Facebook announced in an SEC filing that founder and CEO Mark Zuckerberg now owns 29.3 percent of Facebook’s Class A shares (NASDAQ:FB), up from a 28.2 percent stake on the day of the IPO. In total, Zuckerberg owns roughly 20% of Facebook. With a market cap of about $68 billion, Zuck’s stake is worth about $13.6 billion.
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. Again, this is only for his stock-based wealth.
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.
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.
Correction: 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.
Facebook is the world’s largest social network, with over 1 billion monthly active users. Facebook was founded by Mark Zuckerberg in February 2004, initially as an exclusive network for Harvard students. It was a huge hit: in 2 weeks, half of the schools in the Boston area began demanding a Facebook network. Zuckerberg immediately recruited his friends Dustin Moskovitz, Chris Hughes, and Eduardo Saverin to help build Facebook, and within four months, Facebook added 30 more college networks. The original...