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Published 03 August 2012 17:54, Updated 06 August 2012 00:07
Facebook founder Mark Zuckerberg’s fortunes are still closely tied to the company he created. Photo: AFP
Facebook founder Mark Zuckerberg’s $US423 million one-day wealth plunge has also dropped him out of Bloomberg’s Top 10 tech billionaires list.
Shares in Facebook dropped 4 per cent to $US20.04 on the NASDAQ on Thursday following the announcement of the company’s June quarter result, lopping the young tech mogul’s personal fortune to around $US10.2 billion in the process.
The drop was enough to allow SAS Institute’s James Goodnight and his $US10.6 billion fortune to take Zuckerberg’s 10th place in the Bloomberg tech billionaires index.
Zuckerberg owns 503.6 million shares in Facebook, including 60 million options that have an exercise price of US6¢, Bloomberg reported. He also has a $150 million pile of cash and other assets.
Facebook shares are now changing hands for just over $US20, well down on the $US38 they listed for during the company’s disasterous initial public offering in May, which itself burned $US1.6 billion of Zuckerberg’s wealth.
Bureaucrats in California’s Legislative Analyst Office warned that the state’s revenue projections were now in jeopardy thanks to the decline in Facebook’s fortunes since listing.
The company’s float and related transactions was expected to add $US1.9 billion to the state’s coffers, Reuters reported. But that figure had been based on a share price of around $US35, the report said.
“The bottom line is that the lower the stock price is the lower (state) revenue is,” deputy legislative analyst Jason Sisney said.
As part of its June quarter reporting, Facebook revealed that 8.7 per cent of its 955 million users were actually fake accounts. Zuckerberg’s previous estimates had been for around 5 per cent of accounts being fake.
For the three months to June, Facebook reported a loss of $US157 million on revenue of $US1.18 billion, a result just ahead of Wall Street expectations.
According to the Bloomberg Billionaires Index, Bill Gates remains the world’s richest tech billionaire, with a $US61.6 billion fortune, followed by Oracle’s Larry Ellison, who has $US38.2 billion.