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One-Third of Li Ka-shing’s Wealth Is an $11 Billion Zoom Stake

Li Ka-shing’s Hong Kong enterprise empire could also be struggling, however he’s managed to stay town’s richest man. That’s largely because of an early wager on Zoom Video Communications Inc. and Solina Chau, his long-time confidante who co-founded the billionaire’s venture-investment arm.

The tycoon, who’s greatest recognized for constructing some of probably the most iconic skyscrapers to dot Hong Kong’s skyline, first invested within the video-conferencing app in 2013. The 92-year-old now holds 8.5% of the San Jose, California-based firm, a stake that’s value $11 billion, or one-third of his wealth.

Zoom has been on a tear this 12 months because the coronavirus shuttered places of work and faculties, forcing individuals to carry digital conferences and courses.

On Monday, the U.S.-listed firm reported a 355% soar in gross sales for the three months ended July 31, the second-best outcome amongst Nasdaq 100 Index members final quarter. That boosted the inventory an additional 41% Tuesday, with Li’s stake gaining $3.2 billion in simply in the future. He’s now value $32.6 billion, in line with the Bloomberg Billionaires Index.

While Zoom (ZM) has surged this 12 months, Li’s conglomerates, CK Hutchison Holdings Ltd. and CK Asset Holdings Ltd., have struggled amid the Covid-19 disaster and the anti-government protests which have hit Hong Kong. The shares have misplaced greater than 1 / 4 of their worth in 2020, and the tycoon who for many years profited by increasing in instances of disaster is now scaling again, looking for price cuts.

After reporting first-half revenue dropped 29%, CK Hutchison warned final month that web earnings could fall at its core ports and retail companies within the second half of the 12 months. Meanwhile, CK Asset mentioned earnings sank 58% within the six months via June.

The Zoom funding is partly because of Chau, who in 2002 co-founded Horizons Ventures Ltd., which manages Li’s enterprise investments. The automobile was an early backer of Facebook Inc., Spotify Technology SA and Siri, and has additionally invested in plant-based meat producer Impossible Foods Inc. It participated in Zoom funding rounds in 2013 and 2015, and when the corporate went public final 12 months, Li’s stake was value about $850 million. Horizons Ventures declined to remark.

Li’s returns from investments via Horizons Ventures are allotted to his charity, the Li Ka Shing Foundation, which Li has known as his third son. He put one-third of his wealth in it in 2006, or greater than $9 billion, in line with a 2015 assertion from his enterprise group. Chau, 59, is the muse’s government director.

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