Facebook is currently worth $346.1 Billion. That puts them in the top 5 most valuable companies in the world. Mark Zuckerburg, the CEO and Harvard dropout, is worth a staggering $51.7 billion (Forbes). That puts him at the 6th wealthiest person on the planet. The best part is – he’s only 32 years old. So how could Mark Zuckerberg become a trillionaire?
If you took Mark’s $51.7 Billion and invested it at 10% for 30 years – you would have $902,134,097,301.46. That’s only $100 Billion short of a Trillion! But hey – who’s counting?!
Mark has been the figurehead for the millennial generation, proving that anyone can solve a problem and make BILLIONS while doing it. So why will Mark Zuckerburg become the first trillionaire? Like any great investor, Mark sports a diversified portfolio that’s growing exponentially.
Facebook owns 4 of the most downloaded apps in the App Store:
Facebook, WhatsApp, and Messenger are all used by 1 billion users a month. This number will continue to expand as the Internet becomes ubiquitous. With the launch of internet.org, Zuckerberg has committed to implement global connectivity. Facebook recently launched a solar plane that will provide internet access in remote locations. Apparently, these planes will be able to self-sustain in the air for MONTHS. Check out the video here!
Once Mark provides internet access to the world – he can connect them with his services. Once they’re using his services – he has their data. And most importantly, Zuckerberg is excellent at turning data into profit.
Here’s a brief summary of Facebook’s most valuable assets:
Instagram has grown from 27 million monthly users (when it was purchased) – to 500 million monthly active users. The visually appealing filters and ease of browsing bring in the younger user base that Facebook lacks. Instagram is a catch because of its staggering engagement rates. But, the one aspect of social media Instagram misses out on is sharing (natively). It’s a social media anomaly!
Instagram will undoubtedly implement some sort of sharing to increase the platforms viral capacity down the road. I believe this was one of the smartest tech acquisitions of the decade thus far. Depending which estimates you look at, Facebook purchased Instagram for somewhere between $715 Million – $1 Billion. Experts say it’s worth somewhere north of $37 billion today. Not a bad return on investment for 4 years.
Today, you don’t even need a Facebook account to use Messenger. The transition was highly scrutinized at the time – but ended up being a great long-term strategic move. It positioned Messenger as an all in one communication tool – and a powerful platform on its own. It gives everyone the ability to communicate with friends from all over the world for the very low price of FREE.
As Facebook looked to expand their influence – they needed to look at global markets. Facebook was looking to expand their presence in Europe, Africa, and Asia – and an international messaging platform was the perfect target. The acquisition of WhatsApp was all about DATA – the revenue driver of the 21st century. WhatsApp sends more pictures than Facebook – and that’s an opportunity Zuckerberg couldn’t pass up. People are having ‘private’ conversations on WhatsApp, and talking about topics that are not yet trending. Zuckerburg wants to know what you’re talking about behind closed doors so he can advertise accordingly. WhatsApp was purchased for $21.8 Billion in cash and stock.
Oculus is one of the up and coming virtual reality technologies on the market. Facebook licensed the Oculus software to Samsung – and put their own consumer hardware out as well. If you haven’t looked into virtual reality, the time is NOW. In the next 5 years, it will have an impact on nearly every industry (including education, healthcare, sports, and entertainment, just to name a few). But, don’t be fooled, there are competitors like Sony (Play Station – Project Morpheus) and Microsoft (HoloLens) to give Oculus a run for its money. The Augmented and Virtual Reality industry is expected to hit $150 billion by 2020. Facebook purchased Oculus for a little over $2 billion.
What the Future Holds
There is no doubt that Mark Zuckerburg schemes how he can change the world on a daily basis. He has things up his sleeve that people can’t even fathom. He has the power to accomplish ANYTHING he sets his mind to. And most importantly, he knows that standing still is detrimental in the age of technology.
In interviews, Mark has talked about developing telepathy so that users could send thoughts. This is a topic I’ve been thinking about since high school! When I heard Zuckerburg wanted to send thoughts – I knew he was the one who could get the job done. Communication is the cornerstone of our civilization – and this is the ultimate innovation. It’s a ‘far out’ concept. But in today’s world – far out isn’t as distant as we once thought.
Zuckerburg has created a TON of momentum with Facebook today. Videos go viral in a matter of minutes. Groups, pages, and live video have gained significant influence in 2016 alone. And facial recognition, as well as other software acquisitions, have allowed Facebook to become a well-oiled machine.
Although the platform is strong, Facebook will inevitably need to expand to other industries if they plan on hitting a TRILLION dollars.
When looking for buyouts – Facebook will look to vertically integrate their product offerings by leveraging the data they already have. Here are a few industry acquisitions I could see Facebook making in the next 5 years:
- Review Sites like Angie’s List or Yelp
- File Storage Platforms like Box or DropBox
- Payment Interfaces like Paypal or Stripe
- Gaming Companies like Nintendo or Sega
- TV Networks like CBS or TNT
- E-commerce Applications like Groupon or QVC
- CPC / PPC Advertising Networks like Infolinks and Revcontent
Mark Zuckerburg will become the richest person in the world in the next 30 years – there’s no doubt in my mind. The man controls a large portion of the data we use and see every day. He has created the largest media conglomerate in the world – and doesn’t produce any media. Facebook has changed how we celebrate holidays and mourn losses. It’s altered marketing, communication, presidential elections, and how we consume trending topics. Zuckerberg is the man on a mission to connect the world – and he won’t let us down.
International investment bank Credit Suisse stated in an annual Global Wealth Report that there will be 11 trillionaires within 2 generations. Who do you think will be the first trillionaire? Who do you think will be in the top 10? What companies should Facebook acquire in the next 5 years to help them hit that plateau? Let me know in the comments below!