Mark Zuckerberg Has Offered Fb Inventory Virtually Each Weekday This 12 months
Facebook CEO Mark Zuckerberg last week in Sun Valley, Idaho.
After a year of never letting go of Facebook shares, Mark Zuckerberg is returning to his selling habits.
Since November 9, 2020, the Facebook co-founder and CEO has dumped $ 127 billion worth of shares almost every business day, according to filings with the Securities and Exchange Commission. In total, he has sold 9.4 million shares valued at $ 2.8 billion in the past eight months through Wednesday. About 90% of sales were made by its philanthropic and advocacy organization, the Chan Zuckerberg Initiative (CZI). A smaller portion – about $ 200 million after tax, according to Forbes estimates – went into his own pockets. Zuckerberg, the fifth richest person in the world, has now increased his stake in Facebook to around 14%, up from 28% when the company went public.
Since Facebook went public in May 2012, Zuckerberg and CZI have sold more than 132 million shares in the social media giant, valued at nearly $ 15 billion. Forbes estimates that he personally pocketed around $ 2.1 billion after taxes. Zuckerberg consistently began selling Facebook shares in 2016, a year after he and his wife Priscilla Chan founded CZI. At the time, the couple wrote a letter to their unborn daughter pledging to donate 99% of their Facebook shares to areas such as education and curing diseases during their lifetime; the shares were worth $ 45 billion at the time. Zuckerberg and CZI’s sales peaked in 2018 when they sold $ 5.3 billion worth of shares – the vast majority through CZI.
But Zuckerberg stopped selling in November 2019 and, through CZI, donated just a single donation of 204,700 shares worth $ 60 million last year to the Silicon Valley Community Foundation (SVCF), a nonprofit based in Mountain View, California, which operates among other things on a donation basis for charitable causes. By 2018, Zuckerberg and Chan had donated nearly $ 2 billion worth of Facebook shares to SVCF.
A spokesman for the Chan Zuckerberg Initiative didn’t explain why Zuckerberg stopped selling and resumed a year later, but said its sales are made according to pre-established plans filed with the SEC. These plans, known as 10b5-1 plans, allow business executives to sell stocks on a regular basis and are fairly common among executives with large company equity positions.
Despite some tumultuous years of Facebook coming under fire for allowing data collection from its users, spreading misinformation on the platform, and spreading hate speech – resulting in an advertising boycott by more than 1,000 companies – the company’s stock has continued to rise . After a federal court dismissed two antitrust lawsuits filed by the Federal Trade Commission against the tech giant on June 28, shares in California-based Menlo Park closed at a record high of $ 355.64. Since then, the Facebook share has continued to trade at a similar level; Its current stock price is up more than 800% compared to when it went public nine years ago when Zuckerberg was worth $ 16.9 billion. The stock has been in turmoil since March 2020 in particular and has more than doubled in the past 17 months.
The vast majority of Zuckerberg’s Facebook share sales – an estimated $ 11 billion – were made by the Chan Zuckerberg Initiative, mostly through CZI Holdings, a limited liability company or the CZI Foundation, the initiative’s nonprofit grant arm. CZI has made $ 2.9 billion in grants and invested $ 150 million in for-profit companies since 2015, according to its website. (The remainder of the proceeds will likely be invested elsewhere by CZI and used to fund the organization, which has more than 200 employees.) In 2016, Priscilla Chan announced that CZI would spend $ 3 billion over a decade on attempting to cure all diseases. “We believe that we can cure, prevent, or treat any disease while our children are alive,” Chan said at the time. “That doesn’t mean nobody gets sick, but they should get sick a lot less.” It is unclear how far CZI has achieved this ambitious goal.
Late last year, Chan Zuckerberg Initiative Advocacy – CZI’s political advocacy group – sold all 103,000 of the remaining Facebook shares it held. According to data from the Center for Responsive Politics, CZI Advocacy has donated $ 17.8 million to left-wing electoral initiatives, primarily in California, since 2018.
Zuckerberg’s stock sales over time are common among founders who have listed their companies on the stock exchange, and are similar to those of his tech mogul counterparts. Amazon founder Jeff Bezos reduced his stake from 42% in the first nine years after IPO to 24% and sold approximately $ 500 million worth of shares, while Google founders Larry Page and Sergey Brin took their 16% stake. period reduced to around 7% in the same period.
In relative terms, however, Zuckerberg has sold far fewer Facebook shares (in dollars) than Bezos has sold from Amazon overall. Since Amazon went public in 1997, Forbes has calculated that Bezos has sold nearly $ 27 billion worth of pre-tax Amazon shares. He sold $ 10 billion of that total last year. That makes Zuckerberg’s $ 2 billion turnover seem meager. Bezos’ stake in Amazon is 10% today, having ceded a quarter of its then 16% stake to ex-wife MacKenzie Scott in the most expensive divorce in history in 2019. Still, the former Amazon boss, who stepped down from office earlier this month, is the richest person in the world.
About 98% of Zuckerberg’s estimated $ 127 billion net worth is still in his Facebook stocks. The remainder comes from stock sales as well as a real estate portfolio valued at $ 200 million and includes properties in Palo Alto, California, Hawaii and Lake Tahoe. Zuckerberg spent more than $ 100 million to buy 700 acres of land on the Hawaiian island of Kauai in 2014, then added an additional 600 acres for $ 53 million in May, according to a report by Mansion Global.