The Social Network: Great movie, bad math

Eduardo Saverin begins owning approximately 1/3 of Facebook shares, but ends up owning approximately 1/27 after signing his "own death certificate" by allowing for the eventual issuance of 24 million new shares. He characterizes this ownership dramatically as "point zero three percent" (.03%).

In actuality this is roughly 3% after dilution. Yes, 1/27 = ~.03 (the likely source of the number in the movie), but expressed as a percentage this is ~3%, not .03%.

Original ownership: 1,328,334 / 3,861,436 (34.4%)
Diluted ("you issued 24-million shares..."): 1,328,334 / 27,861,436 (4.7%)

Below is the script from three different scenes in the movie. By combining scenes from various points in the movie, you get the math above:


Concatenated script of "The Social Network"

13 comments:

  1. Thanks for a very interesting blog. What else may I get that kind of info written in such a perfect approach? I’ve a undertaking that I am simply now operating on, and I have been at the look out for such info. hdfilme.cc

    ReplyDelete
  2. This comment has been removed by the author.

    ReplyDelete
  3. I am very enjoyed for this blog. Its an informative topic. It help me very much to solve some problems. Its opportunity are so fantastic and working style so speedy. smm panel

    ReplyDelete
  4. Wow, this is really interesting reading. I am glad I found this and got to read it. Great job on this content. I like it. Online Game

    ReplyDelete
  5. I would like to thank you for the efforts you have made in writing this article. I am hoping the same best work from you in the future as well. Thanks... Mobile Games

    ReplyDelete
  6. Thanks for sharing this quality information with us. I really enjoyed reading. Will surely going to share this URL with my friends.

    ReplyDelete
  7. Thank you for taking the time to publish this information very useful! bookmetoday.com

    ReplyDelete
  8. I don’t really understand how his percentage went down so much and the whole “diluted” thing while Mark Zuckerberg still had a large percentage of shares. Can someone please enlighten me on the situation?

    ReplyDelete
  9. Are you looking for SMM Panel provider? You are in the right place just go through the SMM Today which provides quality and cheap services. Thanks.

    ReplyDelete
  10. Buy IG Followers,Buy Instagram Followers cheap,buy instagram
    followers cheap,buy real instagram followers,buy facebook likes,buy instagram
    followers and likes
    if you are looking for the best SMM panel online? Want to buy Instagram followers? Check
    out our website and learn more about how you can increase your followers today

    ReplyDelete
  11. We add new presentation designs bi-weekly! This month, we added a variety of widescreen
    PowerPoint templates focused on 2021, business concepts and abstract animated designs.
    presentation templates

    ReplyDelete