Social-media billionaires lose fortunes
The founders of Facebook, Groupon and Zynga watch their on-paper wealth plummet as investors flee their companies' stocks.
Facebook (FB) shares are down 47% from their $38 IPO price in May, closing Thursday at just $20.04. Groupon (GRPN) shares have plunged 68% from their IPO price to close at $6.38, and Zynga (ZNGA) shares have fallen 73% to just $2.70.
Those sharp price drops have taken huge chunks out of the on-paper fortunes of social media kingpins.
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Robert Frank of CNBC estimates that some of their losses range from 40% to 80% -- drops that were much more severe than what was seen even in the dot-com bust of 2000.
Here's what happened to the wealth of three social media founders, according to Frank:
Mark Zuckerberg, CEO of Facebook
Zuckerberg's net worth was $19.1 billion right out of the gate on Facebook's first day of trading, and climbed to $20 billion during the stock's initial frenzy. But Facebook shares have crashed, leaving Zuckerberg more than $9 billion poorer. Zuckerberg owns 503.6 million Class B shares and controls nearly 58% of the voting power at the company.
Andrew Mason, CEO of Groupon
His fortune down more than 75% to $300 million as investors have grown increasingly skeptical of Groupon's potential.
Mark Pincus, CEO of Zynga
His stake has fallen to around $270 million from more than $1 billion in the salad days. But Pincus made an early cash grab last April, selling 16.5 million shares at $12 a share for about $200 million. Hopefully he didn't plow that money into shares of Facebook or Groupon.
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