Facebook continues to go from strength-to-strength – with a growing user base, improving technology and commitments to addressing fake news concerns – the business is doing well. It is arguably the website that has had the biggest impact on society in the last few years, with now over 2billion users on the site. Yes there have been many concerns raised, but for the most part, Facebook has a positive effect. To get to the position it is in now, founder Mark Zuckerberg has undertaken several business decisions, many of which have resulted in changes in equity. In this article, we take a look at who exactly owns what in Facebook in 2018. This article is also this week’s Sunday Read.
We will split this article up into six parts. Firstly, we have the employees – with Mark Zuckerberg headlining this group. We then have former Facebook employees – who have since left the behemoth. Then we have angel investors – which include the early investors in the site. These are followed by the venture capitalists – who made bigger investments at a slightly later stage. Next up is corporate investors – which include businesses who own some of Facebook. And finally, the rivals – those that laid claim to conceiving the idea of Facebook, only to have Zuckerberg steal the idea… yes they own some of the business! These numbers are accurate as of 2018.
We begin with the founder – Mark Zuckerberg. Despite Facebook being a fully-fledged public trading company, he has managed to remain the majority shareholder – holding 24% of the shares. Jeff Rothschild, who was the oldest employee when he first joined Facebook, owns 0.8%. Other current employees who hold shares are David Ebersman (0.1%), Sheryl Sandberg (0.1%), Theodore Ullyot (0.1%) and Mike Schroepfer (0.1%).
Former employes of Facebook still actually own almost 20% of the company between them. The largest shareholder within this area is Dustin Moskovitz – who was an early programmer for the site – he owns 6%. Eduardo Saverin – the co-founder of Facebook, who eventually fell out with Zuckerberg, still owns 5%. Sean Parker – an early investor, owns 4%, with Chris Hughes another well-known name who still owns 1%. Others include Matt Cohler (0.8%), Adam D’Angelo (0.8%), Owen Van Natta (0.8%), Justin Rosenstein (0.2%), David Choe (0.2%) and Ezra Callaghan (0.1%). Everyone here has subsequently left Facebook at some point.
Six angels were among the early investors in Facebook – each of which made a wise investment! The most well-known is PayPal founder Peter Thiel, who to this day retains 3% of the business. Jim Breyer owns 1%. Others here include Li Ka-Shing (0.8%), Reid Hoffman (0.5%), Mark Pincus (0.5%) and the Samwer Brothers (0.1%) – a family trio known for making several impressive investments.
Next up we have venture capitalists – firms that made larger investments, often a couple years or more into Facebook’s life. Accel Partners is the second-largest shareholder, holding 10% of Facebook. Other venture capitalist firms own less, but still significant amounts. Both Greylock and Meritech own 1.5%, as do Elevation Partners. WTI own 0.5%, with the remaining firms being Mark Andreessen (0.25%), Andreessen Horrowitz (0.2%), General Atlantic (0.1%) and Kleiner Perkins (0.05%).
This section here is for businesses that have made investments into Facebook. Russian firm Digital Sky own 5%, with Microsoft owning 1.6%. Goldman Sachs owns 1%, with Interpublic and T. Rowe Price at 0.25%. Finally, Fidelity Investments own 0.2%. As you see, there are several big firms that were clearly aware of the potential of Facebook.
The well-known story of Facebook’s early days involves Mark Zuckerberg allegedly stealing the idea from three individuals – twins Cam and Tyler Winklevoss and Divya Narendra. A settlement led to the trio being awarded shares in Facebook. To this day, they are now worth 0.022% each – worth $18m!
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So there we have it – a comprehensive list of who owns what in Facebook for 2018. This could well change soon – such is the nature of Facebook! One thing is for sure – the investment potential continues to be excellent!