Report: Facebook CEO Mark Zuckerberg drops off world's 40 richest people list
(CBS/AP) At 28 years old, Mark Zuckerberg had been among the youngest-ever members of world's 40 richest people list. His youthfulness should now give him plenty of time to rejoin the most elite ranks of the uber-rich, following reports of his slip from the rankings Tuesday.
According to the Bloomberg Billionaires Index, Zuckerberg dropped out of the Top 40 when shares of his newly-public company hit a low of $28.84 after trading on Tuesday. He was replaced on the list by Mexican billionaire Luis Carlos Sarmiento.
The Facebook CEO's fortune fell to $14.7 billion on Tuesday from $16.2 billion on May 25, Bloomberg reports.
Zuckerberg's pocketbook isn't alone in taking a hit. Four of the 20 youngest billionaires in the world can attribute their fortunes to Facebook's success, according to Forbes. In addition to Zuckerberg, Dustin Moskovitz (Facebook's third-ever employee), Sean Parker, and co-founder Eduardo Saverin, all have their billionaire fortunes tied to Facebook's financial health.
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Facebook began trading publicly on May 18 following one of the most anticipated stock offerings in history. The stock priced at $38 a day before the company's public debut. The company's market capitalization has since decreased $25 billion in its first seven days of trading.
The launch was from far from smooth. The stock's public debut was marred by technical glitches at the Nasdaq exchange that delayed trading. And the company, along with the investment banks that led the IPO, is the subject of shareholder lawsuits.
The investors allege that analysts at the the investment banks, including lead underwriter Morgan Stanley (MS), cut their financial forecasts for Facebook just before the IPO and told only a handful of clients. Morgan Stanley has declined to comment. Facebook says the lawsuits are "without merit."