The Facebook IPO (initial public offering). You can’t watch or read the news without hearing about it. Friday, May 18th is the day Facebook plans to list its stock for public trading on the NASDAQ, and immediately mint a whole bunch of new
So the real question is who exactly is making the most from the IPO? Well, get ready to meet the top 10 Facebook shareholders:
1. Mark Zuckerberg – 28.2% Value: $29 Billion
Surprise, surprise. Zuckerberg, the Founder and CEO comes in at #1. You all know the story of how Zuckerberg and his friends started Facebook from their Harvard dorm room. You all know the controversy surrounding its roots which was highlighted in “The Social Network”.
What you may not know is that in 2011, Zynga, the creator of games such as “Words with Friends” and news feed annoyance “Farmville” accounted for about 12% of Facebook’s total earnings. That should raise some red flags if you’re all pumped up to invest in Facebook stock, and it’s absolutely insane to think that people spent over $300 million to buy virtual pigs and cows for their virtual farm. Anyway, its a pretty sweet payday for Zuck. The $29 Billion will give Zuckerberg about DOUBLE the GDP of Jamaica.
2. Jim Breyer/Accel Partners – 10% Value: $10.4 Billion
In 2010 Fortune Magazine named Jim Breyer one of the 10 smartest people in technology. I don’t think anyone is in position to argue that distinction this week. Breyer through his venture capital firm Accel Partners invested in Facebook back in 2005, and this week will be handsomely rewarded for the gamble they took.
3. Dustin Moskovitz – 7.6% Value: $7.9 Billion
Meet the youngest billionaire in the world, Dustin Moskovitz. Mark Zuckerberg’s roommate and Facebook co-founder, Moskovitz earns the title of youngest billionaire by being just 8 days younger than Zuckerberg. Moskovitz left Facebook in 2008 to start Asana. A company designed to help people and businesses become more productive.
A lot of us got roommates that slept through all their classes and went drinking every night of the week. Moskovitz got Zuckerberg and now almost $8 Billion out of his housing assignment. Not too shabby.
4. Digital Sky Technologies – 5.4% Value: $5.6 Billion
Digital Sky Technologies is a Russian company that invested $200 million in Facebook back in May 2009. In January 2011 DST, along with Goldman Sachs invested another $500 million into Facebook. Now they’re set to cash in on those investments, big time.
It’s also worth noting that Digital Sky Technologies holds stakes in Zynga and Groupon and is rumored to be in talks to invest in Twitter. Someone at DST certainly has the Midas touch when it comes to picking tech companies to throw money at.
5. Eduardo Saverin – 5% Value: $5.2 Billion
Another Co-founder of Facebook, if you’ve seen “The Social Network” you know Eduardo’s story. He started with a nearly 1/3 stake in Facebook before being screwed over by Zuckerberg, Sean Paker and Peter Theil, having his stake diluted down to nothing. After a series of legal battles ended with Eduardo’s stake being bumped back up to 5%.
Born in Brazil, Eduardo graduated from Harvard with a B.A. in Economics. He currently lives in Singapore where he invests in a number of different companies. Eduardo has also made headlines recently by renouncing his U.S. Citizenship ahead of the IPO.
6. Sean Parker – 4% Value: $4.16 Billion
Originally a co-founder of Napster, Parker invested in Facebook in 2004 after a dinner with Zuckerberg and Saverin. You may know Parker best as the guy Justin Timberlake played in “The Social Network”, but he acted as Facebook’s first president and negotiated the investment deals with both Accel Partners and Peter Theil. Parker was ousted from Facebook in 2005 after a drug-related arrest as you may remember from the movie.
Don’t feel bad for Sean Parker, he landed on his feet. Along with the 4% stake in Facebook, Parker holds a very large stake in music service Spotify, which in my opinion, is one of the best things to happen to music in a long time.
7. Peter Theil – 2.5% Value: $2.6 Billion
Peter Theil is no stranger to internet success. He made $1.5B in 2002 after selling PayPal and has also had a large hand in launching/funding YouTube and Linkedin. Theil became Facebook’s first large, outside investor in 2004 with his $500,000 investment for 10.2% of the company.
8. Microsoft – 1.6% Value: $1.66 Billion
I’m actually quite surprised to find Microsoft on this list. They often get a bad rap, but obviously made a shrewd investment when they paid $240 million for 1.6% of Facebook back in 2008.
9. Multiple Venture Capital firms – 1.5% each Value: $1.56 Billion
10. Chris Hughes – 1% Value: $1.04 Billion
The third roommate of Zuckerberg and Moskovitz. Hughes was the only founder who didn’t write code generate advertising revenue. Hughes worked as a sort of spokesman for the site, focusing on the user. He left Facebook in 2007 to work on the presidential campaign of then senator Barack Obama. Hughes was in charge of the social media face of the campaign and played such a large role that in April of 2009 he was featured on the cover of “Fast Company” magazine with the headline “The Kid Who Made Obama President”.
These days Hughes is the co-founder of Jumo a startup aimed at using technology and social web platforms to connect people looking to do good in the world with like-minded organizations.
Cameron and Tyler Winklevoss, along with friend Divya Narendra each own .022% of Facebook. Good for around $22.9 Million each. If you don’t remember, they came up with the idea for The Harvard Connection (later ConnectU) and enlisted Mark Zuckerberg to help them write code for the site. Zuckerberg agreed, but then blew them off to create Facebook. The three sued and allegedly received a settlement for around $65 million.
The settlement, along with the shares they were awarded makes out for a pretty handsome payday. While I’m sure they still resent Zuckerberg, I’m sure $80+ million goes a long way to heal the wounds of having your idea (allegedly) stolen.
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