The Meta platforms ( Meta ) is seventh largest company in market capitalisation, with $1.48 trillion dollars market capitalisation .
Meta Inc previously known as the facebook Inc is the one of the most successful , popular and profitable company in the world . the company that lead social media sector . one of the most usage thing in the world . with market capitalisation of $1.48 trillion dollars Meta stand seventh in world market capitalisation companies list .
Key points
- About Mark Zuckerberg
- How facebook Started ?
- How facebook earn money ?
- How facebook grow from scratch?
About Mark Zuckerberg
Mark Elliot Zuckerberg was an enterpreneur of America and also we all know him for creating facebook .
Mark Elliot Zuckerberg was born in May 14 , 1984 in pate white plains , New York . his father Edward Zuckerberg was dentist and his mother Karen Edward was psychiatrist . so basically he belongs to middle class family .
In young age he is very smart . he always doing something in computer , like finding something in it . learn coding and other things . when he is 11 year old he created one programme ” Zucknet ” . basically a programme that gives you facility of communication with Internet in special place like home and office.
In young age he learn alot of about computers and coding. one time the New Yorker said that ” some kid’s played computer games , Mark created them ” .
How facebook Inc Started ?
Just like other kid’s Mark Zuckerberg wanted to complete college from famous university and he is lucky that he selected for harvard . during the time of Harvard University mark famously known as programmer . he created so many programmes and in that programme one is ” facemash ” . basically a program that gives you two photos and you select who look more attractive .
Facemash was shut down because some student’s complain that Mark use their photos without their permission and also professor don’t like this . but we can say that this is the foundation of facebook . because when Mark get positive response from user than he start coding and in just one week he improve programme and created The facebook .
In January 4 , 2004 Mark Zuckerberg and his friends Chris Hughes, dustin moskovitz, Andrew Mccoolum, Eduardo saveine launched the TheFacebook company .
But there is also some intresting story that some student’s of Harvard say that Mark copy their Idea and make TheFacebook . they say that thay appoint Mark for making code for their programme and he take their idea and created programme . by the way at the end settlement done between them .
For focusing more on this idea mark left the college and shift their office to palo alto, california. in June 2004 he became the president of TheFacebook .
TheFacebook was the first name of the company but after one year in 2005 Mark change name as facebook.com . this domain already registered, so he purchase this domain for owner in exchange of $2,00,000 USD.
Expansion and new investor’s
Facebook grow day by day and mark now spread this programme in all over universities of US and Canada . people like this Idea they share images and make friends and do communication with them .
This thing also attracted the investors . now investor’s start investing in Mark Zuckerberg idea .
Investment in facebook
- Accel partners $13 Millions in May 2005
- Jim breyer added $1 million
- Microsoft purchased 1.6 % share of facebook for $240 Millions dollars .
- Yuri milner and Russian metals magnate Alisher Usamanov invest $200 million in May 2009 .
When microsoft invest in facebook at that time total valuation of company estimated as $15 Billion dollars . this thing make facebook one of the top 5 tech companies in USA .
In July 2010 company announced that they cross 500 million user’s worldwide . and in October 2010 company valuation estimated $41 Billion dollars . now facebook become third largest company in usa after goggle and amazon .
IPO ( Initial Public Offering )
In 18 may 2012 facebook Inc decided to release IPO and set $38 dollars price for per share . this IPO was game changer because this is the third most largest IPO after Visa Inc (2008 ) and AT&T wireless ( 2000 ) in US history . company raise $16.45 Billion dollars from stock market .
After IPO release the Market value of company increase to $104 Billion dollars . in 2012 facebook Inc generate more than $5 Billion dollars profit . this thing show that company are getting profit and grow sustainably .
Now the price of shares are decided by performance of company. how company grow , how many users they have and etc . so in 2012 facebook Inc announced that they cross 1 Billion active user’s worldwide . now total 219 Billions photo’s are uploaded on Facebook at that time .
So basically company wants to show that they growing and people beleive in them . in February 2014 after the 10 year’s of facebook Inc journey company reach $ 200 Billion market valuation .
Companies acquired by facebook Inc
Today we all know facebook Inc not Just for Facebook but also apps like instagram, whatsapp and many more app’s . for your information this all app’s are not build by facebook but some app’s company purchased from other’s .
So here is the list of companies and apps purchased by facebook Inc .
- News aggregator friends in August 2009 for undisclosed amount
- Divyshor ( photo sharing platform ) in April 2 , 2010 for undisclosed amount
- Instagram in April 12 , 2012 for $1 Billion dollars ( Cash and stocks )
- Onavo ( An israel analytic company) in October 13 , 2013 for $120 Million dollars ( cash and stocks )
- WhatsApp ( instead messaging app ) in Feb 19 , 2014 for $19 Billion dollars ( Cash and stocks )
- Oculus VR ( Virtual reality startup) in 25 march 2014 for $2 Billion dollars ( Cash and stocks)
We see that there is somany companies facebook Inc buy . so basically when company growing at that time he face competition from other companies . to avoid competition and maintain your position in your market you have two choice acquired other company or doing better than them . acquiring is easy and fast way to avoid competition .
Concept of metaverse
In Oct 28 , 2021 company renamed as the Meta platforms that show the future long term goal of company . the Meta Verse where people can interact with eachother in virtual reality .
Basically facebook Inc doing somany things like work on virtual reality, social media and AI so they create upper body for that and named as Meta platforms . now company combined all this thing’s and creat meta Verse .
After one year company face loss in market capitalisation . after they decided to rename now company face negetive effect of it . company value decline $230 Billion dollars and Mark Zuckerberg loss his $32 Billion dollars wealth .
This is the biggest downfall in company history . but there is also some other reasons like popularity of tiktok app and allegations made on company . so this period of time is very tough because in this time company laid of more than 25000 employee’s .
For coming out of it company now started focus on AI race . and put majority of his money on AI reserch and development .
AI and threads
Meta platform launched thread in July 6 , 2023 for competing against twitter . and also announced that they give AI model Llima 2 for commercial use . all thing’s show that company now majorly focus on AI.
In January 2024 company become seventh $1 Trillion dollars market capitalisation company . Also after all this thing’s wealth of mark zuckerberg increase and in present time he have $209.4 Billion dollars wealth .
How really Meta platform earn money ?
In 2024 Meta platform generated around $164. 5 Billion dollars revenue $30 Billion more than previous year . yes Meta platform is in profits side but how really company earn money ?
Online advertising
More than 95 % of Meta platform revenue is come from online advertising . Meta collect user’s data and from that data they show advertisement on your feed . according to your search and interest company show you related ads.
Other companies who want to make their brand image and sale products they pay money for it to facebook, google and other tech companies and they show their advertisement on your feeds . that’s how all this online advertising work .
For your information there is $772.40 Billion dollars global market of advertising . that means companies spend over $772.40 Billion dollars advertising.
Other ways
If you want Blue tick on your account then you have to pay some amount to Meta . also meta charge those companies who use whatsapp for their business. also they sale VR box and other items. also in some apps you need to pay some subscription for some extra features.
In all this thing’s company earn other 5 % of their income .
Conclusion
If we think little deeper than we realise that facebook or meta is just an idea. the idea that shape social media business , the idea that create one of the most successful company in the world . with hard work and passion mark transform an idea into reality .
