4 ms·
I'm not sure where the (80%) comes from, but investors will only lose value if the total value of Facebook declines. If it turns out that Ceglia and Zuckerberg
by rockfile4 16y ago
I'm not sure where the (80%) comes from, but investors will only lose value if the total value of Facebook declines.
If it turns out that Ceglia and Zuckerberg each owned 50% of Facebook in 2003, their ownership would each be diluted down in subsequent rounds of financing (from the "Investors").
So if the equity capitalization before this lawsuit is assumed to be "Investors" - 40% and Zuckerberg - 60% (an example), the new capitalization if Ceglia wins would be Investors 40%, Zuckerberg 30% and Ceglia 30%.
No impact on "Investors" ownership.
- infinite8s 16y agoExcept future rounds of capitalization might be invalid since Zuckerberg didn't have the legal right to dilute the shares he didn't own.
- deleted 16y ago[deleted]
- charleyrock 16y agoFirst, that comment is so vague that it doesn't mean much and second, who in their right mind would want those rounds of financing to be invalid? This case is irrelevant - it will either be dismissed or settled and will have ZERO impact on valuation or otherwise on existing investors.