Who Owns Zoom Video Communications Company?

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Who Owns Zoom Communications, Inc.?

Understanding Zoom Communications, Inc.'s ownership is key to grasping its market strategy and accountability. The company's IPO in April 2019 marked a significant shift in its ownership structure.

Founded in 2011 by Eric Yuan, Zoom Communications, Inc. has become a leading cloud-based communication platform. Its offerings, such as Zoom Video Communications BCG Matrix, are essential for modern collaboration.

Zoom Video Communications, initially incorporated as Saasbee, Inc. in April 2011, was founded by Eric S. Yuan. Yuan, a prominent engineer and businessman, also serves as the company's CEO. The company's name evolved through Zoom Communications, Inc. in February 2012 to its current name, Zoom Video Communications, Inc., by May 2012.

Founding and Incorporation

Zoom Video Communications was established in Delaware in April 2011. Its initial incorporation was under the name Saasbee, Inc.

Company Name Evolution

The company underwent name changes, first to Zoom Communications, Inc. in February 2012. Subsequently, it became Zoom Video Communications, Inc. in May 2012.

Founder and CEO

Eric S. Yuan is the founder and current Chief Executive Officer of Zoom Video Communications. He is a Chinese-American billionaire businessman and engineer.

Founder's Stake

Eric Yuan holds a significant ownership stake in the company, owning 22% of Zoom Communications.

Pre-Zoom Experience

Before establishing Zoom, Eric Yuan dedicated a decade to Cisco. He was also among the initial 20 employees at WebEx, a startup focused on web conferencing.

Early Funding and Valuation

While specific initial equity distributions are not detailed, Zoom secured private funding between 2013 and 2019. This investment period saw the company's valuation escalate into the billions prior to its public offering.

The journey of Zoom Video Communications began with Eric S. Yuan's vision, leading to its incorporation in 2011. Yuan's leadership as CEO and his substantial ownership stake of 22% underscore his pivotal role. His prior experience at Cisco and WebEx provided a strong foundation for building a successful video conferencing platform. The company's growth trajectory, fueled by private investment rounds, culminated in a significant valuation before its initial public offering, reflecting strong market confidence in its offerings and Mission, Vision & Core Values of Zoom Video Communications.

Key Aspects of Zoom's Founding

Understanding the early stages of Zoom Video Communications reveals the foundational elements of its current market position.

• Founded by Eric S. Yuan.
• Incorporated in Delaware in April 2011.
• Eric Yuan owns 22% of the company.
• Yuan's prior experience includes a decade at Cisco and early involvement with WebEx.
• The company successfully raised capital in private markets between 2013 and 2019.

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Zoom Video Communications transitioned to public ownership on April 18, 2019, with its initial public offering (IPO). This event marked a significant shift in the company's ownership structure, moving from private to public hands, and established its presence on the stock market.

The ownership landscape of Zoom Video Communications is predominantly shaped by institutional investors, with the founder, Eric S. Yuan, also holding a substantial stake. While institutional holdings represent the largest segment, individual investors and the general public also participate in Zoom ownership, reflecting its status as a publicly traded entity.

Zoom's Major Stakeholders

Institutional investors are the primary owners of Zoom Video Communications, with significant holdings by major financial firms. The company's founder, Eric Yuan, remains a key figure, though his direct ownership of Class A shares has seen recent adjustments.

• The Vanguard Group, Inc. is the largest institutional shareholder, holding 8.20% as of March 31, 2025.
• BlackRock, Inc. follows as a major institutional investor, with 5.82% as of March 31, 2025.
• Fmr Llc (Fidelity Investments) holds 3.14% of the company's stock as of March 31, 2025.
• Eric S. Yuan, the founder and CEO, historically owned 22% of Zoom.
• The general public accounts for approximately 28% of Zoom's ownership as of January 16, 2025.

Zoom Video Communications went public on April 18, 2019, with an IPO price of $36.00 per share, valuing the company at around $10.2 billion at the time. As of August 1, 2025, its market capitalization reached $21.47 billion. Institutional investors collectively held between 60% and 64.69% of the company's stock from January to June 2025. The Vanguard Group, Inc. is the largest institutional shareholder, possessing 8.20% of the shares as of March 31, 2025. BlackRock, Inc. is another significant institutional holder with 5.82% as of the same date. Fmr Llc (Fidelity Investments) held 3.14% as of March 31, 2025. Other notable institutional stakeholders include State Street Corp and T. Rowe Price Investment Management, Inc. Eric S. Yuan, the founder and CEO, is a substantial individual shareholder, historically owning 22% of Zoom. While recent filings show Eric Yuan has sold some Class A shares, his overall ownership, likely including Class B shares, remains significant. The general public, comprising individual investors, held a 28% stake as of January 16, 2025. Understanding the Revenue Streams & Business Model of Zoom Video Communications can provide further context on the company's value and investor interest.

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As of August 26, 2024, Zoom's Board of Directors consists of ten directors, including the recent appointment of Mike Fenger, Vice President of Worldwide Sales at Apple Inc. Eric S. Yuan holds the positions of Chairman of the Board, President, and Chief Executive Officer, leading a board that balances independent directors with representatives of significant shareholders and the founder.

Zoom Video Communications operates with a dual-class share structure, comprising Class A and Class B common stock. As of February 14, 2025, the company had 262,753,519 shares of Class A common stock and 42,480,334 shares of Class B common stock outstanding. Director elections are determined by a plurality of votes cast, meaning nominees with the most 'For' votes are elected. While Eric Yuan maintains substantial control through his overall ownership, the precise influence of the dual-class structure on voting power is typically detailed in the company's proxy statements, offering insight into Zoom ownership and who owns Zoom.

Understanding Voting Power at Zoom

Zoom's dual-class stock system significantly impacts voting power. Class B shares typically carry more votes per share than Class A shares, concentrating control with early investors and founders.

• Class A and Class B common stock exist.
• Class B shares usually have superior voting rights.
• This structure influences who controls major decisions.
• Understanding this is key to grasping Zoom company owner dynamics.
• Explore the Growth Strategy of Zoom Video Communications for more context.

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In recent years, Zoom Video Communications has implemented significant share repurchase programs, indicating a focus on returning value to shareholders. These actions, coupled with strategic product development, shape its evolving ownership landscape.

Zoom has been actively integrating artificial intelligence into its platform, launching Zoom AI Companion and expanding its hybrid work solutions. This strategic direction is supported by continued growth in offerings such as Zoom Customer Experience, Zoom Revenue Accelerator, and Workvivo. Industry trends show a notable increase in institutional ownership, with institutions holding 60% of Zoom as of January 16, 2025. The top 24 shareholders collectively control 50% of the company's ownership, making the stock price susceptible to their trading activities. Despite some founder stock sales, Eric Yuan, the Zoom founder, maintains a substantial stake in the company. InvestingPro analysis rates the company's financial health as 'GREAT,' citing strong cash flow management. For fiscal year 2026, Zoom projects revenue between $4.8 billion and $4.81 billion, with non-GAAP earnings per share anticipated to be between $5.56 and $5.59.

Institutional Ownership Dominance

Institutions held 60% of Zoom ownership as of January 16, 2025. The top 24 shareholders manage 50% of the total ownership.

Shareholder Returns Focus

The company announced a $1.5 billion stock buyback in February 2024, later expanded by $1.2 billion in November 2024. This reflects a commitment to shareholder value.

Strategic Product Evolution

Zoom is enhancing its platform with AI capabilities through Zoom AI Companion. The company is also expanding its hybrid work solutions to meet market demands.

Financial Outlook and Founder Stake

Fiscal year 2026 revenue is projected between $4.8 billion and $4.81 billion. The Competitors Landscape of Zoom Video Communications highlights its market position, with the founder retaining a significant ownership stake.

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