Introduction to Mark Zuckerberg
Let me introduce you to Mark Zuckerberg, a self-taught computer programmer who co-founded, chairs, and serves as CEO of Meta, which was formerly known as Facebook. He started what was originally called Facemash in his Harvard dorm room back in 2004, working alongside Andrew McCollum, Dustin Moskovitz, Chris Hughes, and Eduardo Saverin.
As of June 10, 2022, Bloomberg estimates his net worth at around $68.2 billion. You should know that Facebook boasts 2.93 billion monthly active users as of the first quarter of 2022, making it the world's largest social network.
Early Life and Education
Mark Zuckerberg was born on May 14, 1984, in White Plains, New York. From a young age, he displayed a strong interest in computers; he learned BASIC programming at a local college and, at just 12 years old, created an instant-messaging app that his father used in his dental office.
He went to Harvard University but left after his sophomore year to dedicate himself to developing Facebook. This platform evolved from earlier projects like FaceMash, which ranked the attractiveness of Harvard students, and HarvardConnection.com, a social networking site.
In 2004, the credited founders of HarvardConnection.com—Cameron and Tyler Winklevoss along with Divya Narendra—sued Zuckerberg, claiming he stole their intellectual property. They settled in 2008 for a multi-million dollar amount in cash and stock options. The Winklevoss twins attempted to reopen the case in 2011, but the court rejected their request.
Notable Accomplishments
Turning to his achievements, in mid-2005, Facebook secured $12.7 million in venture capital and expanded to hundreds of universities and high schools. By the next year, it opened to the public, and Yahoo! made a $1 billion offer to buy it, which Zuckerberg turned down without hesitation.
In 2012, Facebook's IPO raised $16 billion, marking it as the most successful internet IPO ever. That same year, they acquired Instagram, and Zuckerberg married Priscilla Chan in a surprise ceremony the day after the IPO.
Meta has since acquired numerous companies, including Instagram for $1 billion in 2012, WhatsApp for $22 billion in cash and shares in 2014, Oculus VR for $2 billion in 2014, and others in AI and identification tech.
Wealth and Philanthropy
Zuckerberg has gained attention for his wealth and giving. In 2010, he donated $100 million to Newark, New Jersey schools. Philanthropy magazine ranked him and Chan as the top American donors in 2014 after they gave 18 million Facebook shares to the Silicon Valley Community Foundation.
On December 1, 2015, they wrote a letter to their daughter Max announcing the Chan Zuckerberg Initiative, aimed at advancing human potential and equality for the next generation. Their focus areas include personalized learning, curing disease, connecting people, and building strong communities. They committed to donating 99% of their Facebook shares—valued at about $45 billion at the time—over their lifetimes to this cause.
Controversy and Cambridge Analytica
Meta has faced accusations almost from the start of collecting and selling user data, posts, and messages. These issues intensified after the 2016 U.S. elections, with claims of Russian-financed targeted ads influencing voters.
In March 2018, reports from The New York Times and The Observer revealed that Cambridge Analytica had obtained data on 50 million Facebook users without permission through an outside researcher, using it for psychographic modeling to influence elections. It later emerged that 87 million users' data was shared improperly.
In April 2018, Zuckerberg testified before Congress on Facebook's data practices. He highlighted positive uses like connecting people during the #MeToo movement and disasters, and stated that Facebook learned of Cambridge Analytica's actions through the media. He outlined steps to safeguard the platform, investigate apps, and improve controls.
How Facebook Makes Money
You might wonder how Facebook generates revenue—primarily through advertising. The company sells ad space on platforms like Facebook, Instagram, and WhatsApp. Users can also pay to promote their pages or posts, which counts as advertising. For instance, Instagram's ad revenue was estimated at $25 billion in 2021.
Zuckerberg's Net Worth and Salary
As mentioned, Zuckerberg's net worth stands at $68.2 billion as of June 10, 2022, derived mainly from his role as Meta's founder and largest shareholder. Technically, his salary at Facebook is $1 per year, but his wealth comes from Meta shares, positioning him among the world's richest individuals.
The Bottom Line
In summary, Zuckerberg launched Facebook from his dorm, transforming it into a global giant. Through Meta and acquisitions like Instagram and WhatsApp, he influences how billions consume content and interact.
Other articles for you
Normal profit is when a company's revenues exactly cover both explicit and implicit costs, resulting in zero economic profit.
The federal income tax is a progressive tax levied by the IRS on various forms of earnings to fund government programs and services.
The UTXO model tracks unspent cryptocurrency outputs to manage ownership and transactions in blockchains like Bitcoin.
A hockey stick chart shows a sharp increase after a period of stability, resembling a hockey stick shape.
The debt-to-capital ratio measures a company's financial leverage by dividing its interest-bearing debt by total capital.
Water damage insurance covers sudden and accidental water-related incidents in homeowners policies but excludes negligence, poor maintenance, and floods.
Asset/liability management is the practice of managing a company's assets and cash flows to minimize risks associated with meeting liabilities on time.
Modified duration measures how much a bond's price changes with a 1% shift in interest rates, building on Macaulay duration to help investors assess risk.
This text explains what cryptocurrency wallets are, how they function, their types, security aspects, and comparisons of the best ones.
A back stop is a financial mechanism where an underwriter or major shareholder agrees to buy any unsubscribed shares in a securities offering to ensure the issuer raises the required capital.