:23:19.840
Uh, with it, they created the firm Winkle Voss Capital, and they invested$11 million in Bitcoin in 2012 when it was trading at wait for it, nine dollars a coin.
01:23:20.000 --> 01:23:20.319
Wow.
01:23:20.560 --> 01:23:21.600
I'm just saying it.
01:23:21.680 --> 01:23:28.000
That's another Elisa Kelly tank moment because that's what they wanted their Facebook shares at.
01:23:28.159 --> 01:23:29.760
They used$11 million.
01:23:30.399 --> 01:23:34.239
I yes,$11 million,$9 a coin.
01:23:34.399 --> 01:23:35.520
Do the math for us.
01:23:35.680 --> 01:23:36.560
But think about this.
01:23:36.720 --> 01:23:39.039
So that's like$1.2 million shares.
01:23:39.359 --> 01:23:46.880
They wanted their Facebook$45 million of shares at$9 a share, and they did not get it.
01:23:46.960 --> 01:23:51.199
But they did get Bitcoin at$9 a share, you know?
01:23:51.359 --> 01:23:52.319
That's hilarious.
01:23:52.560 --> 01:23:53.520
So tank.
01:23:54.880 --> 01:23:58.319
If they still kept that money in there, they have like close to$80 billion.
01:23:58.880 --> 01:24:00.079
Well, listen, I'm gonna tell you.
01:24:00.239 --> 01:24:00.479
Okay.
01:24:00.640 --> 01:24:08.800
So by 2013, they owned approximately one percent of the world's total Bitcoin circulating Bitcoin.
01:24:09.039 --> 01:24:23.920
They founded the Gemini Crypto Exchange, a heavily regulated high-security crypto exchange platform that worked directly with the New York State Department of Financial Services to set rules around exchanging crypto to traditional cash.
01:24:24.079 --> 01:24:29.520
It had a little bit of problems and they had to pay some fines later, like about 2019.
01:24:29.600 --> 01:24:31.359
Yeah, but they did the damn thing.
01:24:31.760 --> 01:24:38.000
In 2017, they became the world's first publicly verified crypto billionaires.
01:24:38.479 --> 01:24:43.840
They went on to dabble in NFT startups, biotech companies.
01:24:44.000 --> 01:24:45.039
You're not gonna like this part.
01:24:45.119 --> 01:24:47.279
They bankrolled Donald Trump's campaign.
01:24:47.520 --> 01:24:47.680
Yeah.
01:24:47.920 --> 01:24:51.119
I mean, I didn't like him when I first saw them on the screen.
01:24:51.439 --> 01:24:59.680
In an interview at a fortune conference, Larry Summers, the Harvard president that they went to and like threw the big fit with.
01:24:59.840 --> 01:25:09.600
Yeah, uh, he also served as Treasury Secretary under Clinton and was top economic advisor to Obama.
01:25:09.760 --> 01:25:13.039
He said about the twins, this is just like five out of five.
01:25:13.199 --> 01:25:18.239
Rarely have I encountered such swagger, and I tried to respond in kind.
01:25:18.560 --> 01:25:30.159
One of the things you learn as a college president is that if an undergraduate is wearing a tie and jacket on Thursday afternoon at three o'clock, there are two possibilities.
01:25:30.399 --> 01:25:33.680
One is that they're looking for a job and have an interview.
01:25:33.760 --> 01:25:36.640
Yeah, the other is that they're an asshole.
01:25:37.680 --> 01:25:39.359
This was the latter case.
01:25:39.520 --> 01:25:40.079
Yes.
01:25:40.640 --> 01:25:51.359
The Winkleby threw a big fit about their nine dollar shares for a good long while, but by February 2012, they'd changed their tune completely when Facebook was getting ready to go public.
01:25:51.600 --> 01:26:08.560
Cameron actually posted on Twitter, we are excited for the hashtag Facebook IPO plus wish the company plus all involved the very best, comma, an amazing accomplishment accomplishment exclamation point.
01:26:08.720 --> 01:26:16.560
At the time, they were potentially looking at earning up to$300 million worth of Facebook shares if the deal went through.
01:26:17.039 --> 01:26:17.760
It went through.
01:26:18.000 --> 01:26:30.720
So they were valued at approximately$300 million, immediately liquidated part of their holdings, and then they liquidated the remaining shares as soon as the lockup period expired over the next year.
01:26:30.880 --> 01:26:35.600
The twins stated that they cashed out nearly$500 million total.
01:26:35.760 --> 01:26:41.600
Now, the twins had provided the majority of the financial capital to fund ConnectU.
01:26:42.079 --> 01:26:49.760
So when the judgment came down for that lawsuit, they took the majority of the settlement.
01:26:49.920 --> 01:26:55.359
Um, they their split of the award was equal to the percentage that they all put in.
01:27:02.640 --> 01:27:10.319
So Divya's 0.022% of Facebook was equal to you know what he had put in.
01:27:10.479 --> 01:27:17.439
Not that he put 0.022% into Connect U, but you know, that's what he it shook out to in Facebook terms.
01:27:17.680 --> 01:27:25.680
But his 0.0.022% was worth 20 to 23 million dollars when Facebook went public.
01:27:25.920 --> 01:27:26.479
That's rough.
01:27:26.720 --> 01:27:28.000
Yeah, it's a hard life.
01:27:28.159 --> 01:27:36.399
Now, before we move on, as an aside, as an aside, well, but you know that's not even first world, that's like above first world problems.
01:27:36.720 --> 01:27:41.840
But I do want to point out, like, you know, Divya didn't like his parents were doctors in India.
01:27:42.079 --> 01:27:47.920
They immigrated to Queens, and he was not a rich kid at Harvard.
01:27:48.079 --> 01:27:48.479
Yeah, yeah.
01:27:48.640 --> 01:27:49.199
You know?
01:27:49.439 --> 01:27:51.199
So I kind of love this for him.
01:27:51.439 --> 01:27:51.920
Oh, that's cool.
01:27:52.239 --> 01:27:55.840
Divya might be my favorite character in the whole damn thing.
01:27:56.079 --> 01:27:59.520
Um, before we move on, as an aside, I want to remind you of.
01:28:00.079 --> 01:28:01.119
Aaron Greenspan.
01:28:01.359 --> 01:28:09.359
He was the Harvard student who launched the house system with the Universal Facebook in 2003, August 2003.
01:28:09.920 --> 01:28:14.239
We talked about him briefly in the first episode of the Facebook saga.
01:28:14.800 --> 01:28:19.680
He knew Mark, and they talked, just in case you didn't watch that one, he knew Mark.
01:28:19.760 --> 01:28:31.680
They talked about their projects together, but Mark was cagey, and he had proof that Mark had like gone backdoor walking through his program before he launched Facebook.com.
01:28:31.840 --> 01:28:38.159
And he told New York Times that Mark plundered him in the Winklevi in an interview.
01:28:38.399 --> 01:28:49.840
Well, he filed a trademark suit, a trademark dispute against Mark over the use of the word Facebook in July 2006.
01:28:50.000 --> 01:28:50.239
Okay.
01:28:50.399 --> 01:28:55.680
This is hilarious to me because the rules around trademarks are like very specific.
01:28:55.760 --> 01:29:07.119
So I don't know how anyone in God's given earth could have filed a trademark suit or like dispute for the word Facebook because it's used so widely everywhere and it had long existed before him.
01:29:07.279 --> 01:29:08.000
So I don't get it.
01:29:08.159 --> 01:29:14.399
And I know this because I'm a copywriter and so I deal with trademark like usage whenever I'm having to name things a lot.
01:29:14.640 --> 01:29:16.880
So I was like, what is he doing?
01:29:17.039 --> 01:29:23.119
The the other company, Facebook.com, that kept them from naming it Facebook.com, that wasn't even him.
01:29:23.199 --> 01:29:27.520
That was like a completely different company that like wasn't even a social networking platform.
01:29:27.600 --> 01:29:31.600
It's it's oh really yeah, it's just all very loosey goosey.
01:29:31.680 --> 01:29:34.640
Like I'm I'm assuming they bought the we're not there yet.
01:29:34.880 --> 01:29:35.199
Okay.
01:29:35.520 --> 01:29:46.159
So I I just I I don't know how anyone, literally anyone, even Zuck, could file a trademark dispute for Facebook for that word.
01:29:46.319 --> 01:29:47.600
However, Aaron did.
01:29:47.760 --> 01:30:01.039
And while he was not in the movie for his lawsuit, he did receive an undisclosed multi-million dollar settlement for trademark usage in 2009 that came along with an NDA.
01:30:01.119 --> 01:30:05.199
And while he kept the dollar amount confidential, he didn't keep his mouth shut.
01:30:05.359 --> 01:30:15.920
Um, in November 2011, he sued Columbia Pictures for leaving him out of the movie and Random House for changing his name in the book.
01:30:16.079 --> 01:30:16.640
Oh wow.
01:30:16.800 --> 01:30:21.359
He alleged this is fantastic, and it was like the first time that anybody had ever done this.
01:30:21.439 --> 01:30:24.399
I don't know if it's been done since, but it's just crazy to me.
01:30:24.640 --> 01:30:29.359
He alleged in the courts defamation by omission.
01:30:29.920 --> 01:30:30.159
Yeah.
01:30:30.319 --> 01:30:30.800
Wow.
01:30:31.039 --> 01:30:31.520
Yes.
01:30:31.760 --> 01:30:40.479
And he was seeking hundreds of thousands of dollars in statutory damages and a permanent injunction against both works, the movie and the book.
01:30:40.640 --> 01:30:41.279
He lost.
01:30:41.439 --> 01:30:54.800
Remarkably, he also brought his case against Benesrik's book, which used Aaron's unpublished autobiography as a secondary source, but did not mention him directly in the story.
01:30:54.960 --> 01:31:01.119
He alleged that he had sent his autobiography that he had written and later self-published.
01:31:01.279 --> 01:31:04.880
He says that he sent that to Random House to try and get them to publish it.
01:31:05.039 --> 01:31:07.600
And that Random House had rejected his book.
01:31:07.760 --> 01:31:08.800
They had declined him.
01:31:08.880 --> 01:31:08.960
Yeah.
01:31:09.199 --> 01:31:13.039
But then they kept the book and they gave it to Ben as source material.
01:31:13.359 --> 01:31:13.520
Wow.
01:31:13.680 --> 01:31:14.960
That's what he says.
01:31:15.199 --> 01:31:17.760
Allegedly, that is his claim.
01:31:18.000 --> 01:31:27.920
So he says that because the book is nonfiction in his suit, he said because the book was nonfiction, it was a misrepresentation.
01:31:28.159 --> 01:31:34.800
The judge that threw the case out said that, because remember, he's already tried suing Random House.
01:31:34.880 --> 01:31:36.800
He's already tried suing the movie.
01:31:36.960 --> 01:31:38.399
Now he's going after Ben.
01:31:38.560 --> 01:31:45.119
The judge gave the most amazing response that is like the through thread of this whole damn thing.
01:31:45.279 --> 01:31:57.199
The term nonfiction only means that the literature is based on true stories or events, not that every statement is in fact demonstrably true.
01:31:57.359 --> 01:32:00.479
That is what the judge said about what nonfiction is.
01:32:00.640 --> 01:32:01.039
Wow.
01:32:01.199 --> 01:32:04.560
And that was his basis for kicking out the lawsuit.
01:32:04.720 --> 01:32:13.359
And I read that and I was just like, I think I need to find out what I that like I have misunderstood what nonfiction literature was then.
01:32:13.840 --> 01:32:16.479
I don't think the judge knows what nonfiction literature is.
01:32:16.720 --> 01:32:25.600
I I mean, after I read that, I was like, okay, you know, there's a lot of stuff that like you find in the nonfiction section of the library that probably isn't necessarily like true.
01:32:25.920 --> 01:32:30.159
Well, I mean, I guess you could look at it as uh a bunch of it's like biased, right?
01:32:30.319 --> 01:32:35.199
So I mean on the author's point of view and yeah, what they want to convey, anyways.
01:32:35.439 --> 01:32:35.680
Right.
01:32:35.920 --> 01:32:42.960
So, you know, he's not he's not wrong, but like also, I don't, I don't know, like it's it's just crazy.
01:32:43.119 --> 01:32:47.039
So, okay, we're gonna get into the Sean Eduardo and Mark of it all.
01:32:47.119 --> 01:32:47.439
You ready?
01:32:47.600 --> 01:32:47.840
Okay.
01:32:48.000 --> 01:32:55.680
Timelines are sticky because it's a he said, he said kind of situation, and and a lot's sealed under NDAs, but I've done my best.
01:32:55.840 --> 01:32:57.119
This is the alleged rundown.
01:32:57.279 --> 01:32:58.720
And this was crazy.
01:32:58.880 --> 01:32:59.760
You saw me today.
01:32:59.920 --> 01:33:06.319
I was literally copy pasting things into a different Word doc because I was like, this is not even still in order.
01:33:06.560 --> 01:33:10.399
Sean stepped in as an advisor to Mark as soon as he landed on the couch.
01:33:10.560 --> 01:33:15.520
Stephen Levy says that Mark was never sure that the facebook.com was going to really take off.
01:33:15.600 --> 01:33:21.199
And Sean was always reassuring him that this was a serious business with promise to last.
01:33:21.600 --> 01:33:26.720
When he found out that they incorporated the business in Florida, he said, What?
01:33:26.800 --> 01:33:28.000
Why'd you guys do that?
01:33:28.159 --> 01:33:36.800
And Levy says that anybody who knows anything, Levy says that anybody who knows anything would know that it was a rookie mistake.
01:33:36.880 --> 01:33:46.319
That if they had known better, they would have incorporated in Delaware, where big companies operate with the most impunity and the least transparency.
01:33:46.479 --> 01:33:51.760
As far as Sean was concerned, that was something that needed fixed like very quickly.
01:33:51.920 --> 01:33:53.680
And he told Mark as much.
01:33:53.760 --> 01:33:56.079
But he also knew that Mark needed money.
01:33:56.319 --> 01:34:00.159
Eduardo was not bringing in funding and money was running out.
01:34:00.399 --> 01:34:11.359
Sean started looking for possible investors among the VCs in Silicon Valley that he knew, but they needed to reincorporate in Delaware first before they could get the funding.
01:34:11.520 --> 01:34:18.239
Savron, the reason for that is because Severin would not respond to Mark's calls to come out to California.
01:34:18.720 --> 01:34:24.000
They needed him to sign papers so that they could refile the company before any funding could happen.
01:34:24.159 --> 01:34:27.840
And Eduardo would not sign off on it, basically because he was butthurt.
01:34:28.239 --> 01:34:37.359
Mark even emailed Eduardo and offered him his frequent flyer miles if he would just get his ass on a plane and get out to Palo Alto, Eduardo wouldn't come.
01:34:37.520 --> 01:34:48.239
So the situation was getting worse, and the Zuckerberg family was about to take out personal loans to keep their son's company afloat because there was not money to keep the servers running.
01:34:48.399 --> 01:34:51.439
Mark realized he was going to have to do something about Eduardo.
01:34:51.520 --> 01:35:01.840
So in an IM, Mark said, even though there was a risk of future litigation, he knew that he had to take action because until he did something, Eduardo would always have control.
01:35:02.000 --> 01:35:05.520
He said, quote, Eduardo's refusing to cooperate at all.
01:35:05.760 --> 01:35:11.840
We basically now need to sign over our intellectual property to a new company and just take the lawsuit.
01:35:12.079 --> 01:35:14.560
I'm just going to cut him out and then settle with him.
01:35:14.880 --> 01:35:18.319
And he'll get something, I'm sure, but he deserves something.
01:35:18.560 --> 01:35:23.680
He has to sign stuff for investments and he's lagging, and I can't take the lag.
01:35:23.840 --> 01:35:24.239
End quote.
01:35:24.399 --> 01:35:24.960
And it worked.
01:35:25.119 --> 01:35:28.880
The new company was incorporated in Delaware on July 29th.
01:35:28.960 --> 01:35:32.239
And then that company acquired the old Florida company.
01:35:32.319 --> 01:35:34.720
And then the funding could actually begin.
01:35:34.800 --> 01:35:36.159
And this is where they got the funding.
01:35:36.399 --> 01:35:43.680
Parker called his old boss, Mark Pincus, and Reed Hoffman from LinkedIn and PayPal about Facebook fundraising.
01:35:43.840 --> 01:35:47.600
This was like quite possibly the smartest idea he had ever had.
01:35:47.840 --> 01:35:50.960
Hoffman literally created Web 2.0.
01:35:51.039 --> 01:35:51.199
Okay.
01:35:51.359 --> 01:35:52.560
That's who Hoffman was.
01:35:52.640 --> 01:35:52.960
Okay.
01:35:53.279 --> 01:35:57.680
Do you remember the six degrees platform that we talked about in the first episode?
01:35:57.920 --> 01:35:58.159
Okay.
01:35:58.319 --> 01:36:01.680
Well, Hoffman had found out that it was going up for auction.
01:36:01.760 --> 01:36:04.479
And he and Pincus bid on it together.
01:36:04.720 --> 01:36:08.640
They got outbid by Yahoo, but you know, because hi, Yahoo.
01:36:08.800 --> 01:36:14.479
But they knew that Yahoo had like a 30-day cooling off period on all big purchases.
01:36:14.720 --> 01:36:21.119
So they went to YouthStream Media and they said, look, you're gonna have to wait 30 days for Yahoo's money.
01:36:21.520 --> 01:36:28.319
And then because it's an electronic transfer, you're gonna have to wait some more for all of that to clear both banks.
01:36:28.399 --> 01:36:28.560
Yeah.
01:36:28.800 --> 01:36:32.159
But you can have our money in cash tomorrow.
01:36:32.319 --> 01:36:35.199
And YouthStream Media was like, Oh yeah, that sounds better.
01:36:35.359 --> 01:36:36.640
And so they won.
01:36:36.800 --> 01:36:39.520
And in December 2003, it was theirs.
01:36:39.680 --> 01:36:41.119
They beat Yahoo that way.
01:36:41.279 --> 01:36:41.600
Wow.
01:36:41.760 --> 01:36:44.319
So did they want the six degrees platform?
01:36:44.479 --> 01:36:44.800
No.
01:36:44.960 --> 01:36:50.880
They wanted the intellectual property patent for social networking that was attached to it.
01:36:51.359 --> 01:37:01.439
They knew that Yahoo was trying to get it for the exact same thing because Yahoo wanted to use that patent to give themselves exclusive rights to social networking.
01:37:01.600 --> 01:37:07.359
They wanted to shut down all existing social networking and have their own.
01:37:07.520 --> 01:37:10.399
And it was just going to be a Yahoo monopoly.
01:37:10.720 --> 01:37:12.000
One social network site.
01:37:12.159 --> 01:37:17.279
Goodbye, Prinster, goodbye, MySpace, goodbye, anything else that existed at the time.
01:37:17.439 --> 01:37:27.600
So Pincus and Hoffman, contrarily, they wanted social networking to be open and free for use by anyone and everyone who wanted to create one.
01:37:28.000 --> 01:37:32.000
If Yahoo had won, there never could have been a Facebook, period.
01:37:32.159 --> 01:37:36.800
Not at schools, not anywhere, unless Yahoo created it, ran it, owned it.
01:37:36.960 --> 01:37:38.640
That's the only way that it could have happened.
01:37:38.720 --> 01:37:39.920
But Yahoo didn't.
01:37:40.079 --> 01:37:47.439
So less than a year after Pincus and Hoffman wins it, Sean brings Mark to Pincus and Hoffman to meet them.
01:37:47.760 --> 01:37:52.720
So by this point, 80% of Facebook users were signing on every single day.
01:37:52.880 --> 01:37:54.159
And this was unheard of.
01:37:54.560 --> 01:37:57.840
And it completely dwarfed Pincus's own platform.
01:37:58.000 --> 01:38:06.000
He had Tribe.net and his users was in the single digit percentage of signing on daily.
01:38:06.479 --> 01:38:07.199
So he was in.
01:38:07.279 --> 01:38:08.800
He was he was like 80%.
01:38:09.119 --> 01:38:10.880
Yeah, this is a no-brainer.
01:38:11.119 --> 01:38:11.439
This is gold.
01:38:11.520 --> 01:38:11.760
I'm in.
01:38:12.079 --> 01:38:16.640
Hoffman wanted to meet Mark II, but he was a friendster investor.
01:38:16.720 --> 01:38:19.359
So he knew that he had to like tread lightly, right?
01:38:19.439 --> 01:38:21.119
Because he's going to be the competition.
01:38:21.199 --> 01:38:21.439
Yeah.
01:38:21.600 --> 01:38:24.560
So he pulled in his friend Peter Thiel.
01:38:24.880 --> 01:38:27.600
He knew Peter from PayPal.
01:38:27.680 --> 01:38:29.199
They were former colleagues.
01:38:29.359 --> 01:38:31.199
And he's like, I got this kid.
01:38:31.359 --> 01:38:32.239
We need to meet him.
01:38:32.399 --> 01:38:33.840
Can we meet him at your office?
01:38:34.000 --> 01:38:38.640
So they go to meet Mark and Sean at Peter Thiel's office.
01:38:38.720 --> 01:38:44.479
And Peter had also brought Matt Kohler, who was a gin junior member of LinkedIn.
01:38:44.640 --> 01:38:51.680
So it's a meeting at Peter Thiel's office with Hoffman, Peter Thiel, Mark Sean, and Matt Kohler.
01:38:51.840 --> 01:38:52.079
Okay.
01:38:52.239 --> 01:38:54.640
And they tell them the 80% number.
01:38:54.800 --> 01:38:54.960
Yeah.
01:38:55.199 --> 01:38:57.199
And Matt's like, there's no way.
01:38:57.359 --> 01:38:58.800
You've got a system bug.
01:38:58.960 --> 01:39:00.159
Something's not working right.
01:39:00.319 --> 01:39:05.520
And so he's like, Mark, would you give me permission to get into your system and investigate it?
01:39:05.600 --> 01:39:05.760
Yeah.
01:39:05.840 --> 01:39:08.000
And Mark's like, yeah, like total transparency.
01:39:08.159 --> 01:39:09.279
Go in, do what you want.
01:39:09.439 --> 01:39:11.359
So he goes in and investigates it.
01:39:11.520 --> 01:39:14.720
And he's like, Holy shit, this is really coming up 80%.
01:39:15.119 --> 01:39:15.520
Yeah.
01:39:16.000 --> 01:39:19.039
And then he starts talking to the users.
01:39:19.119 --> 01:39:26.159
And what he finds out is that the users are telling him things about how addictive it is and how much they enjoy using it.
01:39:26.399 --> 01:39:35.039
And he found that the qualitative data he was pulling was even more impressive than the quantitative data that Mark and Sean were presenting to them.
01:39:35.359 --> 01:39:38.159
So he was sold, Thiel was sold, Pincus was sold.
01:39:38.239 --> 01:39:39.359
Everybody's on board, right?
01:39:39.520 --> 01:39:46.720
So Theel came on in August 2004 at$500,000 for 7% of the company.
01:39:46.960 --> 01:39:50.640
This investment valued the company now at$5 million.
01:39:51.119 --> 01:39:57.359
Hoffman and Pincus each agreed to invest$37,500 a piece.
01:39:57.520 --> 01:39:57.840
Okay.
01:39:58.000 --> 01:40:01.680
And then Matt Kohler, he did not put an investment in.
01:40:01.920 --> 01:40:16.239
He left his job at LinkedIn and he came on as Facebook's seventh hire and first external executive hire as the vice president of product management by February.
01:40:16.399 --> 01:40:17.760
He was on board as staff.
01:40:17.920 --> 01:40:24.800
We're going to take a small rabbit hole here so that we can address the investment prank story from the movie with the pajamas.
01:40:25.119 --> 01:40:25.439
Okay.
01:40:25.600 --> 01:40:29.359
After signing papers, Theel said to Mark, just don't fuck it up.
01:40:29.520 --> 01:40:32.319
Like literally sign, don't fuck it up.
01:40:32.479 --> 01:40:34.399
Well, what would he consider fucking it up?
01:40:34.479 --> 01:40:34.640
Yeah.
01:40:34.880 --> 01:40:35.600
Wirehog.
01:40:35.760 --> 01:40:37.920
You remember Wirehog from the beginning of this?
01:40:38.159 --> 01:40:40.079
That's why he went to California.
01:40:40.239 --> 01:40:46.319
As soon as Mark mentioned it to Theel, Pinkus, Hoffman, and Kohler, they were all screaming, hell no.
01:40:46.399 --> 01:40:46.560
Yeah.
01:40:46.800 --> 01:40:52.000
And Sean was all, I told him, I said it was too much like Napster and it's going to bite him in the ass.
01:40:52.159 --> 01:40:56.479
In fact, Sean had had many conversations with Mark and the team about it.
01:40:56.640 --> 01:40:59.840
He told him, first of all, Wirehog's a horrible name.
01:40:59.920 --> 01:41:01.359
You should name it Dropbox.
01:41:01.520 --> 01:41:01.840
Oh, wow.
01:41:02.000 --> 01:41:03.439
I'm just going to let that set in for a minute.
01:41:03.920 --> 01:41:08.000
But for some reason, they were like really sold on the name Wirehog.
01:41:08.399 --> 01:41:09.920
I don't, I don't know why.
01:41:10.159 --> 01:41:11.119
They were blood blanton.
01:41:11.439 --> 01:41:13.600
They really, they really liked Wirehog.
01:41:14.079 --> 01:41:26.640
There are stories that he, and I I can't validate this, but there are stories that Sean took Mark to some of his friends from the music industry and was like, tell them your idea about Wirehog.
01:41:28.000 --> 01:41:32.159
And he told he told the record industry guys what Wirehog was.
01:41:32.239 --> 01:41:34.239
And they were like, Yeah, you're gonna get sued.
01:41:34.319 --> 01:41:42.560
Yeah, you know, yet against everyone's advice, uh, he incorporated Wirehog and he launched it on Facebook in October.
01:41:42.720 --> 01:41:43.039
Wow.
01:41:43.279 --> 01:41:49.600
So in the movie and the book, Mark does that big FU meeting with a VC for Facebook.
01:41:49.680 --> 01:41:49.920
Uh-huh.
01:41:50.079 --> 01:41:52.399
And in the movie, it's Case Equity.
01:41:52.479 --> 01:42:11.359
In the book, it's Sequoia Capital, according to Stephen Levy, who actually interviewed Mark multiple times, even took trips with him over many years for interviews, like went with him to Africa for events, like to he's he's like about things.
01:42:11.600 --> 01:42:16.399
Yeah, like he's uh the senior editor of Wired, I want to say.
01:42:16.640 --> 01:42:16.880
Okay.
01:42:17.119 --> 01:42:23.760
So he's like had access to Mark Zuckerberg, where a lot of people do not have access to Mark Zuckerberg.
01:42:23.840 --> 01:42:26.640
And he actually has interviewed him in his book.
01:42:26.800 --> 01:42:31.439
He says that the pajama party was at Sequoia Capitol.
01:42:31.520 --> 01:42:43.279
It was in late November 2004, and it was directed towards Parker's Plaxo nemesist, Michael Moritz, whom you may remember got him fired from Plaxo.
01:42:43.359 --> 01:42:46.079
Yeah and it was all about Wirehog.
01:42:46.239 --> 01:42:46.880
Oh, really?
01:42:47.039 --> 01:42:47.359
Yes.
01:42:47.520 --> 01:42:57.119
In his PJs, Mark presented like a letterman's top 10 why you should not invest in Wirehog.
01:42:57.199 --> 01:42:57.359
Yeah.
01:42:57.600 --> 01:43:00.239
And we only have five of the top 10.
01:43:00.479 --> 01:43:02.720
Okay, but I'm going to share with you what they were.
01:43:02.960 --> 01:43:05.359
Number 10 was we have no revenue.
01:43:05.600 --> 01:43:09.199
Number nine was we'll probably get sued by the music industry.
01:43:09.359 --> 01:43:10.960
And then we've only got the top three.
01:43:11.119 --> 01:43:14.159
Number three was we showed up late in pajamas.
01:43:14.880 --> 01:43:17.680
Number two, Sean Parker is involved.
01:43:17.840 --> 01:43:18.000
Yeah.
01:43:18.239 --> 01:43:22.000
And number one, we're only here because a Sequoia partner told us to come.
01:43:22.159 --> 01:43:25.840
Years later, Zuckerberg said, I assume we really offended them.
01:43:25.920 --> 01:43:28.079
And now I really feel bad about that.
01:43:28.720 --> 01:43:30.880
So, you know, he learned, he learned.
01:43:31.039 --> 01:43:36.159
The Wirehog was eventually shut down and removed from the platform in January 2006.
01:43:36.239 --> 01:43:42.960
The cloud program we know as Dropbox was incorporated by another company in May 2007.
01:43:43.119 --> 01:43:45.439
So a little Zuck Productions.
01:43:45.600 --> 01:43:52.399
It's not a Zuck production, but Sequoia Capital was Dropbox's first VC.
01:43:52.560 --> 01:43:53.039
Oh wow.
01:43:53.119 --> 01:43:55.520
And Dropbox is now worth$10 billion.
01:43:56.079 --> 01:43:57.439
And Dropbox is everywhere.
01:43:57.600 --> 01:44:00.640
So Mark and the guys were definitely onto something.
01:44:00.720 --> 01:44:00.880
Yeah.
01:44:01.039 --> 01:44:06.640
You know, it just needed like some more rules and guidelines, which the Dropbox guys gave it.
01:44:07.119 --> 01:44:17.920
Sequoia Capital, remarkably, was also the sole early VC of WhatsApp, which, if you don't know, is part of the meta family now.
01:44:18.079 --> 01:44:24.079
Um, when they came on as a VC of WhatsApp, they carried a 40% stake.
01:44:24.239 --> 01:44:36.079
So when Zuckerberg wanted to buy WhatsApp in 2014, some speculate that he paid such a high price to buy it out because Sequoia Capital was still pissed about the wire hog prank.
01:44:36.159 --> 01:44:36.640
Oh, really?
01:44:36.960 --> 01:44:42.399
That they like bumped up the price because they were like, Yeah, remember that wire hog event?
01:44:42.560 --> 01:44:42.880
Wow.
01:44:43.119 --> 01:44:44.479
So back to our timeline.
01:44:44.720 --> 01:44:46.159
I wish I had that clout.
01:44:47.119 --> 01:44:49.840
Back to our timeline and the feel investment.
01:44:50.000 --> 01:45:01.520
After he signs, Mark takes advantage of Harvard, Harvard's liberal leave policy, which uh we hear about briefly when in the movie from um Microsoft.
01:45:01.600 --> 01:45:02.159
What's his name?
01:45:02.319 --> 01:45:02.720
Bill Gates.
01:45:02.960 --> 01:45:03.439
Bill Gates.
01:45:03.600 --> 01:45:06.239
He talks about the liberal leave policy in his speech.
01:45:06.399 --> 01:45:11.199
It is a real thing where like students can say, Hey, I have this opportunity, I'm gonna step away.
01:45:11.439 --> 01:45:11.920
I'm sorry.
01:45:12.079 --> 01:45:12.399
Yes.
01:45:12.560 --> 01:45:17.760
So yeah, that goes to the whole Veronica thing of you should pay or pay attention to what the teacher said.
01:45:18.079 --> 01:45:19.680
I wasn't listening to him at all.
01:45:19.840 --> 01:45:21.039
That's hilarious.
01:45:21.279 --> 01:45:23.920
Well, he does he does take advantage of it.
01:45:24.079 --> 01:45:29.920
Um, he takes the policy for fall and they get a new rental and they move into it.
01:45:31.680 --> 01:45:38.239
Listen, I'm in it, but your first job, if I'm gonna be a part of this, is to create a vesting schedule.
01:45:38.319 --> 01:45:41.199
And Mark's like, what the hell is a vesting schedule?
01:45:41.439 --> 01:45:44.000
He had no idea what it was, so he had to learn.
01:45:44.079 --> 01:45:50.880
Yeah, and when he does, he realizes it Dustin Muskowitz, who has been working his ass off.
01:45:50.960 --> 01:45:53.039
Yeah, he's taught himself to program.
01:45:53.199 --> 01:46:04.239
Uh he works into all hours of the night, he hardly sleeps, he does so much to keep the Facebook.com running that he has gained the nickname the ox.
01:46:04.560 --> 01:46:06.960
They don't call him Dustin, they call him the ox.
01:46:07.279 --> 01:46:10.560
He's realized that Dustin is highly undervalued.
01:46:10.640 --> 01:46:19.760
And Eduardo, who's been on the other side of the country not completing what he said he would at the start of the summer, yeah, was overvalued.
01:46:19.920 --> 01:46:27.920
So in an I Am With Dustin, he wrote, I maintain he fucked himself first by completing none of his three assigned tasks.
01:46:28.079 --> 01:46:32.159
He was supposed to set up the company, get funding, and make a business model.
01:46:32.319 --> 01:46:36.319
He failed at all three and took the offensive against me without leverage.
01:46:36.640 --> 01:46:37.920
That just means he's dumb.
01:46:38.000 --> 01:46:44.079
And now that I'm not going back to Harvard, I don't need to worry about getting beaten by Brazilian thugs.
01:46:46.000 --> 01:46:51.199
And really, Parker was making all of those things that Eduardo hadn't done.
01:46:51.279 --> 01:46:52.880
He was making all of those things happen.
01:46:53.039 --> 01:47:02.399
He found funding, he helped build the company, and Peter Thiel, who Parker brought in, helped Mark learn how to set the company up properly.
01:47:02.560 --> 01:47:10.800
The problem was that now Mark realized how little Eduardo had to offer, but he had no idea how to rid the company of him.
01:47:10.960 --> 01:47:11.199
Yeah.
01:47:11.359 --> 01:47:16.800
Well, Sean knew the answer to that too, or rather, he knew who did, Peter Thiel.
01:47:17.039 --> 01:47:19.119
So he told Mark, talked to Peter.
01:47:19.199 --> 01:47:19.359
Yeah.
01:47:19.600 --> 01:47:22.960
And through that, Peter kind of introduced Mark to this idea.
01:47:23.199 --> 01:47:31.920
Mark learned that he just needed to reduce Eduardo's share by distributing the new shares to everyone but Eduardo.
01:47:32.239 --> 01:47:45.439
So on October 31st, Eduardo signed his new shareholder agreement, allotting him three million shares of company stock in the new company and handing over all intellectual property and voting rights to Mark.
01:47:45.600 --> 01:47:48.079
This made Mark the sole director.
01:47:48.560 --> 01:47:54.960
So Parker has this friend, Ezra Callahan, and he's taking a gap year before law school.
01:47:55.199 --> 01:47:58.159
Parker invites him to come spend it working at Facebook.
01:47:58.319 --> 01:48:09.279
And for room and board,$30,000 a year and stock in the company, he's asked to create a business plan and basically fill in like where Eduardo has been lacking.
01:48:09.439 --> 01:48:11.359
He agrees and he does a good job.
01:48:11.520 --> 01:48:16.720
He comes on in December and he creates a successful business strategy.
01:48:16.880 --> 01:48:17.119
Yeah.
01:48:17.359 --> 01:48:25.199
Like within weeks, just weeks, he's bringing in thousands of dollars a day by early 2005.
01:48:25.439 --> 01:48:25.760
Nice.
01:48:25.920 --> 01:48:32.800
His gap year at Facebook lasted from December 2004 until July 2010.
01:48:32.960 --> 01:48:34.000
It was a good gap year.
01:48:34.159 --> 01:48:34.399
Yeah.
01:48:34.640 --> 01:48:41.840
On January 7th, 2005, Facebook issued 9 million shares of common stock in the new company.
01:48:42.000 --> 01:48:48.640
3.3 million went to Mark, 2 million went to Sean, and 2 million went to Dustin.
01:48:48.800 --> 01:48:54.960
This instantly diluted Eduardo's stake from about 24 to less than 10%.
01:48:55.760 --> 01:49:00.319
We know things have been like rough between Mark and Eduardo since Mark got to Cali.
01:49:00.560 --> 01:49:08.720
Eduardo wasn't pulling his weights and he literally stood in the way of funding just because he was butthurt that Sean was the one who brought it in.
01:49:08.880 --> 01:49:10.640
And it had been pissing Mark off.
01:49:10.800 --> 01:49:18.720
But now it's more than that because while he hasn't been working on his Facebook responsibilities back at Harvard, he's launched Job Boozle.
01:49:18.880 --> 01:49:19.119
Yeah.
01:49:19.279 --> 01:49:21.119
It went live on February 4th.
01:49:21.279 --> 01:49:27.840
And he started running unpaid, unauthorized ads for Job Boozle on Facebook.
01:49:28.000 --> 01:49:28.319
Wow.
01:49:28.479 --> 01:49:28.800
Uh-huh.
01:49:28.960 --> 01:49:30.239
On February 7th.
01:49:30.399 --> 01:49:31.840
He did not tell anybody.
01:49:32.079 --> 01:49:33.680
Well, how would that even go through?
01:49:33.920 --> 01:49:39.760
Because he got on as the CFO who has all of his sign-on information.
01:49:40.000 --> 01:49:40.239
Gotcha.
01:49:40.479 --> 01:49:47.920
And put all of his banner ads up, like obnoxiously in all of the banner ad positions everywhere on Facebook.
01:49:48.159 --> 01:49:59.760
Additionally, in every news article that I could find about Jabuozal, like announcing that it had been made, every press release, every interview by anybody who's involved with it.
01:50:00.000 --> 01:50:04.399
Job Boozle is being sold as quote created by the co-founder of Facebook.
01:50:04.560 --> 01:50:17.920
And while the reporters are quick to clear up that it's not a Facebook production, they do consistently comment on how familiar the look, feel, use, and infrastructure of the new platform is.
01:50:18.159 --> 01:50:26.880
So without anybody saying it outright, silently, like it really sounds like they're saying they took Facebook's infrastructure and just renamed it.
01:50:26.960 --> 01:50:29.600
Like Jabuozle is Facebook with a new name.
01:50:29.760 --> 01:50:40.720
Now I want to point out that Ben Wardo says he didn't do anything with Jabuozol until he went back to school and he had lots of extra time that Mark had given him to focus on himself.
01:50:41.119 --> 01:50:43.680
But the documentation is the proof in the pudding.
01:50:43.760 --> 01:50:44.079
Okay.
01:50:44.239 --> 01:50:54.399
He was already talking about Jabuozul with students from other universities way back in April before he went to New York City, before Mark went to California.
01:50:54.800 --> 01:50:55.439
2004.
01:50:56.000 --> 01:51:05.199
When it launched in February 2005, it went live to the first 14 schools that Facebook did all on the same day.
01:51:05.359 --> 01:51:05.920
Oh wow.
01:51:06.640 --> 01:51:09.039
So it feels very targeted.
01:51:09.199 --> 01:51:10.399
Yeah, very intentional.
01:51:10.720 --> 01:51:12.000
Very intentional marketing.
01:51:12.159 --> 01:51:21.199
An email from Zuckerberg to Eduardo at the time reads You developed job boozle, knowing that at some point Facebook would probably want to do something with jobs.
01:51:21.359 --> 01:51:28.880
This was pretty surprising to us because you basically made something on the side that will end up competing with Facebook, and that's pretty bad by itself.
01:51:29.039 --> 01:51:33.840
But putting ads up on Facebook to advertise it, especially for free, is just mean.
01:51:34.000 --> 01:51:36.560
Eduardo's corporate email was closed.
01:51:36.720 --> 01:51:41.600
His duties as CFO were revoked, and he was cut off from the operational team.
01:51:41.760 --> 01:51:43.680
They did that on January 7th.
01:51:43.840 --> 01:51:44.079
Okay.
01:51:44.239 --> 01:51:50.640
So he was like, I need I need to clarify this because this was where I was like, wait a minute, that doesn't make any sense.
01:51:50.800 --> 01:51:54.399
So they had already closed out his Facebook email.
01:51:54.479 --> 01:51:58.239
They had given all of his duties as CFO to someone else.
01:51:58.399 --> 01:51:58.720
Yeah.
01:51:58.960 --> 01:52:03.039
And they had taken him off of the operational team on January 7th.
01:52:03.119 --> 01:52:05.760
He wasn't listed anywhere on the website for 2005.
01:52:06.000 --> 01:52:06.239
Uh-huh.
01:52:06.319 --> 01:52:06.479
Okay.
01:52:06.720 --> 01:52:10.079
And then February 4th, he launches Jaboozle.
01:52:10.239 --> 01:52:19.279
February 7th, because his username stuff for Facebook.com is or for the Facebook.com is still operational.
01:52:19.680 --> 01:52:22.159
He gets in there and launches all of these ads.
01:52:22.399 --> 01:52:24.800
Well, they didn't do anything with that security stuff.
01:52:25.199 --> 01:52:39.840
So according to like what they've done, like in layman's terms, if my email where I work had been shut down, I like and all I had been removed from our website in layman's terms, like I would be fired.
01:52:40.159 --> 01:52:42.079
Like I would just be like, oh, I got fired today.
01:52:42.159 --> 01:52:42.319
Yes.
01:52:42.479 --> 01:52:43.119
You know what I mean?
01:52:43.279 --> 01:52:48.960
But Business Insider reports that Eduardo didn't notice any of that had happened until April.
01:52:49.199 --> 01:52:51.199
Which means he wasn't checking the emails.
01:52:51.760 --> 01:52:53.840
It means he wasn't checking anything.
01:52:54.079 --> 01:53:02.960
So, and the only reason why he noticed was because they sent him a letter in April that detailed the dilution of his shares.
01:53:03.199 --> 01:53:03.760
Oh, yeah.
01:53:03.920 --> 01:53:07.119
And by that point, it was down to a fraction of a percent.
01:53:07.279 --> 01:53:14.399
So then 15 days after he received his letter, Facebook offices received a letter from Eduardo's lawyers.
01:53:14.560 --> 01:53:16.239
The lawsuits came next.
01:53:16.560 --> 01:53:20.560
Job Boozle lasted less than a year before it shut down.
01:53:20.720 --> 01:53:23.199
Not because of Facebook, just because nobody used it.
01:53:23.439 --> 01:53:28.079
Um, Facebook has since launched a job board twice.
01:53:28.239 --> 01:53:29.920
It just so everyone knows.
01:53:30.159 --> 01:53:41.439
The first one launched in 2017, it went until 2023, then it came down, and then it relaunched directly into marketplace in October 25, where it still lives today.
01:53:41.600 --> 01:53:48.319
Facebook filed a suit against Eduardo saying that the stock purchase agreements from October were invalid.
01:53:48.640 --> 01:53:53.439
Eduardo responded by suing Mark for spending his money on personal expenses.
01:53:53.680 --> 01:53:58.880
He then approached Ben Meserich and offered him the inside scoop on Facebook's start.
01:53:59.039 --> 01:54:12.880
But in 2009, Eduardo and Mark settled, and part of the settlement was that Eduardo stopped talking to the press about all things Facebook and Mark Zuckerberg, including the lawsuit, which meant he stopped working on Ben's book.
01:54:13.119 --> 01:54:15.840
Really, though, by that point, the research was done.
01:54:15.920 --> 01:54:16.079
Yeah.
01:54:16.319 --> 01:54:20.399
So Ben had what he needed from Eduardo, and Eduardo knew it.
01:54:20.800 --> 01:54:21.600
Got his story out.
01:54:21.760 --> 01:54:23.680
So he got to have his cake and eat it too.
01:54:23.920 --> 01:54:25.439
Uh he settled with Mark.
01:54:25.600 --> 01:54:29.680
His name was reestablished on the website as a co-founder permanently.
01:54:29.840 --> 01:54:34.560
Um, he received an estimated four to five percent of stock in the company.
01:54:34.640 --> 01:54:39.600
We don't know the exact number because he's never said it because his NDA says that he can't.
01:54:39.760 --> 01:54:45.920
And when they went public in 2012, that was estimated to be worth approximately$2 billion.
01:54:46.319 --> 01:54:46.720
Wow.
01:54:46.960 --> 01:54:53.199
By the time, or by the way, he renounced his US citizenship before they went public.
01:54:53.359 --> 01:54:53.840
Oh, really?
01:54:54.079 --> 01:54:55.199
And moved to Singapore.
01:54:55.600 --> 01:55:00.960
So he saved tons of money on taxes and capital gains, which they do not have in Singapore.
01:55:01.520 --> 01:55:09.760
In May of this year, he was estimated to be, or his uh his stake in Facebook was estimated to be worth$33.2 billion.
01:55:10.399 --> 01:55:21.199
He is the 68th richest person in the world, the wealthiest person in Singapore, the third richest person from Latin America, and the wealthiest Brazilian.
01:55:21.359 --> 01:55:34.479
But the medium estimated last year that if he had kept his original 30% in the company in 2025, he would have been worth$450 billion more than Musk or Bezos.
01:55:34.640 --> 01:55:36.079
A lot of freaking money.
01:55:36.319 --> 01:55:36.880
That's crazy.
01:55:37.039 --> 01:55:37.359
Yes.
01:55:37.520 --> 01:55:46.960
Today he's the co-founder and co-CEO of a VC called B Capital, but he makes the most money from his stock in Facebook and Meta.
01:55:47.039 --> 01:55:59.680
As for Zuckerberg and Parker outside of Eduardo, in March 2005, Parker uh secured a second floor office in Palo Alto for the Facebook offices.
01:55:59.840 --> 01:56:05.439
They had more than a million users, but the money was running out again from the Thiel investments.
01:56:05.520 --> 01:56:06.800
So they needed new investors.
01:56:06.960 --> 01:56:08.960
Mark wanted to go with Don Graham.
01:56:09.119 --> 01:56:16.079
I tell this story because I think it's really interesting, and it comes from someone who's like outside of the mains.
01:56:16.319 --> 01:56:18.239
Like it's just really interesting.
01:56:18.399 --> 01:56:21.199
It's an interesting counter to everything we've heard so far.
01:56:21.279 --> 01:56:21.600
Okay.
01:56:21.760 --> 01:56:23.920
They needed new investors, new investors.
01:56:24.000 --> 01:56:31.039
So Mark wanted to go with Don Graham from the Washington Post, which was mentioned in the Benuardo saga.
01:56:31.439 --> 01:56:36.319
And he had actually made like a verbal gentleman's agreement with Graham about it.
01:56:36.479 --> 01:56:42.239
They hadn't sat down and signed papers, but they like had talked about it, and Graham was set to come on board.
01:56:42.479 --> 01:56:42.720
Okay.
01:56:42.960 --> 01:56:49.439
Polar wanted them to go with the VC XL because they were offering way more money.
01:56:49.600 --> 01:56:53.600
So he set up a dinner with Jim Breyer from Excel.
01:56:54.000 --> 01:56:56.800
And they went, he and Mark went to go meet with him.
01:56:56.960 --> 01:57:00.720
And he said that like Mark just looked like sick to his stomach the whole time.
01:57:00.800 --> 01:57:02.560
Like he was totally uncomfortable.
01:57:02.800 --> 01:57:07.760
And finally, some at one point in the dinner, he excused himself to go to the bathroom.
01:57:07.840 --> 01:57:09.600
But then he like never came back to the table.
01:57:09.680 --> 01:57:11.760
And Kohler was like, Where the hell did he go?
01:57:11.920 --> 01:57:13.600
So he gets up to go look for him.
01:57:13.760 --> 01:57:19.359
He goes into the bathroom and he said he found Mark weeping in the bathroom floor.
01:57:19.520 --> 01:57:21.840
He's in the bathroom floor weeping.
01:57:21.920 --> 01:57:24.960
And he's like, Mark, what is going on?
01:57:25.119 --> 01:57:26.079
What is wrong?
01:57:26.319 --> 01:57:32.880
And he said that Mark was weeping because he said that the deal was wrong, that the whole deal with Excel was wrong.
01:57:33.039 --> 01:57:36.800
He said, I gave my word to Don Graham and that's all that matters.
01:57:37.119 --> 01:57:40.079
So Kohler said, Listen, go talk to Graham.
01:57:40.239 --> 01:57:41.600
Tell him what is going on.
01:57:41.680 --> 01:57:44.159
Tell him what Excel is offered and ask him.
01:57:44.319 --> 01:57:47.600
Just tell him what he tell him what it is and see what he says.
01:57:47.840 --> 01:57:50.159
He was like, You don't have to make a decision tonight.
01:57:50.239 --> 01:57:51.199
Just go talk to Graham.
01:57:51.279 --> 01:57:55.359
So Mark tells Graham everything and tells him how much Excel has offered.
01:57:55.439 --> 01:57:55.600
Yeah.
01:57:55.760 --> 01:57:58.800
And Graham's like, they're offering so much money.
01:57:58.960 --> 01:58:04.319
Like, I see how torn up you are about this, but but like that's an amazing offer.
01:58:04.479 --> 01:58:08.239
And Graham says, I release you from your moral dilemma.
01:58:08.399 --> 01:58:09.359
Go with Excel.
01:58:09.520 --> 01:58:11.199
So he went with Excel.
01:58:11.439 --> 01:58:15.600
And Graham later came on board as a Facebook board member.
01:58:15.680 --> 01:58:15.920
Yeah.
01:58:16.159 --> 01:58:19.119
So he still gets to work with him, you know, got to work with him.
01:58:19.279 --> 01:58:24.720
But the Excel money was used to buy Facebook.com from the owner.
01:58:24.800 --> 01:58:26.079
So they officially got it.
01:58:26.239 --> 01:58:28.880
They had to pay$200,000 to get the domain.
01:58:28.960 --> 01:58:30.319
They dropped the$200,000.
01:58:30.560 --> 01:58:30.720
Yep.
01:58:30.880 --> 01:58:31.760
Like jump change.
01:58:31.920 --> 01:58:32.319
Yes.
01:58:32.640 --> 01:58:37.760
And they hired more computer science people to scale Facebook to size.
01:58:37.840 --> 01:58:50.479
Um, October or on uh August 27th, 2005, Sean Parker was in North Carolina for vacation with some friends and a college-aged Facebook employee that he was dating.
01:58:50.640 --> 01:58:54.640
Business Insider reported that she was his assistant and not yet 21.
01:58:54.800 --> 01:58:56.079
You may see where this is going.
01:58:56.239 --> 01:59:02.159
This is how David Kirkpatrick reported the story in his book, The Facebook Effect, which I've not read.
01:59:02.319 --> 01:59:05.279
I got this expert excerpt from Business Insider.
01:59:05.520 --> 01:59:12.319
Um, allegedly, what I have read is that David Kirkpatrick did interview Mark for this book.
01:59:12.399 --> 01:59:16.880
And this book was being written at the same time that Benuardo's book was being written.
01:59:17.039 --> 01:59:19.359
I just I just couldn't do another, like I just couldn't.
01:59:19.760 --> 01:59:28.159
The Facebook event says that they had a party a few nights before, like Parker, his assistant, and their friends.
01:59:28.319 --> 01:59:28.640
Okay.
01:59:29.039 --> 01:59:31.680
And this party like got out of control.
01:59:31.840 --> 01:59:34.800
This is a few nights before August 27th.
01:59:35.119 --> 01:59:36.640
All of these locals show up.
01:59:36.800 --> 01:59:43.119
So many people show up that the party leaves the beach house, like it spills over onto the beach.
01:59:43.520 --> 01:59:44.239
Huge party.
01:59:44.479 --> 01:59:48.319
Two nights later, it's their their final night in North Carolina.
01:59:48.479 --> 01:59:58.640
They have like one last small gathering with the instructors that had taught them to like kite sail or kite surf or whatever they were doing.
01:59:58.800 --> 02:00:03.439
Um, and they're sitting around in the house, they're drinking beer and they're just talking.
02:00:03.680 --> 02:00:12.079
And the story is that a group of cops like bust in with drug-sniffing dogs and a warrant.
02:00:12.319 --> 02:00:21.039
And they had received reports that at the party two nights before, there had been a ton of drugs in the house.
02:00:21.520 --> 02:00:37.119
And so they spend an hour searching the house with these dogs, and they leave the house with a plastic bag with white powder and Sean Parker, because Sean Parker's name is on the rental lease for the vacation rental.
02:00:37.279 --> 02:00:39.600
So he is the one who's held responsible.
02:00:39.840 --> 02:00:45.279
Not because the bag is in his stuff or in his room, but because his name is on the rental lease.
02:00:45.920 --> 02:00:52.079
Additionally, there is never any confirmation that the white powder in the bag is drugs.
02:00:52.159 --> 02:00:53.439
So I need to say that right now.
02:00:53.600 --> 02:00:54.000
Gotcha.
02:00:54.159 --> 02:00:59.600
But when he's taken in, they take him in for felony possession of cocaine.
02:00:59.760 --> 02:01:03.920
However, he's never charged with a crime and is released immediately.
02:01:04.079 --> 02:01:04.319
Wow.
02:01:04.479 --> 02:01:04.800
Okay.
02:01:04.960 --> 02:01:08.159
So he calls Mark, but Mark's like, there are no charges.
02:01:08.319 --> 02:01:09.119
I'm not concerned.
02:01:09.279 --> 02:01:11.760
Like, thanks for letting me know, but it's not a big deal.
02:01:11.840 --> 02:01:11.920
Yeah.
02:01:12.079 --> 02:01:12.800
Like, there's no problem.
02:01:12.960 --> 02:01:13.279
We're good.
02:01:13.439 --> 02:01:17.279
But Jim Breyer from Excel is losing his shit.
02:01:17.359 --> 02:01:18.720
He's completely freaking out.
02:01:18.800 --> 02:01:22.560
And then Michael Moritz, remember him from Sequoia?
02:01:22.720 --> 02:01:22.800
Yeah.
02:01:22.960 --> 02:01:23.199
Yeah.
02:01:23.359 --> 02:01:24.640
He's friends with Jim Breyer.
02:01:24.800 --> 02:01:29.439
And he's like, Jim, you know what else happened with Sean once upon a time?
02:01:29.600 --> 02:01:33.199
We got him kicked out of Paxel or Pa Palax.
02:01:33.439 --> 02:01:33.680
Pax.
02:01:34.000 --> 02:01:34.720
What is it?
02:01:34.880 --> 02:01:35.119
Pax.
02:01:37.439 --> 02:01:38.079
Plaxo.
02:01:38.159 --> 02:01:38.800
Plaxo.
02:01:38.880 --> 02:01:39.439
That's what it is.
02:01:39.760 --> 02:01:40.960
Had to do with dental stuff.
02:01:41.199 --> 02:01:42.720
Dental, that dental thing.
02:01:42.960 --> 02:01:46.479
You know, he got in Ben uh Jim Breyer's ear.
02:01:46.640 --> 02:01:49.680
Sean didn't want to go, and Mark didn't want to fire him.
02:01:49.760 --> 02:01:57.439
But the powers that be convinced both of them that it was best for the company's image for Sean to go his own way.
02:01:57.520 --> 02:01:57.680
Yeah.
02:01:57.920 --> 02:02:02.399
So he kept his percentage of shares, but he stopped taking a salary.
02:02:02.560 --> 02:02:05.199
He kind of stayed on with Mark as an advisor.
02:02:05.359 --> 02:02:05.520
Yeah.
02:02:05.680 --> 02:02:12.960
Like he, you know, he still had a say in stuff, but he wasn't like showing up to work or showing up to be a president or anything like that.
02:02:13.359 --> 02:02:15.439
Later, Joe Green, remember him?
02:02:15.600 --> 02:02:18.880
The guy whose dad was like, no more Zuckerberg productions for you.
02:02:18.960 --> 02:02:19.279
Yeah.
02:02:19.600 --> 02:02:27.119
He became Parker's partner in a Facebook application called Causes, which helps people donate to nonprofits.
02:02:27.359 --> 02:02:28.000
Hey, nice.
02:02:28.159 --> 02:02:28.399
Yeah.
02:02:28.640 --> 02:02:34.560
Parker later invested in Spotify in 2010 and he served on the board until 2017.
02:02:34.800 --> 02:02:35.039
Wow.
02:02:35.199 --> 02:02:48.239
He has been a VC, a tech entrepreneur, and a philanthrop philanthropist, I can talk, launching the Parker Foundation in 2015 with money for science, global health, and civic engagement.
02:02:48.319 --> 02:02:53.359
And the next year, establishing the Parker Institute for Cancer Immunotherapy.
02:02:53.600 --> 02:02:55.359
He also has the Sean N.
02:02:55.520 --> 02:02:58.720
Parker Center for Allergy Research at Stanford.
02:02:58.880 --> 02:03:09.920
In 2018, he said of his change in career focus to sciences quote, you're spending a lot of time trying to make your products as addictive as possible in regards to like social media stuff.
02:03:10.479 --> 02:03:18.960
Transitioning to life sciences is incredibly refreshing because you really feel as though the energy and time you're putting into it are helping people.
02:03:19.119 --> 02:03:23.439
It's about saving lives, really changing people's lives, advancing medicine.
02:03:23.600 --> 02:03:28.319
It feels somewhat unsatisfying to constantly make products for teenage girls.
02:03:28.479 --> 02:03:33.039
You worry about what this effect may be having on their development and on society.
02:03:33.199 --> 02:03:42.640
I don't know how much he still aligns with those views, though, because in 2024 he became executive chairman of Generative AI Startup Stability AI.
02:03:43.279 --> 02:03:47.600
As of August, Forbes says he's worth$3.4 billion.
02:03:48.319 --> 02:03:49.840
So he's not hurting.
02:03:49.920 --> 02:03:50.079
Oh.
02:03:50.479 --> 02:03:52.880
And all of that on a high school diploma.
02:03:53.119 --> 02:03:53.600
Pretty good.
02:03:53.760 --> 02:03:54.479
Pretty impressive.
02:03:54.720 --> 02:03:54.960
Yep.
02:03:55.119 --> 02:03:58.399
As for Mark, we're gonna save that story because Mr.
02:03:58.560 --> 02:04:07.760
Aaron Sorkin has a new movie coming out this fall called The Social Reckoning, uh, which covers the 2021 Facebook leak by whistleblower Francis.
02:04:07.920 --> 02:04:08.560
Can't say her name.
02:04:08.720 --> 02:04:10.479
Hogan Howen.
02:04:10.720 --> 02:04:14.720
That's we will be covering that movie and uh how to say her name.
02:04:14.880 --> 02:04:18.960
We'll be diving back into what he's been up to since settling these suits.
02:04:19.039 --> 02:04:21.760
So we're gonna be paying theater tickets to go see it.
02:04:21.920 --> 02:04:22.479
Yes, we will.
02:04:22.640 --> 02:04:24.159
But we will not be video recording.
02:04:24.560 --> 02:04:26.079
No, we will not, because we cannot do that.
02:04:26.399 --> 02:04:29.600
Um, I do want to touch on a couple of small things before we go.
02:04:29.760 --> 02:04:39.439
I know this is very long, but in 2006, open registration was the Facebook message or mission moving off of like campus and into the wider world.
02:04:39.520 --> 02:04:42.880
Yeah, they started by targeting high schools and then workplaces.
02:04:43.039 --> 02:04:51.199
And in the last months of 2006, they went from less than 10,000 registrations a day to 60 to 80,000 a day.
02:04:51.359 --> 02:04:52.640
That's that's a jump.
02:04:52.880 --> 02:04:56.720
Another change that came during this time, Mark's communication.
02:04:56.960 --> 02:05:03.920
During the lawsuits, the lawyers identified Mark's notebooks where he like he had these um diaries.
02:05:04.079 --> 02:05:08.880
Yeah, he had these diaries that he like carried around with him everywhere and he kept them.
02:05:09.039 --> 02:05:16.159
Everything from like high school and college, and he had all of them where he wrote down all of his ideas, all of his thoughts, everything.
02:05:16.319 --> 02:05:22.399
He identified them as potential liability and evidence for future IP litigations.
02:05:22.560 --> 02:05:29.119
And it had been such a nightmare for him in these like first suits that he destroyed all of them.
02:05:29.279 --> 02:05:29.439
Wow.
02:05:29.600 --> 02:05:35.520
There's like one little piece of one that still exists, and Stephen Levy got to see it and he took pictures of it.
02:05:35.680 --> 02:05:38.319
He told Mark, like, you know, yeah, I saw it, I have pictures.
02:05:38.399 --> 02:05:40.159
And Mark was like, You have pictures of it?
02:05:40.319 --> 02:05:40.960
Can I see it?
02:05:41.119 --> 02:05:44.640
Yeah, and he said that Mark looked at it and was just like, Oh my gosh.
02:05:44.960 --> 02:05:46.000
So like nostalgia.
02:05:46.239 --> 02:05:47.359
Yeah, that's crazy.
02:05:47.520 --> 02:05:50.000
Um, but he destroyed all of his notebooks.
02:05:50.239 --> 02:06:06.960
And then after Business Insider got a hold of and released all of his old Harvard chats, yeah, Mark made sure that all of his current Facebook chats and Instagram chats were scrubbed disappear immediately.
02:06:07.199 --> 02:06:08.800
They're set to never save.
02:06:08.960 --> 02:06:17.359
He, like Sean, is now known to be a little paranoid about capturing his own thoughts and reluctant to archive his personal thoughts.
02:06:17.520 --> 02:06:26.319
And his previous chats that had been saved in, like any of the messengers or anything with people, when they made this decision, they were all removed.
02:06:26.399 --> 02:06:31.279
So, like everybody's messages with him just looked like a one-side rant with himself.
02:06:31.439 --> 02:06:36.640
And there was just a message that said Facebook was limiting the retention period of Mark's messages.
02:06:36.800 --> 02:06:46.079
Mark chalked his Harvard chats up to immaturity and he said he regretted them, but he also said that they were often taken out of context to not reveal his true feelings.
02:06:46.239 --> 02:07:04.399
In a message to Stephen Levy, he wrote, I got so frustrated that old instant messages and emails from when I was a kid kept getting surfaced out of context and making jokes or small off-handed comments seem like reflections on my core personality or values that I've just decided to stop storing my older stuff.
02:07:04.560 --> 02:07:12.399
In later interviews, he said, Would you want every joke you ever made to someone being printed and taken out of contact context later?
02:07:12.640 --> 02:07:15.119
And I think that's a good note for us to leave on.
02:07:15.279 --> 02:07:22.800
A lot of opinions of people in this digital world world today are based on like little blips of someone's lives.
02:07:22.880 --> 02:07:23.119
Yeah.
02:07:23.439 --> 02:07:42.720
The canceled culture or the cancel culture is rampant and it can completely destroy someone's life, even just from like one single comment taken out of context and twisted, especially with AI, even just things they didn't really say or do, but made to look like they say or did.
02:07:42.880 --> 02:07:47.119
And I'm not saying that people shouldn't be held accountable for what they say and do.
02:07:47.279 --> 02:07:49.680
I think, you know, well, they need to be put in context.
02:07:49.760 --> 02:07:49.920
Yes.
02:07:50.159 --> 02:07:50.880
So what was this?
02:07:50.960 --> 02:07:51.279
Yeah.
02:07:51.520 --> 02:08:02.079
Um, I think we, you know, you should be held accountable for your actions and for what you say, but maybe also we could all use a little bit more grace.
02:08:02.159 --> 02:08:02.399
Yeah.
02:08:02.560 --> 02:08:11.439
You know, and with that, we hope that you'll join us next time when we watch The Black Dahlia, a true crime caper.
02:08:11.600 --> 02:08:13.199
Until then, what should they do?
02:08:13.439 --> 02:08:15.600
Like, subscribe, share, follow.
02:08:15.760 --> 02:08:17.279
I know some of those are synonyms.
02:08:17.520 --> 02:08:17.920
Comment.
02:08:18.079 --> 02:08:21.359
We would love to hear your guys' thoughts on some of this episodes.
02:08:21.520 --> 02:08:22.880
We've started putting up reels.
02:08:23.279 --> 02:08:24.560
Matt is making reels.
02:08:24.720 --> 02:08:29.199
Yeah, I'm not a professional, so I apologize for whatever I have out there.
02:08:29.279 --> 02:08:32.880
But follow those things, like those, share those, comment on those.
02:08:33.039 --> 02:08:42.079
If there's ideas that you guys want to see us do on an episode or talk about, or maybe something that we missed or whatever, send us uh a thing in the chat or something like that.
02:08:42.159 --> 02:08:52.640
Uh we also have an email stories at ReelTwisty.com that you can send uh ideas or just hey, just give give us a a shout out or something like that, or or or whatever.
02:08:52.720 --> 02:08:56.960
So we're on all all the platforms that I can think of.
02:08:57.279 --> 02:09:00.000
We're we're on every everything that I know of.
02:09:00.239 --> 02:09:19.279
So we're on Spotify, we're on YouTube, we're on Apple, we're on We're on all we're on all of the platforms for podcasts, for podcasts, and when it comes to social media, we've got Instagram, Facebook, TikTok, threads, blue sky, blue sky, that might be it.
02:09:19.520 --> 02:09:20.800
Did you say Facebook?
02:09:21.039 --> 02:09:21.680
Yes.
02:09:22.560 --> 02:09:23.439
We're on Facebook.
02:09:23.680 --> 02:09:24.239
We're on Facebook.
02:09:26.239 --> 02:09:32.720
So from us and David the editor, thanks for unraveling today's real twisty story with us.
02:09:32.960 --> 02:09:35.199
We will hopefully see you next time.