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Li Ka-shing is profiting from early bet on Zoom with stake now worth US$3 billion

  • Hong Kong’s richest man took part in two rounds of Zoom fundraising in 2013 and 2015
  • Zoom has risen 83 per cent on Nasdaq this year as the company’s app becomes ‘social gathering’ place amid lockdowns

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Tycoon Li Ka-shing with his son Victor Li Tzar-kuoi, chairman of CK Asset Holdings Ltd, at the companies annual dinner in Wan Chai, Hong Kong in January 2020. Photo: Dickson Lee
Li Ka-shing built Hong Kong’s biggest fortune on old-fashioned real estate and infrastructure. It’s a bet on technology that is paying off in the current crisis.

Li, called “Superman” by his admirers, was an early investor in Zoom Video Communications and owns about 8.6 per cent of the San Jose-based company, according to regulatory filings.

The value of Li’s stake has surged 80 per cent this year to US$3 billion, the only public holding of his tracked by the Bloomberg Billionaires Index to record a gain. His overall fortune has dropped by US$4.6 billion to US$25.7 billion this year after Hong Kong was hit by anti-government protests and the coronavirus pandemic.

The 91-year-old tycoon owns Zoom through three investment vehicles, according to the filings. Horizons Ventures, which manages Li’s venture investments, led a US$6.5 million series B round funding in the video conferencing company in 2013. It took part in a US$30 million series C round two years later, according to the company’s website.

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CEO Eric Yuan attends the opening bell at Nasdaq as his company holds its in April 2019. The stock has rallied as people rely on its video conferencing app at home amid the coronavirus pandemic. Photo: AP
CEO Eric Yuan attends the opening bell at Nasdaq as his company holds its in April 2019. The stock has rallied as people rely on its video conferencing app at home amid the coronavirus pandemic. Photo: AP

His stake was worth about US$850 million when Zoom started publicly trading in the US in April 2019. The stock has rallied 83 per cent this year to US$124.51 through April 9, giving the company a market value of US$34.7 billion.

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Zoom’s teleconferencing software has become an essential tool for millions at a time when much of the world is socially distancing to blunt the toll of the Covid-19 disease.

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