Who Owns Zoom: The Largest Shareholders Overview

Article Teaser: Who Owns Zoom: The Largest Shareholders Overview

Zoom Video Communications, Inc. (ZM) makes money mainly by selling subscriptions to its Zoom communication platform to businesses. Zoom also offers paid plans for individuals and free plans with limited functionality. Its business experienced rapid growth during the COVID-19 pandemic. Let’s now look at who owns Zoom and who controls it.

The largest shareholder of Zoom Video Communications, Inc. is its founder Eric Yuan, with an 8% ownership, followed by T. Rowe Price (6%), Bin Yuan and Cathy Wang (6%), and Li Ka-Shing (5%). However, thanks to “super-voting” shares, Eric Yuan holds 29% of all votes.

 Zoom's Largest Shareholders (Dec 2021)
Shareholder Ownership Voting Power
Eric Yuan 7.7% 28.9%
T. Rowe Price 6.2% 2.3%
Bin Yuan and Cathy Wang 5.6% 2.1%
Li Ka-Shing 4.6% 1.7%
Vanguard 4.4% 1.6%
Solina Chau 3.2% 11.8%
Emergence Capital 2.2% 8.1%
Other 66.2% 43.4%
Listed are shareholders holding >5% of any share class or notable in other ways
   Source: Multiple SEC filings

Zoom largest shareholders by share ownership and vote control (donut chart) Zoom largest shareholders by share ownership and vote control (donut chart)

The largest shareholder of Zoom is its founder, CEO, and chairman of the board Erik Yuan. He and several other pre-IPO shareholders hold super-voting Class B shares that give them outsize voting power.

You can also see asset managers T. Rowe Price and Vanguard among the company’s large shareholders. But it is to be expected.

One of the sizable shareholders is also Li Ka-Shing, Hong Kong’s richest man.

Interestingly, Solina Chau, Li Ka-Shing’s close friend, and business partner, is also on the list of shareholders with a smaller stake but of super-voting shares. That makes Solina Chau the second largest shareholder according to voting power.

  • Ms. Chau, in the older 2019 SEC filing, disclaimed having beneficiary ownership of Zoom despite being the sole shareholder of company Puccini World Limited which owns the stake in Zoom. This disclaimer did not appear in more recent fillings anymore.

The shareholders list also includes Bin Yuan & Cathy Wang because they are trustees of a trust that owns a sizable amount of Zoom’s shares. I don’t know who exactly Bin Yuan is but based on SEC filings, he is an immediate family member of Zoom’s founder Eric Yuan. Bill Yuan also appears in Zooms SEC fillings before the IPO as a shareholder, although with a much smaller stake.

  • Ownership stake under Bin Yuan & Cathy Wang is probably connected to Eric Yuan’s stock transfer from 2021, where he gifted a sizable part of his Zoom stake to somebody else.
  • During this transaction, Eric Yuan’s B Class shares were converted into ordinary shares. So by doing this, Eric Yuan weakened his control over Zoom. This is surprising because transfer among family members does not need to trigger conversion to ordinary shares according to the company’s certificate of incorporation.

Last but not least, I should mention Emergence Capital, a venture capital firm that invested in Zoom in 2015. Their stake before the IPO was significant, nearly 13%. Now they hold a 2% ownership stake, but because they hold super-voting shares, their voting power is 8%.

Zoom was founded in 2011, and the company went public in 2019. Right before the IPO, the largest shareholders, next to Eric Yuan with 19,9% share, were Emergence Capital Partners (12.6%), Sequoia Capital(11.4%), and Digital Mobile Venture (8.8%).

In this article, I will dive more into who Zoom’s largest shareholders are, how many shares and votes they have, and how much their stake is worth. I will also explore some other topics related to its ownership structure.

If you are interested, you can also explore who owns other companies like Roblox, Netflix, Twitter, or Spotify.

🕹️ Who Owns Zoom (ZM) and Who Has Control?

Zoom largest shareholders share ownership vs vote control chart

Eric Yuan, Zoom founder and CEO, owns 8% of Zoom. However, he holds 29% of the voting power. This is possible thanks to super-voting shares he and a couple of other pre-IPO shareholders own.

Zoom, as a company, has two different classes of outstanding shares. Class A shares are the ones publicly traded under the ZM ticker and have one vote per share.

However, long-term shareholders like founder Eric Yuan, Solina Chau, or Emergence Capital own Class B shares that have ten(10) votes per share instead of one, giving those shareholders outsized voting power in Zoom.

  • Currently, Eric Yuan is not fully controlling a majority of votes in Zoom, but with his voting power and position of CEO and Chairman, he is the person in charge. As you can see in the case of Tesla, you don’t have to own a majority stake to sway the decisions your way.

Additionally, assuming that Eric Yuan has the support of Solina Chau and Emergence Capital and his relatives who own Zoom shares, they together hold the majority of voting power and fully control the company.

Zoom bylaws also make it difficult to easily replace the board by using a classified board system where directors are split into three groups (classes). In each ear, only one group is up for reelection for a three-year term.

But the power of super-voting Class B shares that gives some Zoom shareholders outsize voting power is not forever. Class B shares will lose their super-voting power and automatically convert to Class A shares 15 years after IPO, which means in 2034. Until then, few early shareholders will control Zoom without owning the majority of equity.

B Class shares can cease to exist also earlier than 2034 in the following situations:

  • If current CEO Eric Yuan leaves the company or cannot do his job properly thanks to illness or death. In that case, class B shares will transform into normal ones after six months.
  • If current B Class shareholders sell their shares, they will lose their super-voting power and turn into Class A shares.
  • If holders of B Class shares agree, they can get rid of their supper-voting power earlier.

Above mentioned 15 years limit on super-voting shares is not something specific to Zoom. For example, Roblox has similar rules applied to the super-voting shares.

🗳️ Breakdown of Zoom’s Outstanding Shares and Votes by Top Shareholders

Zoom Video Communications, Inc. had a total of 299 million outstanding shares as of December 2021. The following table shows how many shares each Zoom’s large shareholder holds.

 Zoom's Outstanding Shares by Shareholder
In millions of shares as of December 2021
Shareholder Class A Class B Total % Share
Eric Yuan - 23 23 7.7%
T. Rowe Price 18 - 18 6.2%
Bin Yuan and Cathy Wang 17 - 17 5.6%
Li Ka-Shing 14 - 14 4.6%
Vanguard 13 - 13 4.4%
Solina Chau - 9 9 3.2%
Emergence Capital - 6 6 2.2%
Other 181 17 198 66.2%
Total (# millions) 243 55 299 100.0%
Listed are shareholders holding >5% of any share class or notable in other ways
   Source: Multiple SEC filings

There were 797 million votes distributed among shareholders of Zoom Video Communications, Inc.. The table below shows the total number of votes for each large shareholder.

 Zoom's Vote Control by Shareholder
In millions of votes as of December 2021
Shareholder Class A Class B Total % Share
Eric Yuan - 230 230 28.9%
Solina Chau - 94 94 11.8%
Emergence Capital - 65 65 8.1%
T. Rowe Price 18 - 18 2.3%
Bin Yuan and Cathy Wang 17 - 17 2.1%
Li Ka-Shing 14 - 14 1.7%
Vanguard 13 - 13 1.6%
Other 181 165 346 43.4%
Total (# millions) 243 554 797 100.0%
Listed are shareholders holding >5% of any share class or notable in other ways
   Source: Multiple SEC filings

Owning class B shares with ten(10) votes per share gives some shareholders larger voting power compared to shareholders who own regular shares that are publicly traded.

💵 Breakdown of Zoom’s Market Value by Shareholder

The following table summarizes how much is each shareholder’s stake in Zoom Video Communications, Inc. worth.

However, keep in mind that a stake in Zoom could be just one part of their portfolio, and their total worth could be bigger, thanks to other investments. It could also be lower if they have debts.

 Zoom's Market Value by Shareholder
Market value in billions $ as of December 2021
Shareholder Class A Class B Total % Share
Eric Yuan - $4 $4 7.7%
T. Rowe Price $3 - $3 6.2%
Bin Yuan and Cathy Wang $3 - $3 5.6%
Li Ka-Shing $2 - $2 4.6%
Vanguard $2 - $2 4.4%
Solina Chau - $2 $2 3.2%
Emergence Capital - $1 $1 2.2%
Other $33 $3 $36 66.2%
Total ($ billions) $45 $10 $55 100.0%
Listed are shareholders holding >5% of any share class or notable in other ways
   Source: Multiple SEC filings

Let’s now look at each Zoom shareholder individually.

📒 Who Are the Largest Shareholders of Zoom Video Communications, Inc.

Let’s now go through the list of the largest shareholders of Zoom Video Communications, Inc. one by one and look at who they are, how many shares they own, what is their voting power, and how much is their stake in Zoom worth.

#1 Eric Yuan

Eric Yuan holds 8% of Zoom’s shares which makes him its largest shareholder. However, thanks to super-voting shares that Eric Yuan owns, its share of total votes is 29%.

Zoom largest shareholders share ownership vs vote control chart

Eric Yuan owns 23 million Zoom shares, representing 230 million shareholder votes. The market value of Eric Yuan’s stake in Zoom was $4 billion as of December 2021.

Erik Yuan is a founder, major shareholder, and CEO of Zoom Video Communications Inc. He was born and raised in China, but in 1997 moved to the US and, since 2007, has been a United States citizen.

After moving to the US, Yuan worked for a startup called WebEx, where he was one of the early hires. The company was later acquired by Cisco, and Yuan became vice president of engineering there.

When his idea of a smartphone-friendly video conferencing system got rejected at Cisco, he founded his own company Zoom Video Communications in 2011.

#2 T. Rowe Price

T. Rowe Price holds 6% of Zoom’s shares which makes it its second-largest shareholder. However, its voting power is only 2% since some of the other shareholders hold super-voting shares that dilute T. Rowe Price’s control of Zoom.

Zoom largest shareholders share ownership vs vote control chart

T. Rowe Price owns 18 million Zoom shares, representing 18 million shareholder votes. The market value of T. Rowe Price’s stake in Zoom was $3 billion as of December 2021.

T. Rowe Price Group, Inc. is a highly regarded US-based investment management firm offering services worldwide. It is a public company traded on Nasdaq.

#3 Bin Yuan and Cathy Wang

Bin Yuan and Cathy Wang hold 6% of Zoom’s shares which makes them the third-largest shareholder. However, their voting power is only 2% since some of the other shareholders hold super-voting shares that dilute Bin Yuan and Cathy Wang’s control of Zoom.

Zoom largest shareholders share ownership vs vote control chart

Bin Yuan and Cathy Wang own 17 million Zoom shares, representing 17 million shareholder votes. The market value of Bin Yuan and Cathy Wang’s stake in Zoom was $3 billion as of December 2021.

Unfortunately, there is not much that could be said about “Bin Yuan And Cathy Wang.” They are trustees of a trust that owns a stake in Zoom Video Communications, and Bin Yuan is an immediate family member of CEO Eric S. Yuan.

#4 Li Ka-Shing

Li Ka-Shing holds 5% of Zoom’s shares. However, its voting power is only 2% since some of the other shareholders hold super-voting shares that dilute Li Ka-Shing’s control of Zoom.

Zoom largest shareholders share ownership vs vote control chart

Li Ka-Shing owns 14 million Zoom shares, representing 14 million shareholder votes. The market value of Li Ka-Shing’s stake in Zoom was $2 billion as of December 2021.

Li Ka-shing is a business tycoon and the most wealthy billionaire in Hong Kong, where he is based. Hi is currently in his 90-ties and stepped down from active management of his conglomerate, but he still serves as an adviser and major shareholder.

His conglomerate ranges across many industries, including real estate, operating container ports, telecommunication, and retail. He was also an early investor in Facebook, Spotify, and Zoom.

He is a very generous philanthropist and pledged to donate a third of his wealth to his foundation. His foundation is considered to be the second largest private foundation in the world after Bill & Melinda Gates Foundation.

#5 Vanguard

Vanguard holds 4% of Zoom’s shares. However, its voting power is only 2% since some of the other shareholders hold super-voting shares that dilute Vanguard’s control of Zoom.

Zoom largest shareholders share ownership vs vote control chart

Vanguard owns 13 million Zoom shares, representing 13 million shareholder votes. The market value of Vanguard’s stake in Zoom was $2 billion as of December 2021.

Vanguard (The Vanguard Group) is one of the largest asset managers in the world. It manages other people’s money through its mutual funds and exchange-traded funds and also offers other related investing and financial planning services.

Vanguard differs from other large asset managers by having no actual “owner .” Officially Vanguard says that its investors own it since its funds own it, and Vanguard fund investors own those funds.

However, the actual decision power is in the hands of Vanguard’s insiders since the ownership is diluted over millions of investors worldwide.

Vanguard has significant influence over the largest public companies. Thanks to its size, Vanguard usually belongs to the largest shareholders in those companies and has considerable power at their shareholder meetings. This is especially true if ownership is diluted.

Vanguard representatives make the calls about which shareholder proposal to support or not, even though Vanguard is not the ultimate owner of those stocks and they belong to their clients.

It means that just a few people in charge of the largest asset managers have significant sway over many publicly traded companies. They are usually the median investors that can push or kill many proposals. As passive investing became more popular and the asset management market more concentrated, this became quite a concerning issue.

  • Several terms were coined to describe this issue. Some call it asset manager capitalism, and popular is also the power of twelve. Financial Times even put together who exactly those twelve people might be.

  • Vanguard and other large fund managers are trying to address those concerns by having public policies describing how they are exercising their voting power. But as you can imagine, this is still a situation full of conflicts of interest.
  • Evidence shows that big asset managers usually vote together with management.

#6 Solina Chau

Solina Chau holds 3% of Zoom’s shares. However, thanks to super-voting shares that Solina Chau owns, her share of total votes is 12%.

Zoom largest shareholders share ownership vs vote control chart

Solina Chau owns 9 million Zoom shares, representing 94 million shareholder votes. The market value of Solina Chau’s stake in Zoom was $2 billion as of December 2021.

Solina Chau is a Hong Kong based businesswoman. She is a close friend and business partner of Li Ka-Shing, Hong Kong’s richest man.

She owns a stake in Chinese tech company TOM Online and is also the founder of Horizons Ventures, which invested in a lot of US tech companies.

#7 Emergence Capital

Emergence Capital holds 2% of Zoom’s shares. However, thanks to super-voting shares that Emergence Capital owns, its share of total votes is 8%.

Zoom largest shareholders share ownership vs vote control chart

Emergence Capital owns 6 million Zoom shares, representing 65 million shareholder votes. The market value of Emergence Capital’s stake in Zoom was $1 billion as of December 2021.

Emergence Capital is a venture capital firm that invests in companies in their early stage. One of their marquee investment is Zoom, where they invested in 2015 and still are partially invested in the company.

❔ Does Microsoft Own Zoom?

Microsoft does not own Zoom, and it is a separate publicly traded company. To my knowledge, Microsoft does have a stake in the company, although it is hard to know for sure since stakes under 5% do not require disclosure.

Of course, it is possible that Microsoft considered acquiring Zoom before, and there was even some unconfirmed rumor that Microsoft tried to acquire Zoom several times over the years, but founder Eric Yuan was not interested.

It is definitely a possibility that such acquisition attempts happened but take this info with a grain of salt.

❔Is Zoom a Chinese Company?

Zoom Video Communications, Inc. (Zoom) is not a Chinese company. It is US based company incorporated in Delaware in 2011. Zoom’s founder and top shareholder Eric Yuan is of Chinese origin, but he moved to the US in 1997 and, since 2007, has been a US citizen.

However, Zoom got under a lot of heat from US lawmakers about its Chinese links when it turned out Zoom fulfilled some Chinese government requests to block several meetings.

  • The company defended those moves as a need to apply local laws and regulations based on the countries where the participants are.
  • Adding to the concerns above is also the fact that Zoom has an engineering team in China, and and several prominent financial backers are Hongkong based.

Who Owns Starbucks: The Largest Shareholders Overview
Overview of who owns the Starbucks Corporation and who controls it. With a list of the largest shareholders and how much is each of their stake worth.

Who Owns Twitter: The Largest Shareholders Overview
Overview of who owns Twitter and who controls it. With a list of the largest shareholders and how much is each of their stake worth.

Who Owns Roblox: The Largest Shareholders Overview
Overview of who owns Roblox Corporation and who controls it. With a list of the largest shareholders and how much is each of their stake worth.

Who Owns Netflix: The Largest Shareholders Overview
Overview of who owns Netflix and who controls it. With a list of the largest shareholders and how much is each of their stake worth.

Other Resources

Disclaimer: Although I use third-party trademarks and logos in this article and its visuals, kamilfranek.com is an independent site, and there is no relationship, sponsorship, or endorsement between this site and the owners of those trademarks.

You can tap into my 15+ years of experience in business analytics by booking an online consultation with me. You can also hire me to help with your smaller business analytics projects. Find out more by clicking the button below. Or you can subscribe to my mailing list so you don't miss any of my new posts going forward.
Subscribe to my mailing list - do not miss any of my new posts

Updated: