A deterrent for what? What's the lesson here? If you're a student don't sign an NDA on the off chance you'll later found a company and get acquired by Facebook for $2B?
The real takeaway here is, if you have world-class tech guys working for you then don't support them, just tie them up in contracts, and when they leave and become successful you can sue them to get 25% of whatever they made, at zero risk to you.
World-class tech guys should also respect contracts they sign. I respect his works and achievements, but I think his actions in this case were unfair. I only hope I don't know all details and my opinion is based on not all facts. I'd like to know my opinion is wrong.
if you have world-class tech guys working for you then don't support them, just tie them up in contracts, and when they leave and become successful you can sue them to get 25% of whatever they made, at zero risk to you.
He was free to not let id get bought out or to take a lower paying offering elsewhere.
Paying X will reduce profits by that amount and taxes by a much lower amount. I'm not sure FB will consider the whole thing nice. I mean, having to pay twice as much would't be twice as nice.
I believe that'll be a good deterrent in the future.
[1] http://uk.businessinsider.com/facebook-actually-paid-3-billi... (thanks for the correction, Cozumuel)