Web Editors' Choice 2012

By Bloomberg - 2012-12-24T16:25:34Z

Photograph by Nelson Ching/Bloomberg

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Facebook: It's Complicated

As a Facebook co-founder, Eduardo Saverin was about to reap a huge windfall from the company's initial public offering. So why was his name on a U.S. government list of people renouncing their citizenship? Bloomberg's Christine Harper, who discovered the record, worked with Danielle Kucera and Sanat Vallikappen to show how the move could reduce the taxes that Saverin, now living in Singapore, would owe. The news prompted Democratic senators to introduce legislation to discourage such actions.

Months after the IPO, Bloomberg's Linda Sandler, Brian Womack and Douglas MacMillan found that Facebook hadn't disclosed the threat mobile computing posed to its business until eight days before its public offering. During a two-and-a-half-month volley of messages, company executives had negotiated with the Securities and Exchange Commission over how much it had to disclose ahead of its IPO, according to letters released later. Facebook shares fell as much as 3.8 percent after the story was published.

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