August 6, 2021

Zoom founder became one of the richest people in the world in 2020

While Covid-19 has harmed many businesses, others have been able to take advantage of the new opportunities created by this unprecedented situation to prosper. This is particularly the case of Zoom, an American videoconferencing service, which has experienced a real explosion and which made its founder, Eric Yuan, one of the richest people in the world in 2020, reports CNBC.

When many businesses collapse due to Covid-19 …

Almost a year ago, the World Health Organization (WHO) reported the identification of a new coronavirus in Wuhan, China. The situation quickly deteriorated: barely three months later, the global pandemic was declared. To respond to this unprecedented health crisis, various governments across the globe have implemented containment measures: schools, shops and borders closed, compulsory teleworking, outings and travel prohibited …

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The world has been put on hold, creating significant challenges for many businesses. Airbnb, for example, had to part with a quarter of its employees. For its part, Lime had to lay off 13% of its workforce when its competitor, Bird, had to lay off 400 employees. More generally, it was estimated in July 2020 that 70,000 tech employees had lost their jobs due to the health crisis.

… Zoom prosperous

A disaster scenario which, however, is far from universal. Indeed, some firms have succeeded in taking advantage of this situation, and this is particularly the case of Zoom. As families could no longer reunite and teleworking became compulsory, the American videoconferencing service quickly established itself in homes as a solution to continue to maintain ties, whether professional or personal.

Thanks to the mass arrival of hundreds of thousands of new users around the world, Zoom was able to quadruple its turnover, from 145.8 million dollars in the second quarter of 2019, to $ 663.5 million to second quarter 2020. At the same time, its share price has exploded by 450%, making her one of the best actions of the year.

Eric Yuan’s fortune reaches new heights

A situation that will have been particularly beneficial to Eric Yuan, founder and CEO of Zoom. The man, who was already a billionaire before the health crisis, saw his fortune reach new heights thanks to the explosion of his videoconferencing service. In fact, he would now weigh 16.5 billion dollars according to Forbes, which makes him one of the 100 richest people in the world (far, all the same, behind Jeff Bezos and Elon Musk). In parallel, Eric Yuan was also voted “Businessman of the Year” 2020 by Time.

An undeniable success, which is however far from being achieved ad vitam aeternam. Recently, the announcement of a Covid-19 vaccine caused Zoom’s stock market to fall. The question is therefore legitimate: once the health crisis has passed, Will Zoom manage to stay the course against competitors? such as Microsoft Teams and Slack which was recently acquired by Salesforce? The future will tell.