Meta CEO Mark Zuckerberg at a UFC Fight Night event. Jeff Bottari/Zuffa LLC
Meta CEO Mark Zuckerberg experienced a mix of fortunes in the past week. He witnessed a $28 billion increase in his net worth following Facebook’s impressive quarterly report. However, he also faced significant scrutiny from lawmakers regarding his company’s child safety policies. At one point, he issued a direct apology to the families of adolescent victims of online sexual abuse.
A less noted aspect of Meta’s released financial report for 2023 was a warning to investors. In a section titled “Risks Related to Our Business Operations and Financial Results,” the company highlighted that its CEO engages in “various high-risk activities, such as combat sports, extreme sports, and recreational aviation, which carry the risk of serious injury and death.”
The report also mentioned that “If Mr. Zuckerberg were to become unavailable for any reason, there could be a material adverse impact on our operations.”
Zuckerberg responded to the coverage of this warning with a post on Meta’s Threads, affirming that “High risk = high reward.”
This interest in combat sports is not new. Last year, there were rumors of a potential cage fight between Zuckerberg and Tesla CEO Elon Musk. However, Zuckerberg dismissed the idea, stating that he would focus on competing with individuals who take the sport seriously.
In a Fortune article last year, the potential investor risk stemming from his combat sports involvement was addressed. However, the issue of CEOs engaging in such risky activities is uncommon, making it a matter of materiality for investors.
The recent revelation of Zuckerberg tearing his ACL during sparring led to questions about whether investors should be alerted to the risks associated with his participation in combat sports.
This prompted Meta to include a warning in its annual report. Zuckerberg’s Instagram posts also shed light on his physical combat activities, further raising concerns.
Amid discussions about jiu-jitsu on a podcast, Zuckerberg mentioned his competitive nature and determination not to lose in a match. These statements continue to fuel the debate surrounding the potential impact of his combat sports involvement on Meta and its investors.
