Tags: Zuckerberg | Fortune | Facebook | ipo

Zuckerberg’s Fortune Up $1.5 Billion on Rising Facebook Shares

Friday, 18 May 2012 01:15 PM

Mark Zuckerberg is one of the 25 richest people on Earth after shares of Facebook Inc., the world’s most popular social networking company, rose in their first hour of trading.

The company’s shares rose 7.9 percent to $41 per share at 12:45 p.m. New York time, pushing Zuckerberg’s net worth to $20.8 billion, a fortune that would place him 23rd on the Bloomberg Billionaires Index, ahead of Amazon.com Inc.’s Jeff Bezos.

“All the big investors and hedge funds came in for a quick flip,” said Mohannad Aama, a Managing Director at Beam Capital Management LLC, in a telephone interview from his New York office. “There was definitely a lot of pressure at the open.”

Facebook raised $16 billion in an initial public offering, selling 421.2 million shares for $38 each on May 17. It was the biggest technology IPO in history. The company began the day valued at 107 times trailing 12-month earnings.

Facebook’s chief executive officer sold 30.2 million shares of the Menlo Park, California-based company for $1.15 billion at the offering. Most of the proceeds will be used to pay taxes associated with exercising 60 million stock options. He now owns 503.6 million shares.

“Hundreds of Millions”

Dustin Moskovitz, 27, who co-founded Facebook with Zuckerberg from their dorm room at Harvard University, owns 133.7 million shares of the company’s Class B stock worth $5.5 billion. He will sell 7.5 million shares if the underwriters exercise their option to buy additional stock.

Moskovitz, the company’s first chief technology officer, left the social network with Facebook colleague Justin Rosenstein in 2008. The duo founded Asana Inc., a task management software company. The company received $9 million in funding from venture capital firms Andreessen Horowitz and Benchmark Capital in 2009, both of Menlo Park.

Eduardo Saverin, 30, has an estimated $3.1 billion stake. He owned about 4 percent of the company’s outstanding shares prior to the offering, according to whoownsfacebook.com, which is published by Massinvestor Inc. and draws its information from Facebook’s filings with the SEC, press releases, news reports and other publicly available sources.

The Brazil-born Facebook co-founder renounced his U.S. citizenship last year and is now a permanent resident of Singapore. Saverin’s move could save him $67 million in federal taxes, according to data compiled by Bloomberg.

Saverin declined to discuss his stake in a telephone interview from his home in Singapore.

“I am obligated to and will pay hundreds of millions of dollars in taxes to the United States government,” he said in a May 17 statement.

The New Republic

Co-founder Christopher Hughes, 28, became a billionaire. He owns about 22 million shares of Facebook, according to a person familiar with his holdings who asked not to be named because the matter is private. At $41 per share, his stake is worth $902 million.

Hughes, who bought the Washington, D.C.-based magazine the New Republic in March 2012 for less than $5 million, has more than $100 million in cash and real estate after selling some of his Facebook hoard, according to data compiled by Bloomberg.

Peter Thiel provided Facebook’s first outside investment: $500,000 in 2004. The Founders Fund Management LLC partner sold 16.8 million shares during the offering and owns almost 28 million shares of Facebook following the deal, according to regulatory filings. His shares are valued at $1.1 billion.

Thiel, Parker

Thiel was brought to Facebook by technology entrepreneur Sean Parker, who persuaded Zuckerberg to move to California to focus on the company full time in 2004. The 32-year-old Parker owns 66 million Facebook shares worth $2.7 billion. He will sell 10 million shares if the underwriters exercise their option to purchase additional shares.

Facebook’s chief operating officer Sheryl Sandberg, 42, who was lured from Google in 2008, owns 27 million shares, including 25 million restricted stock units that have vested. They are valued at $1.1 billion.

Sandberg owns more than 14 million unvested units that aren’t counted in her net worth calculation. She also owns small stakes in Starbucks Corp. and Walt Disney Co.; she is a director at both companies.

Facebook’s soaring stock further elevated Mark Pincus, the founder of Zynga Inc., the world’s largest social gaming company, in the billionaire ranks. Pincus, 46, owns 13 percent of Zynga, whose popular online games such as Mafia Wars and Farmville generated more than 10 percent of Facebook’s sales in 2011. Zynga shares are down more than 40 percent since March.

Pincus owns 4.3 million shares of Facebook valued at $176 million. He sold 1 million Facebook shares during the offering, earning him $38 million.

Russian Billionaires

Alisher Usmanov, Russia’s richest man, has an estimated 80 percent interest in the 85.6 million Facebook shares held by certain DST Global funds. The DST Global entities are controlled by billionaire Yuri Milner, and sold 45.7 million shares in the offering. The funds may sell more in the coming months, according to regulatory filings.

Milner owns about 12.5 percent of DST Global’s Facebook shares, according to data compiled by Bloomberg. His stake is worth $439 million. The DST Global funds own stakes in Zynga, Groupon Inc. and Twitter Inc.

Usmanov -- whose most valuable asset is his 45 percent stake in Metalloinvest, Russia’s largest iron ore producer --has never met Zuckerberg.

© Copyright 2021 Bloomberg News. All rights reserved.

Friday, 18 May 2012 01:15 PM
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