The CEO and chairman of the world’s largest social media company, Mark Zuckerberg, is worth $100 billion. He is the youngest person to join the $100 billion club. The only other people with a net worth higher than Mark’s are Jeff Bezos and Bill Gates.
Mark’s net worth increased by a whopping $22 billion in 2020 alone. This surge in his wealth resulted after Facebook’s shares value soared by 30%. Mark holds a 13% stake in Facebook’s stocks.
Recently, Facebook rolled out Reels on Instagram. Reels is a new feature meant to compete with TikTok. The launch saw Facebook’s shares soar by 6.5%, propelling Mark’s net worth to $100 billion.
TikTok troubles and Facebook’s approach
The launch of Reels came at a time when TikTok was facing an impending ban. The president of the United States, Donald Trump, issued an executive order banning TikTok’s operation in the US if it isn’t sold to an American company.
Several companies, including Microsoft and Twitter, have shown some interest in TikTok. Up to now, there has been no deal brokered between TikTok and a buyer. Facebook’s approach to the situation was creating a competing app rather than buy it.
TikTok’s CEO expressed his displeasure with Facebook’s Reels. He daunted those planning to compete with the short video app to bring on the fight. Further, he dismissed Reels as a copycat product.
Facebook’s good performance
Amid the Coronavirus pandemic wreaking havoc across the world, Facebook continues to post more profits. The company notes that “stay at home” orders and pleas favor the increase in member engagement on Facebook. On August 6, the company reported that it had three billion people using its platform.
Marks Zuckerberg started Facebook in his dorm room with the help of a few friends back in 2004. The company snowballed, garnering six million members in less than two years. Today, Facebook is worth over $749 billion. Mark Zuckerberg owns a 13% stake in the company, making him the third wealthiest person on earth.
While 2020 has been a good year for Facebook so far, it hasn’t been without its bumps. June and July saw the company’s stock take a downward dive, and Mark’s wealth decreased by a little over $9 billion. The cause of the share value decline was a boycott on Facebook ads.
Some organizations felt that Facebook was not doing enough to remove hate-speech content. They responded by urging people to halt making payments towards Facebook ads. Facebook defended itself, citing the huge investments and efforts it makes towards moderating hate-speech.
Launching Reels on Instagram proved to be a game-changer. The move shot Facebook’s stock up by 6.5%, making Mark net worth soar to $100 billion in the process.
How Mark uses his wealth
Even after joining the ultra-rich of our planet, Mark is not about flaunting his wealth. The 36-year-old father of two dresses simply and drives cars that appear inexpensive by his standards.
However, he spends a considerable amount of money on real estate. Mark has spent hundreds of millions of dollars buying and renovating land and houses. His property collection includes a $7 million home, a townhouse, and $100 million worth of property on the Island of Kauai.
As for his Facebook fortune, which rises by approximately $9 billion every year, Mark intends to give it all away – well, 99%. He signed the Giving Pledge in 2010, assuring that most of his wealth will go to help charitable causes. To date, 204 billionaires are signatories of the Giving Pledge.
To make good on his promise, Mark has already made steps towards donating his wealth. In 2017, he declared his intentions to sell between 35 to 75 million of his Facebook shares. This sale would enable him to donate up to $12 billion. Mark channels his donations through the Chan Zuckerberg Initiative, an organization he founded with his wife.