Zuckerberg falls from tech’s wealthiest list as Facebook shares wilt

New York: Facebook Inc. co-founder Mark Zuckerberg is no longer among the world’s 10 richest technology billionaires.

The 28-year-old’s fortune dropped by $423 million (Dh1.55 billion) yesterday as shares of the world’s largest social media company fell 4 per cent to $20.04 in New York, a record low. Zuckerberg is now worth $10.2 billion. He is about $400 million behind James Goodnight, the co-founder of Cary, North Carolina-based software maker SAS Institute Inc., who now ranks as technology’s 10th-richest person, according to the Bloomberg Billionaires Index.

“From an emotional standpoint, he might care,” Ron Florance, managing director of investment strategy for Wells Fargo Private Bank, said in a telephone interview from North Carolina. “He’s much more worried about maintaining Facebook’s market share in the social media space than the day-to-day valuation swings of his company stock. He’s not worried about going broke.”

Facebook shares have fallen 47 per cent from their initial public offering (IPO) price of $38. The Menlo Park, California-based company last week reported earnings that showed slowing revenue growth.

Zuckerberg’s fortune is based on his ownership of 503.6 million shares of Facebook, including 60 million options that have an exercise price of 6 cents a share. He also has about $150 million in cash and other liquid assets.

Goodnight, 69, co-founded SAS in 1976, and is worth $10.6 billion. The company is the world’s largest closely held software maker and generated revenue of $2.7 billion in 2011, up 12 per cent in a year.

SAS is valued at $15.8 billion, according to data compiled by Bloomberg. The valuation is based on the average enterprise value-to-earnings before interest, tax, depreciation, and amortisation multiple of five publicly traded peers. A premium has been applied, based on recent transactions in the software industry.

Goodnight, who holds two-thirds of SAS, also co-owns the Prestonwood Country Club in Cary, North Carolina, and has collected dividend payments over more than three decades.

Microsoft Corp. co-founder Bill Gates is the richest technology billionaire in the world with a net worth of $61.6 billion, according to the index.