07 30 2016
  8:02 am  
read latest

breaking news

The Wake of Vanport

NEW YORK (CNNMoney) -- The value of Facebook CEO Mark Zuckerberg's stake in the company he founded has plunged $7.2 billion since its initial public offering.

Zuckerberg was worth $19.1 billion, based on the IPO price of $38 a share back in May. He sold 30 million shares on the stock's debut day in order to raise cash to pay taxes, but he still had 503 million shares at the conclusion of the IPO.

But as of midday Friday, Zuckerberg's stake is now worth $11.98 billion.

To put the $7 billion drop in context, the estimated net worth of Google chairman Eric Schmidt, based on his ownership stake in the search giant, is $5.5 billion. So you could say that Zuckerberg has lost more than a Schmidt-load of money.

Still, nobody should shed any tears for Zuckerberg. Being worth just under $12 billion is still enough to make him among the 72 richest people in the world, according to the most recent rankings from Forbes.

Facebook shares closed barely above the IPO price the first day of trading and have steadily lost ground ever since. The company released its first earnings report since the IPO on Thursday and investors were disappointed. Facebook hit an all-time low Friday.

Of course Zuckerberg isn't the only one who has taken a hit from Facebook's fall. Sheryl Sandberg, the company's chief operating officer, had just under a $1.6 billion stake in the company at the time of the IPO, but has seen the value of that stake fall to $980 million with the latest slide.

Dustin Moskovitz, one of the co-founders of Facebook and the second largest individual shareholder after Zuckerberg, lost $1.9 billion of his $5.1 billion stake in the company. Another former executive from its early days, Sean Parker, the third largest individual shareholder, has lost nearly $1 billion of his $2.6 billion stake at the time of the IPO.

The CEOs of other social media companies have also watched their net worth plunge since their IPOs. Zynga CEO Mark Pincus has seen the value of his stake fall by 70% since the online game developer's December IPO.

The slide in shares of online discount site Groupon have also hit CEO Andrew Mason's stake very hard. The stock is down 65% since its debut.

But neither Pincus or Mason had a net worth remotely approaching Zuckerberg's -- both had stakes in their companies worth just more than $900 million at the time their IPO's priced. That means that Mason's net worth has tumbled by $610.1 million, while Pincus has lost $650.9 million in Zynga's decline.

Pincus also had 4.3 million shares of Facebook after the IPO there, so he lost another $61.2 million in the Facebook stock slide since then, taking his Facebook holdings down to about $102.4 million.

But one social media CEO who has done well since his IPO is LinkedIn's Jeffrey Weiner. Shares of the company have more than doubled since the May 2011 IPO, although they are off the highs they hit this past May during the hype surrounding the Facebook IPO.

-- Staff writer Ben Rooney contributed to this report

Recently Published by The Skanner News

  • Default
  • Title
  • Date
  • Random
  • Russian hackers likely responsible for hacking attack on Clinton HARRISBURG, Pa. (AP) — Giddy if exhausted, Hillary Clinton embarked on a post-convention Rust Belt bus tour just hours after becoming the first female presidential nominee of a major political party. The celebratory mood quickly evaporated amid fresh revelations that hackers had breached a program used by her campaign and Republican nominee Donald Trump promised to sharpen his barbs. "Remember this," Trump said during a rally Friday in Colorado Springs, Colorado. "Trump is going to be no more Mr. Nice Guy." And for the first time he encouraged his supporters' anti-Clinton chants of "lock her up." "I've been saying let's just beat her on Nov. 8," Trump said, "but you know what? I'm starting to agree with you." About an hour later, Clinton aides acknowledged that a hacking attack that exposed Democratic Party emails also reached into a computer system used by her own campaign. The FBI said it was working to determine the "accuracy, nature and scope" of the cyberattacks. Campaign spokesman Nick Merrill said the newly disclosed breach affected a Democratic National Committee data analytics program used by the campaign and other organizations. Outside experts found no evidence that the campaign's "internal systems have been compromised," Merrill said, but he gave no details on the program or nature of the attacks. Partnerships with modern e-commerce companies can allow sophisticated tracking, categorization and identification of website visitors and voters. President Barack Obama and cybersecurity experts have said Russia was almost certainly responsible for the DNC hack. The House Democratic campaign committee reported Friday that its information had been accessed. The developments followed the leaking of DNC emails earlier in the week that pointed to a pro-Clinton bias by party officials during her primary contest against Bernie Sanders. In the furor that followed, party chairwoman Debbie Wasserman Shultz resigned just as Democrats launched their convention. Clinton and her running mate, Sen. Tim Kaine of Virginia, will attempt to return attention to their positive economic message on Saturday, with campaign stops through economically struggling areas of Pennsylvania and Ohio. "When we take that oath of office next January, we know we can make life better. We know we can create more good jobs," she told voters gathered at an outside market in Harrisburg, Pennsylvania. Clinton cited an economic analysis by economist Mark Zandi, a former economic adviser to 2008 Republican presidential nominee John McCain, that found more than 10 million jobs could be created in her first term if her economic proposals were put in place. Zandi's analysis of Trump's plans found they would cost the country 3.5 million jobs and lead to a "lengthy recession." Joined on the bus tour by her husband, Bill Clinton, Kaine and his wife, Anne Holton, Clinton stopped at a toy and plastics manufacturer in Hatfield, Pennsylvania, where she and Kaine cast Trump as a con artist out for his own gain. "We don't resent success in America but we do resent people who take advantage of others in order to line their own pockets," Clinton said. Trump is also focusing on Ohio and Pennsylvania, two states where he might make headway with blue-collar white men. That group of voters has eluded Clinton and may be a hard sell after a Democratic convention that heavily celebrated racial and gender diversity. Clinton is playing up economic opportunity, diversity and national security. Democrats hammered home those themes this week with an array of politicians, celebrities, gun-violence victims, law enforcement officers and activists of all races and sexual orientation. Their goal is to turn out the coalition of minority, female and young voters that twice elected Obama while offsetting expected losses among the white men drawn to Trump's message. Democrats continued contrasting their optimistic message with the more troubled vision of the state of the nation presented by Trump and others at the GOP convention a week earlier. Kaine called the "very dark and negative" event a "journey through Donald Trump's mind." "That's a very frightening place," he told thousands of supporters in Philadelphia. Clinton told voters that they faced a "stark choice," calling the coming election the most important one in her lifetime. "This is a moment of reckoning for our country. I don't recognize the country that Donald Trump describes," she said.___Lemire reported from Colorado Springs, Colorado. Associated Press writer Eric Tucker in Washington contributed to this report.
    Read More
  • Six current or former state employees were charged Friday with misconduct and other crimes in the Flint water crisis 
    Read More
  • Hillary Clinton cast herself as a unifier for divided times, an experienced leader steeled for a volatile world 
    Read More
  • The Portland Harbor Community Coalition wants a more intensive cleanup and more time for public comment  
    Read More
load morehold SHIFT key to load allload all