His connection to Facebook: He was roommates with the other core founders, but didn’t code or design the site. Instead he was considered its spokesman, and is credited with coming up with “many hugely popular features,” driven by his insistence that the site’s tech “could enrich the lives of users.”
His current worth: Forbes estimated his net worth at $700 million last year.
What Facebook’s IPO could earn him: Hughes has a 1% stake, which translates into $850 million of worth in what could eventually be an $85 billion business.
What he may do with the money: Hughes is the quiet man in this exclusive club (Googling turns up more responses for a U.K. journalist with the same name), so it’s hard to say. His Jumo effort is a nonprofit, and so may get a cash injection. There’s also that New Republic rumor to think about.
Well, now we know what Hughes is up to with some of his money. As we suspected, he’s now bought The New Republic magazine. His purchase of a majority stake was announced today, and he’s planning on bringing some of his tech skills to the nearly century-old publication by expanding TNR‘s presence onto tablet computers…meaning, mainly, the iPad. The print edition will remain, but Hughes fully expects that in five to ten years the majority of readers will be accessing the mag’s long form journalism on a tablet.
In a letter to readers, Hughes notes he resents that “today too many media institutions chase superficial metrics of online virality at the expense of investing in rigorous reporting and analysis of the most important stories of our time” and he instead shares the quality journalism vision of TNR‘s founders.
The terms of the deal aren’t revealed, so we don’t know how much Hughes paid, nor the new ownership structure–the magazine was previously owned by a consortium.
What he’ll make at IPO: A hundred million dollars, at a Facebook valuation of $100 million.
What he’ll do with the cash: We already know he’s bought The New Republic, and now it looks like he’s injecting serious money and momentum into the publication because he’s planning a new New York office for it which’ll be staffed by both editors and business-side folk. Hughes and his partner also recently pledged $100,000 to support Mainers United for Marriage, an organization pressing Maine’s legislators to take a pro-same-sex marriage stance. Could this quietest of the Facebook club become a bit of a background political force?
It’s beginning to look like Hughes and his partner are indeed leveraging their cash pile for political means: In cooperation with Governor Andrew Cuomo, they’re funding a campaign to push the idea of publicly financed elections. Meantime Hughes’ efforts at The Next Republic continue apace, with rumors of top-rank new hires and a goal of being the “New Yorker of D.C.”
Read about others in the Facebook IPO Players Club:
- Sean Parker
- Peter Thiel
- Dustin Moskovitz
- Reid Hoffman
- David Choe
- Donald Graham
- Jim Breyer
- Eduardo Saverin
- Li Ka-shing
- Jeff Rothschild
- Sheryl Sandberg