Tag Archives: ConnectU
Facebook CEO Mark Zuckerberg Being Accused Of Security Fraud By ConnectU Founders
Tyler and Cameron Winklevoss are back in the news again. The two twin brothers along with the other ConnectU Divya Narendra are accusing Mark Zuckerberg of securities fraud. The ConnectU founders believe that Zuckerberg and Facebook tricked them into settling for $65 million, but the deal was actually worth far less than expected.
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Categories Cameron Winklevoss, ConnectU, Divya Narendra, Facebook, Tyler Winklevoss
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Facebook Worth $3.7 Billion According To Appraisal Company
When the founders of ConnectU decided to sue Facebook, it was around the same time that the company was given a $15 billion valuation based on Microsoft’s $240 million investment in the social network. Today Facebook has denied that they are worth anything close to that $15 billion according to court documents. An appraisal company pegged Facebook to be worth $3.7 billion.
When Microsoft invested $240 million into Facebook in exchange for 1.6% equity, the company believed that Facebook’s stock was worth $35.90 per share. This figure was used when ConnectU sued Facebook. Facebook lawyers believe that the settlement with ConnectU should not be based on an comparison with Microsoft’s investment because the software giant bought Series D preferred stock. The Microsoft investment also was a premium because they were interested in deeper ties such as becoming an advertising and search technology partner.
Yesterday it was revealed that ConnectU received about $65 million as part of the settlement according to a statement made by the former law firm representing them. Cameron Winklevoss, Tyler Winklevoss, Divya Narendra created ConnectU at Harvard University before Facebook was created. Facebook cofounder Mark Zuckerberg was hired by the three ConnectU founders as a developer. Zuckerberg allegedly took the code from ConnectU and manipulated it to create Facebook.
However court documents revealed that ConnectU was payed $20 million in cash and 1,253,326 shares of common stock in Facebook worth about $45 million, based on Microsoft’s valuation. That $45 million in stock is worth $11 million based on Facebook’s own appraisal.
Cameron Winklevoss, Tyler Winklevoss, Divya Narendra Of ConnectU Get $65 Million Lawsuit Settlement From Facebook
Cameron Winklevoss, Tyler Winklevoss, Divya Narendra of ConnectU have received $65 million as a lawsuit settlement from Facebook. The lawsuit accused Facebook CEO Mark Zuckerberg of stealing the idea for Facebook from them. Although the settlement amount was supposed to be private, the financial settlement was still leaked by the law firm representing ConnectU itself.
“WON $65 million settlement against Facebook” stated a .pdf from Quinn Emanuel Urquhart Oliver & Hedges’ January business litigation newsletter. ConnectU fired Quinn Emanuel last year and are now dealing with a fee fight. Quinn wants $13 million as part of a contingency agreement.
“Sixty-five million is a significant sum — it’s certainly more than the cost of the defense,” stated Chris Scott Graham, IP litigator for Dechert. “But it’s a very small percentage of [Facebook's] valuation and therefore could be argued by Facebook to be a payment based on considerations other than the merits of the claims.” Dechert was not involved in the case.
Cameron Winklevoss, Tyler Winklevoss, Divya Narendra came up with the idea of ConnectU as part of a daing website idea at Harvard University. They hired Zuckerberg to code the idea. Instead, Zuckerberg took code and created Facebook. As Facebook grew at Harvard and expanded to other universities, Zuckerberg took funding from Silicon Valley and dropped out.
Cameron Winklevoss and Tyler Winklevoss participated at the U.S. Olympics as part of the rowing team last year. Divya is currently the Co-founder and CEO of SumZero LLC.
[via VentureBeat]
Divya Narendra: If You Can’t Beat Facebook In A Lawsuit, Join Them
Divya Narendra started ConnectU with Beijing Olympic rowers Cameron and Tyler Winklevoss. ConnectU started the idea behind Facebook. Facebook is now run by billionaire, Mark Zuckerberg. Zuckerberg’s wealth is pegged at about $1.5 billion through Facebook according to Forbes. ConnectU sued Facebook for stealing the idea and used some of their source code. Facebook and ConnectU settled out of court, but through the agreement, it was discovered that Facebook was not internally valuating themselves at the $15 billion that Microsoft pegged them at.
Divya currently works at SumZero LLC where he serves as the Co-founder and CEO. Aalap Mahadevia is the other co-founder in SumZero. Below is a screenshot available via ValleyWag:
Some of the people that wrote on Divya’s wall includes Lindsey Hess, who wrote, “Divya!! I cannot believe you are on facebook.” And Andrew Davis wrote “Um, was this part of a legal agreement or something? Never thought I’d see the day…” Divya left ConnectU off the places of his Education and Work.
Categories ConnectU, Facebook
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ConnectU Founders, Tyler and Cameron Winklevoss Finish Beijing Olympics In 6th Place
[Photo credit: Daylife]
Cameron and Tyler Winklevoss were on the U.S. rowing team for the 2008 Olympics in Beijing. Both of them are also co-founders of ConnectU. ConnectU is a social network startup based in Boston, Mass. The Winklevoss brothers sued Facebook earlier this year. The Winklevoss brothers claimed that Facebook CEO Mark Zuckerberg stole the concept and some of the code from ConnectU while he was an undergrad at Harvard University.
In order to make it to the the Olympics, the Winklevoss brothers had to get through the semifinals and a grand final. The Winklevoss brothers was 6th place out of 6 in the finals during the Olympics. Australia won the gold.
The Winklevoss brothers settled a lawsuit with Facebook. The brothers later contested the settlement because Facebook did not adequately provide their valuation. Now that the Winklevoss brothers are done with the competition, they may get back to focusing on the lawsuit.
Related Link:
1. CNET
Categories ConnectU, Facebook
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Facebook & ConnectU Case Closed In Facebook’s Favor, Official Settlement On July 2nd
 
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Judge James Ware of U.S. District Court for the Northern District of California has made a ruling in Facebook’s favor. Facebook has agreed to pay an undisclosed amount to the owners of ConnectU through an acquisition.Â
The settlement roots back to an accusation that Mark Zuckerberg and other founders in Facebook stole the idea for Facebook from the ConnectU team. The ConnectU team consists of brothers/Olympic rowing hopefuls, Cameron and Tyler Winklevoss and Divya Narendra. The tentative settlement was made this past February, but then ConnectU delayed to the settlement due to an accusation that Facebook failed to provide crucial documents for the case.Â
ConnectU also settled to not make further claims against Facebook.
“The ConnectU founders understood the deal they made, and we are gratified that the Court rejected their false allegations of fraud,” stated a Facebook representative. “Their challenge was simply a case of ‘buyers remorse,’ as described by the Boston Court earlier this month.”
Mark Zuckerberg used to work for the Harvard Connection, a company founded by the ConnectU before creating TheFacebook.com.
[Source: Reuters]
Categories ConnectU, Facebook
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