Who Owns Facebook? – The 10 Richest Facebook Shareholders
Facebook held their initial public offering (IPO) on Friday, May 18, 2012 raising $16 billion.
This made it the third largest IPO in U.S. history, with a peak market capitalization of over $104 billion.
A huge step for a company, that famously was in no hurry to go public.
The IPO made the owners of Facebook rich. An estimated 1000 millionaires!
(Nearly 1/3 of the company’s workforce received a 7-figure payout.)
Some Facebook Stats
- At the time of the IPO, Facebook had approximately 845million users world-wide. (the current figure stands at 2.4 Billion)
- Rounding up 845 million to a billion users, we could say that every user was worth $100 to Facebook at the time of the IPO.
- As of May 08, 2020 the Facebook net worth is in excess of $600 Billion. You can track net worth here. As a comparison the net worth (market cap) of Alphabet (owners of Google) is in the region of $945 Billion.
- According to Axios, Facebook will generate about $226 per user in the U.S. in 2021.
- Worldwide, 26.3% of the online population use Facebook. (72.4% in the USA – June 2017)
- 48,268 full-time employees as of March 31, 2020
Who Owns Facebook?
Mark Zuckerberg – 29.3% – US $54.3 billion (March 2020)
Mark Zuckerberg (Founder and CEO) now owns 29.3 percent of Facebook’s Class A shares (NASDAQ:FB), compared to the time of the IPO, (which you can read in full here) when Zuckerberg owned 28.2% of Facebook.
This makes him Facebooks largest shareholder as well as being one of the worlds riches individuals. [No 7 in Forbes annual list of the world’s billionaires]
Here’s another little interesting fact about Facebook. Back in 2011, Zynga, the owner of social games such as FarmVille, was responsible for roughly 12% of Facebook’s earnings. That’s massive. Here’s a quote from Facebook’s IPO offering:
“We currently generate significant revenue as a result of our relationship with Zynga, and, if we are unable to successfully maintain this relationship, our financial results could be harmed.
In 2011, Zynga accounted for approximately 12% of our revenue, which amount was comprised of revenue derived from payments processing fees related to Zynga’s sales of virtual goods and from direct advertising purchased by Zynga. Additionally, Zynga’s apps generate a significant number of pages on which we display ads from other advertisers. If the use of Zynga games on our Platform declines, if Zynga launches games on or migrates games to competing platforms, or if we fail to maintain good relations with Zynga, we may lose Zynga as a significant Platform developer and our financial results may be adversely affected.”
That means that Zynga users spent $308M on Facebook in 2011, which is absolutely ridiculous when you consider what they sell.
As a side note: Facebook is no longer so dependent on external relationships for revenue. For example: Facebook bought Instagram in 2012 for $1bn, and WhatsApp in 2014 for $19bn.
In addition, Facebook now owns the 4 most downloaded Apps: Facebook, Facebook Messenger, WhatsApp and Instagram. These Apps have more than one billion users each.
With Mark’s Facebook money, you could buy…
- 558 Gulfstream G550 private jets, at $50M each.
- Antilla, the world’s most expensive home, 28 times.
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Jim Breyer & Accel Partners – 11.4% – $11.4 Billion
For those of you that don’t know, Jim Breyer is an American venture capitalist and partner of Accel Partners, which currently owns a solid 11.4% of Facebook, which for those of you who haven’t cottoned on to the maths yet, that’s roughly $11.4 Billion. In August, 2010, Fortune Magazine named Breyer one of the 10 smartest people in technology, and you can see why. It’s his smart thinking and foresight into an incredible company, that has skyrocketed his wealth over the past few years. His previous success with earlier ventures ensured that there was enough money available invest in the right company, at the right time. His firm Accel Partners own the stake in Facebook, but he’s a very large part of the success, and the face of the company.
With Jim’s Facebook money, you could buy…
- 228 Gulfstream G550 private jets, at $50M each.
- Antilla, the world’s most expensive home, 11 and a bit times.
Dustin Moskovitz – 7.6% – $7.6 Billion
Dustin is just 8 days younger than Mark Zuckerberg, making him the youngest billionaire in the world. Dustin founded the site with Mark back at Harvard and holds on to a 7.6% stake of the company, which with this current valuation is likely to net him a worth of $7.6B. He left Facebook in 2008 to work on his own ventures, such as a mobile photo-sharing site, called Path (I’m sure you’ve heard about it lately), which has already turned down a $100 million offer from Google, and now serves over 2 millions people. As good as that may well be, you can’t help but compare it to the likes of Facebook, which has grown rapidly in the 8 short years since it was created. Clearly a force to be reckoned with.
With Dustin’s Facebook money, you could buy…
- 152 Gulfstream G550 private jets, at $50M each.
- Antilla, the world’s most expensive home, 7 and a bit times.
Yuri Milner & Digital Sky Technologies – 5.4% – $5.4 Billion
DST was founded by Yuri Milner to focus solely on investments in the internet sector, where they have investments in Facebook, Zynga and Groupon. They bought into Facebook with a $200 million investment in May 2009, based on a $10 Billion valuation. On top of that, they put another $100 million together to start buying employee’s shares to expand their stake in the company. In January 2011, they co-led an investment with Goldman Sachs of another $500 million based on a $50 billion dollar valuation. This has made them one of the largest shareholders in Facebook, and their stake in Zynga means that they’re making money from more than one source, seeing as Facebook users decided to spend $308 million on Zynga through Facebook alone last year. Ridiculous when you think about it.
With Yuri’s Facebook money, you could buy…
- 108 Gulfstream G550 private jets, at $50M each.
- Antilla, the world’s most expensive home, 5 times, with some spare cash left over for some fancy cars in the basement.
Eduardo Saverin – 5% – $5 Billion
You might recognise the name if you’ve seen ‘The Social Network’, and that’s because Eduardo played a key role in the company’s founding, back when he was roommates and best friends with Mark Zuckerberg. And if you’ve seen the film, you’ll know that their relationship went sour, and that Eduardo actually used to own a third of the company, before it went down to 30% when Dustin Moskovitz came aboard. After some disputes between Mark and Eduardo about how the company was going to move forward, and whether Eduardo was going to remain as part of the Facebook team, he got pushed out the company when a group of investors (including Peter Thiel from PayPal), got onboard. After a series of legal disputes, Eduardo finally got his stake pushed back up to 5%, and even from such a small stake, he’s worth an incredible amount of money. There might be love lost between the two of them, but I wouldn’t turn my nose up at $5 Billion.
With Eduardo’s Facebook money, you could buy…
- 100 Gulfstream G550 private jets, at $50M each.
- Antilla, the world’s most expensive home, 5 times.
Sean Parker – 4% – $4 Billion
Sean parker is a name that many of you would have been familiar with since way before Facebook, due to his role in Napster, the peer2peer file sharing program. When that eventually went sour and everyone tried to sue him, he walked away with an interesting reputation and a whole lot of knowledge. It was Sean that got involved in Facebook when it was just five months old, becoming the company’s first president, and helped the company to think big with the knowledge that he had acquired from Napster, and his role as an early advisor to Friendster (anyone remember that?). He introduced the company’s first investor to Mark, in the form of Peter Thiel (PayPal Co-Founder) and was the one to implement features such as the photo sharing function. In Mark’s own words, “Sean was pivotal in helping Facebook transform from a college project into a real company.”
He has other irons in the fire, and has recently invested $15 M in Spotify, which is a rival to the new version of Napster, but none of that accounts towards the wealth that we’re look at here today. With a 4% share in one of the fastest growing and most profitable companies on the internet, he’s a sizeable part of something very special.
With Sean’s Facebook money, you could buy…
- 80 Gulfstream G550 private jets, at $50M each.
- Antilla, the world’s most expensive home, 4 times.
Peter Thiel – 2.5% – $2.5 Billion
As you hopefully read above, Peter experienced early success on the internet with PayPal, which he sold for $1.5B in 2002, which left him with some money to put to good use. He became the first investor in Facebook back in 2004 with a $500,000 investment for a 10.2% stake in the company. His share has been of course watered down in the past eight years as new investors have gotten on board, looking for a stake in the business. His business acumen and foresight for a small company, with plenty of competitors, has served him well as it’s one of the fastest growing companies on the internet, with a value similar to that of McDonalds.
With Peter’s Facebook money, you could buy…
- 50 Gulfstream G550 private jets, at $50M each.
- Antilla, the world’s most expensive home, 2 1/2 times.
Microsoft – 1.3% – $1.3 Billion
Microsoft bought into Facebook right around the time that Li Ka-shing did below, paying $240 million for 1.6% of Facebook. Those shares have now been diluted somewhat, so their stake has come down to $1.3 billion, only earning them just over a billion dollars from their investment. Poor things. All jokes aside though, they had the money, and they saw the opportunity and potential so they took it. 2008, when they bought the stock, was an interesting time for Facebook, as it was only half the age it is now, and people were only just beginning to make the switch from other social networks.
I remember learning about Facebook in 2006, and I even opened an account, but I decided I didn’t like it, and didn’t come back to it until the next year. It was only in about 2008, when the majority of my friends and I started to say goodbye to MySpace for good, and open up a Facebook account instead. Microsoft’s investment at this time meant that the company was already in a very strong position, but still had plenty of room to grow, which makes it a wise time to invest for any investor. If anyone can find out how much of Microsoft Bill Gates owns, I’d be very interested to know, because then you could see how much he personally owns of Facebook.
With Microsoft’s Facebook money, you could buy…
- 26 Gulfstream G550 private jets, at $50M each.
- Antilla, the world’s most expensive home once, with a bit of cash left over for soft furnishings.
Chris Hughes – 1% – $1 Billion
Chris Hughes is the forth roommate to Mark, Eduardo and Dustin, from when they were back at Harvard, and that was how he got involved with Facebook. As well as a co-founder of Facebook, Chris was also in charge of the social media side of Barack Obama’s presidency campaign. He appeared on the cover of ‘Fast Company’ magazine, under the title ”The Kid Who Made Obama President; How Facebook Cofounder Chris Hughes Unleashed Barack’s Base – and Changed Politics and Marketing Forever”. Now that’s a pretty bold statement to make about anyone, but it seems that Chris really did play a big part in promoting Obama, with his extensive knowledge of social media. I don’t know about you, but if I needed someone to help promote me through social media, I’d want one of the co-founders of Facebook too.
With Chris’s Facebook money, you could buy…
- 20 Gulfstream G550 private jets, at $50M each.
- Antilla, the world’s most expensive home, once. Still though, who really needs 2?
Li Ka-shing – 0.8% – $800 Million
The Hong Kong billionaire Li Ka-shing bought into Facebook in 2008, when the company had a valuation of around $15 billion and he only paid $120 Million. It sounds a bit ridiculous to say only when it’s an enormous amount of money, and only a very small percentage, but that very small percentage is now worth almost seven times what he paid for it, at $800 million. It makes you wonder what would happen now if you invested the same amount of money? I think that even back in 2008 there were plenty of investors who felt like they had already missed the boat, when really, that was when Facebook really started to take off and secure itself as a giant of the internet.
With Li’s Facebook money, you could buy…
- 16 Gulfstream G550 private jets, at $50M each.
Today, Facebook is much more than a Social Media company.
Rightly or wrongly in a world of Fake News, Facebook has become in my opinion the ultimate news organization.
Which of course is on of the reasons many people ask Who Owns Facebook?
Inspired by the FACEBOOK Success Story?