Little history of Facebook
Facebook started life in 2003 as a game previously called Facemash and it’s created by Mark Zuckerberg and co-founder Eduardo Saverin, the two were roommates at Harvard University at the time. “Who Owns Facebook”
Status: Founder, CEO
Residence: Palo Alto, CA
Education: Two years at Harvard University
Mark Zuckerberg has been credited for connecting the world via Facebook. Raised in Dobbs Ferry, NY, he began writing software while in middle school and by the end of high school, he had co-written a music recommendation program called Synapse Media Player, which Microsoft and AOL reportedly offered him a million dollars to further develop. “Zuckerberg” however turned them down and ran off to attend Harvard. While in his ivy covered Cambridge dorm, he then created Facemash, a website that compared students’ photos side-by-side in a fashion similar to HOT or NOT.com.
After disciplinary action from the school’s administration, Zuckerberg shut down Facemash and began “Facebook,” initially it is only available to the students of Harvard. Zuckerberg has since defended the site in intellectual property disputes and spurned buyout offers from Viacom, Yahoo! and other suitors. The 27 year old CEO owns 28.2% of Facebook’s B shares. Using an $85 billion valuation, Zuck’s stake is worth just shy of $24 billion. “Who Owns Facebook”
Previously Facemash let users rate fellow classmates against one another by giving them two photos and deciding whether they were “hot or not”. A year later, out of the 19-year-old Zuckerberg’s dormitory room, Facebook was launched.
Remaining the largest shareholder is one of Zuckerberg’s most impressive achievements, not only for his personal wealth, but for his voting power as well.
Back in May when Facebook started trading, its founder used to own 443 million shares and 60 million unexercised options. As the company’s shares started trading at $38 a share, it represented $16.9 billion, making him one of the youngest multi-billionaires. And Again, this is only for his stock-based wealth. “Who Owns Facebook”
Even though the stock had a roller coaster year and the company recently released more shares, Zuckerberg increased his wealth in shares thanks to stock-based compensation. Shares were trading above $30 a share for most of the month of January. Now at $28.35, it seems like Facebook shares have finally found a stable price around the $30 mark.
Facebook’s IPO price was $38 a share when the company started trading in May. But in August, the stock fell to its lowest price at the time — $19.69 — as the initial lockup expiration of 271 million shares kicked in. Other lockup expirations brought a few days of downturn.
Yet, investors looking for short-term profit based on potential share price drops and short selling have slowly moved away from Facebook shares since October, leaving committed investors on board. These days, price changes reflect more closely product updates and earnings. “Who Owns Facebook”
Back in September, Zuckerberg declared that he wouldn’t sell his shares for the next 12 months in order to dampen lockup expirations and drive confidence. That’s why his virtual wealth will continue to increase and decrease alongside Facebook shares in the coming months.
This article originally stated that Mark Zuckerberg owns 29.8% of Facebook. In fact, Zuckerberg owns 29.8% of Facebook’s Class A shares, but only around 20% of the company as a whole. That makes this stake worth closer to $13.6 billion rather than $18 billion. In addition to that, Zuckerberg owns other types of shares, harder to track. So his total stake is worth more than that. “Who Owns Facebook”
Who owns Facebook?
Facebook went public in May 2012 in one of the biggest technology IPOs in history. The social network was valued at $104 billion, the highest valuation ever for a newly public company, making 28-year-old Zuckerberg worth more than $17.5 billion overnight.
The company’s shares have climbed, following a shaky start, and Zuckerberg is now the 5th richest person in the world with $70.4 billion.
Facebook is now has more than two billion monthly users and has grown into one of the largest internet companies in the world. “Who Owns Facebook”
2004: Mark Zuckerberg creates Facebook in his Harvard dorm room
2006: Facebook allows anyone over 13 to join, introduces the news feed
2007: Sells a 1.6% stake to Microsoft for $240m
2008: Reaches 100 million users
2009: Introduces “like” button
2010: Facebook becomes profitable
2012: Acquires Instagram for $1bn in cash and stock
2012: Reaches one billion users
2014: Buys messaging app WhatsApp for $19bn
2015: Extends internet.org effort to provide internet access to rest of world
2016: Launches Facebook Live broadcasting feature
2017: Reaches two billion monthly active users.
“Who Owns Facebook”