There was an argument between Eduardo Saverin and Zuckerberg with monetizing Facebook or leaving it as a public service as they stated “keeping Facebook cool”. Monetizing Facebook by launching advertisement was brought to Zuckerberg’s attention but knew that this would only hurt the company in the long run. If they were going to advertise through Facebook they would lose the “cool” out of the idea of Facebooking and hurt its popular reputation. Without advertisement at this early time for the company, they kept the name what it was known for and the status it had of being the new cool thing. They made the decision that when the company grows, they will add on advertisement.
Zuckerberg’s Treatment of Competing Firm
Zuckerberg’s treatment overall was not fair especially towards his best friend, Eduardo. He showed more interest towards Sean Parker, founder of Napster, than his best friend who helped him launch this Facebook idea. Not only did I feel he was unfair to Eduardo but also to the Winklevoss’s. Two brothers received unfair treatment because Zuckerberg agreed to their idea and made sure he used every excuse to not meet up with them. In terms of being ethical, I believe Zuckerberg is an ethical person because he never stole anyone’s idea. He took what Winklevoss’s said and made something big and beyond what they would ever have thought of. It was not fair to them the way Zuckerberg kept leading them on but ethical in the sense that he didn’t steal their idea.
The Role of the Venture Capital Firm
The Venture Capital provides creative companies with high potential, an early stage to grow a company, and expand to a successful outcome. For this company, the deal they ended up with Zuckerberg owning 51%, Saverin owned 34.4%, Mozkovitz owned 6.81%, Sean Parker owned 6.47%, and Peter Thiel owned 7%. However, Saverin did not know if a new investor came into the management team, his percent decreases. I would have taken the money that they offered because this capital firm is helping a small new creation become something worth billions to expand and reach its highest peak. This is the way to sell the site and selling the creative and marketing control too.
One Aspect of Business
Social Network shows many business roles throughout the whole movie which taught me a lot. The biggest business aspect I learned was to never trust anyone in the business industry. This movie made me realize that with a brilliant million dollar idea that is just said from two outspoken brothers or a small argument between a CEO and CFO can ruin a life. Zuckerberg and Saverin who is his best friend and who helped him launch Facebook got in an argument. Through anger Saverin froze the bank…