Introduction
Mark Zuckerberg, the founder and CEO of Facebook, is one of the most influential figures in global technology today. He currently owns or controls more than half of Facebook’s voting stock – the Class B shares – and is the single largest shareholder. In this article, we will explore exactly how much of Facebook does he actually own.
What does Mark Zuckerberg own in Facebook?
According to Forbes, Mark Zuckerberg owns about 16 percent of Facebook, making him the single largest shareholder. As of 2021, Forbes estimates that his net worth is at a staggering $98.6 billion, making him the fifth wealthiest person in the world. Zuckerberg also has majority control with 54 percent of Facebook’s voting shares belong to him.
However, this doesn’t necessarily mean that he is the majority owner. In December of 2012, Zuckerberg transferred a sizable amount of his Class B shares over to charitable trusts and foundations. These Class B shares are valued at ten times the Class A shares, giving Zuckerberg much greater control over the company.
Why Does Mark Zuckerberg Own So Much in Facebook?
Unlike other tech Billionaires such as Bill Gates, Jeff Bezos, and Larry Ellison who lifted themselves to the top of tech billionaires’ list due to their enormous stakes in their respective companies, Mark Zuckerberg had a unique story.
Facebook went public in May 2012 and raised an initial public offering (IPO) of 421 million shares at the price of $38 per share. At the time, Zuckerberg owned 28 percent of the company and had issued himself 28.4 million Class A shares and 420.5 million Class B shares.
In April 2013, Zuckerberg sold 12.5 million shares of Class A stock at a price of $26.60—skimming off only $336 million before taxes. No matter what he sells, he still controls 54 percent of Facebook’s voting shares.
Shareholders can attend the company’s annual shareholders meeting and use their voting power. Having majority control of Facebook’s voting shares gives Zuckerberg enormous power over the direction of the company. He can cast a deciding vote on any issue that come before the board, such as acquisitions and executive compensation. He also has the power to appoint Facebook’s board of directors as well as to appoint a majority of the board’s members.
In terms of Facebook’s corporate strategy, Zuckerberg can retain a commanding influence. He has been quite nimble in adjusting his corporate strategy to keep up with the ever-changing trends of the industry. Examples include rolling out new products, making key acquisitions, and poaching top talent from rival companies.
The ownership stake that Mark Zuckerberg has in Facebook has far-reaching implications not only for the company but also for the social media industry at large. His ownership stake gives him a decisive advantage to make critical decisions on a whim. He doesn’t have to answer to shareholders or other board members — he can make decisions freely as long as they benefit his own strategy.
Also, Zuckerberg’s involvement and decisions in Facebook has a direct impact on its stock price. If he makes decisions that benefit the stock price, the company will see an upsurge in its share prices. By the same token, if he makes the wrong decision, the stock could suffer accordingly.
What are Mark Zuckerberg’s Plans for the Future?
Despite his tremendous influence and control over Facebook, Mark Zuckerberg plans to keep his ownership stake in the company for now. He has reiterated this multiple times in the past, including when he famously said, “I’m committed for the long-term.”
He has also been planning for the company’s future. Zuckerberg has been very vocal about his ambitious plans to transform the future of social media, from the likes of Maps, Commerce and even Virtual Reality. He’s also planning to transform the way people access information with its Portal device. All of these ambitious projects are going to need a lot of investments, so it’s not surprising that Zuckerberg wants to stay in it for the long haul.
Does Zuckerberg See Facebook Growing Forever?
Zuckerberg has long said that he plans to keep his ownership stake in Facebook. He has stated that the company has ambitious projects that need his full attention, so he’s not interested in cashing out anytime soon.
That said, Zuckerberg also believes that Facebook should be able to stand on its own two feet in the long run. He also wants Facebook to be a powerful force for social good. He believes that the company has the potential to bring people closer together and help foster a more connected world.
It’s clear that Mark Zuckerberg is committed to seeing Facebook grow and succeed in the long run. He has been vocal on numerous occasions about his dedication to the company and its mission.
How Zuckerberg is Reinvesting?
Instead of cashing out, Zuckerberg plans to reinvest his earnings into his own projects. His philanthropic works have already made a positive impact on the world. He has invested his fortune into the Chan Zuckerberg Initiative, which focuses on eradicating disease, advancing education, and creating economic development opportunities.
He has also invested in the Breakthrough Energy Ventures Fund, which is focused on discovering and investing in new ways of creating energy. Zuckerberg has also made investments in the health care industry and education reform.
Conclusion
Whether you love or hate Mark Zuckerberg and his company, there is no denying that he has an incredible influence over Facebook’s future. With 54 percent of the voting shares, it’s clear that he has complete control over the direction of the company. He has also been investing in a number of projects to improve the world and re-investing his earnings into the company to ensure its success. All in all, Zuckerberg’s commitment to the company and its mission is admirable and it’s no wonder why he remains one of the wealthiest people in the world.
