Facebook co-founder renounces his U.S. citizenship, "may reduce his tax bill following Facebook IPO" [View all]

[Amerigo Vespucci]

Eduardo Saverin's decision to renounce his U.S. citizenship may reduce his tax bill following Facebook's IPO, reports say.

Facebook co-founder's decision to renounce U.S. citizenship

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Eduardo Saverin, one of four co-founders of Facebook, has renounced his U.S. citizenship.

The move may reduce his tax bill following the initial public offering that values the social-network powerhouse at as much as $96 billion, according to Bloomberg.

Facebook expects to raise as much as $11.8 billion through the IPO. Saverin’s stake in the company is about 2 percent, according to The Wall Street Journal. His holdings are not listed in Facebook’s regulatory filings.

Saverin, a Brazilian-born resident of Singapore, helped Mark Zuckerberg start Facebook while at Harvard University. Saverin was pushed out early on, with his stake in the company diluted from 34 percent to less than 10 percent, according to The Wall Street Journal. After selling some shares and more dilution, that stake has thinned more. Even so, he stands to profit handsomely from the IPO.