who-owns-roblox

Who Owns Roblox?

Roblox is owned by David Baszucki and Gregory Baszucki, with a 2.3% and 2.6% stake, respectively. Anthony lee, managing partner at Altos Ventures, with a 15.3% stake.

AspectDescriptionAnalysisExamples
Products and ServicesRoblox Corporation is a gaming platform and game creation system that allows users to create, share, and play games created by other users. The core offering is the Roblox platform itself, which includes a virtual world where players can explore, socialize, and play games created by developers using Roblox Studio. Roblox also offers virtual currency called “Robux,” which can be purchased and used for in-game purchases, such as virtual items, accessories, and avatar customizations. The company hosts virtual events and has a developer marketplace where creators can monetize their games.Roblox’s primary product is its gaming platform, which provides a virtual ecosystem for user-generated content and gameplay. The virtual currency, Robux, drives in-game purchases and monetization for developers. Virtual events enhance user engagement. The developer marketplace allows creators to generate revenue.Roblox platform (virtual world and user-generated games), Robux (virtual currency), virtual items and accessories, avatar customizations, virtual events, developer marketplace (monetization for creators), Roblox Studio (game creation tool).
Revenue StreamsRoblox generates revenue primarily through the sale of Robux, which users purchase with real money and spend on in-game items, accessories, and avatar customizations. The company shares a portion of the revenue with developers as part of its developer exchange program. Additionally, Roblox offers premium subscriptions, such as Roblox Premium, which provide exclusive benefits to subscribers for a monthly fee.Revenue from the sale of Robux is a significant income source, driven by user spending on in-game purchases. Revenue sharing with developers motivates game creation. Premium subscriptions provide recurring revenue from subscribers seeking exclusive benefits.Revenue from the sale of Robux (e.g., Robux purchased with real money), revenue sharing with developers (developer exchange program), income from premium subscriptions (e.g., Roblox Premium).
Customer SegmentsRoblox serves a diverse customer base, primarily consisting of gamers of all ages who enjoy user-generated content and online social interactions. The brand appeals to game developers and creators who use the platform to design and monetize their games.Roblox’s target demographic includes gamers of all ages, especially those interested in user-generated content and online social experiences. Game developers and creators seek a platform to bring their game ideas to life and monetize their creations.Gamers of all ages, game developers, creators seeking a platform for game creation and monetization, users interested in user-generated content and online social interactions.
Distribution ChannelsRoblox primarily distributes its products and services through its gaming platform, which users access through desktop and mobile apps. The company also utilizes its website to promote the platform, offer in-game purchases, and provide resources to users and developers.The Roblox platform is the central distribution channel, where users access games and content. The website supports user engagement, in-game purchases, and developer resources.Distribution through the Roblox platform (desktop and mobile apps), promotion through the Roblox website (roblox.com), in-game purchases, developer resources.
Key PartnershipsRoblox collaborates with game developers and creators who use the platform to create and publish games. The company also partners with payment processors to facilitate the purchase of Robux. Additionally, Roblox forms partnerships with entertainment companies, brands, and artists for virtual events and promotional activities.Collaborations with game developers and creators enrich the platform with diverse content. Partnerships with payment processors ensure secure transactions. Collaborations with entertainment companies, brands, and artists create virtual events and promotional opportunities.Collaborations with game developers (e.g., game creators on the platform), partnerships with payment processors (e.g., facilitating Robux purchases), collaborations with entertainment companies, brands, and artists (e.g., virtual events and promotions with Warner Bros., Adidas).
Key ResourcesRoblox’s key resources include its gaming platform and infrastructure, Robux virtual currency, user-generated content, a community of players and developers, developer tools like Roblox Studio, a global user base, brand recognition, and a commitment to user safety and moderation.The gaming platform and infrastructure provide the foundation for user-generated content and gameplay. Robux virtual currency drives the in-game economy. User-generated content and a vibrant community of players and developers are vital resources. Developer tools empower creators. A global user base ensures platform activity. Brand recognition builds trust. User safety and moderation are essential for a safe environment.Gaming platform and infrastructure, Robux virtual currency, user-generated content, community of players and developers, developer tools like Roblox Studio, global user base, brand recognition, commitment to user safety and moderation.
Cost StructureRoblox incurs costs in server maintenance and hosting to support its gaming platform and virtual world. The company invests in research and development efforts to enhance the platform and developer tools. Marketing and advertising expenses promote the platform and virtual events. Employee salaries, including developers and moderators, represent a significant portion of costs. Investments in safety and content moderation require resources.Server maintenance and hosting costs ensure platform reliability. Research and development efforts drive innovation and feature improvements. Marketing campaigns promote user engagement. Employee salaries, especially for developers and moderators, are a substantial expense. Investments in safety and content moderation are essential for a safe environment.Costs related to server maintenance and hosting, research and development of new platform features, marketing and advertising campaigns (e.g., Roblox marketing efforts), employee salaries (e.g., developers, moderators), investments in safety and content moderation.
Competitive AdvantageRoblox’s competitive advantage lies in its user-generated content platform, community-driven content creation, the virtual currency Robux, partnerships with entertainment companies, global user base, developer tools like Roblox Studio, and a commitment to user safety. The platform’s unique approach empowers creators and fosters engagement.A user-generated content platform allows for diverse and engaging experiences. Community-driven content creation encourages innovation. Robux virtual currency drives in-game purchases. Partnerships with entertainment companies enhance content offerings. A global user base ensures activity. Developer tools like Roblox Studio empower creators. A commitment to user safety builds trust.Roblox’s user-generated content platform, community-driven content creation, Robux virtual currency, partnerships with entertainment companies, global user base, developer tools like Roblox Studio, commitment to user safety.
Value PropositionRoblox offers users an immersive and interactive gaming platform where they can create, explore, and play user-generated games. The platform provides social interaction, creativity, and the ability to monetize creations. Robux enables in-game purchases and customization.Roblox’s value proposition centers on providing a dynamic and creative gaming platform. User-generated content fosters creativity and engagement. Social interaction enhances the gaming experience. The ability to monetize creations appeals to developers. Robux enables in-game purchases and personalization.An immersive and interactive gaming platform for creating, exploring, and playing user-generated games, social interaction, creativity, the ability to monetize creations, in-game purchases and customization with Robux.

Why Roblox is building the real Metaverse

Zuckerberg had the conviction that VR would have become the next platform in 2014, when Facebook acquired VR maker, Oculus (which still today represents the main product in the Reality Labs segment).

And yet Zuckerberg’s vision of the Metaverse seemed like Bill Gates’ vision for the Information Highway.

It was correct wholly but directionally missed how it would have evolved in the short term.

The same goes for the Metaverse.

Zuckerberg might be right about VR becoming an important business platform in the future, but not in the way he envisioned it in the short term!

Yet, with mounting losses of Reality Labs and slowed down revenue for its VR headsets, Meta had to re-change its strategy.

facebook-losses

The company’s cost structure completely collapsed under the weight of a Metaverse that never materialized.

facebook-capital-expenditure

The spiked expenses into the Metaverse also crashed Facebook’s profitability.

facebook-profitability

Again, that doesn’t mean the Metaverse is not happening, but not in the way Zuckerberg envisioned, and not on Meta!

Today, the Metaverse is happening on other platforms like Roblox.

roblox-dau

Roblox it’s so sticky that it has seen its daily active users move from 49.5 million by 2021 to almost 59 million in 2022, collectively spending engaging on the platform 12.8 billion hours!

Key Highlights

  • Roblox Ownership: Roblox is owned by several individuals, including David Baszucki and Gregory Baszucki, who hold stakes of 2.3% and 2.6% respectively. Anthony Lee, the managing partner at Altos Ventures, holds a significant stake of 15.3%.
  • Roblox and the Metaverse: The text discusses how Mark Zuckerberg believed in the potential of virtual reality (VR) and the Metaverse when Facebook acquired Oculus in 2014. However, the vision of the Metaverse didn’t develop as expected in the short term, similar to Bill Gates’ vision for the Information Highway.
  • Meta’s (formerly Facebook) Strategy: Despite Zuckerberg’s conviction, the realization of the Metaverse didn’t align with the company’s expectations. Reality Labs incurred losses and revenue for VR headsets slowed down. Meta had to re-adjust its strategy due to financial challenges and expenses related to the Metaverse.
  • Metaverse and Profitability: The pursuit of the Metaverse impacted Meta’s cost structure and profitability. While the vision might still be relevant, the initial approach didn’t yield the expected results for the company.
  • The Emerging Metaverse on Other Platforms: The text suggests that while Meta’s Metaverse vision faced challenges, the Metaverse concept is being realized on other platforms, like Roblox.
  • Roblox’s Growth and Popularity: Roblox’s popularity is highlighted, with its daily active users growing from around 49.5 million in 2021 to nearly 59 million in 2022. Users spent a substantial amount of time on the platform, collectively engaging for 12.8 billion hours.

Connected Visual Highlights

Roblox DAUs

roblox-dau
By December 2022, Roblox had almost 59 million daily active users on the platform and engaged 12.8 billion hours for the full year. Compared to 49.5 million daily active users in 2021.

Roblox Financials

roblox-financials
In 2022, on $2.9 billion in bookings (activity in a given period without giving effect to certain non-cash adjustments), compared to $2.2 billion in revenue, Roblox reported a negative free cash flow of $58 million and a net loss of over $930 million.

Roblox Revenue

roblox-revenue
In 2022, on $2.9 billion in bookings (activity in a given period without giving effect to certain non-cash adjustments), Roblox generated over to $2.2 billion in revenue.

Roblox Profitability

roblox-profitability

Who Owns Roblox

Who Owns Roblox
Roblox is owned by David Baszucki and Gregory Baszucki, with a 2.3% and 2.6% stake, respectively. Anthony lee, managing partner at Altos Ventures, with a 15.3% stake.

Connected Business Model Case Studies

Roblox Business Model

roblox-business-model
Roblox is an online gaming platform where users can create avatars and explore various gaming experiences. Each experience will be monetized based on how its developer has structured the game. For instance, free games allow users to spend the platform’s currency, called Robux, to get specific enhancements or purchase items like clothing accessories for the avatars, simulated gestures from the Roblox Avatar Marketplace. Therefore, Roblox makes money by earning a commission on each transaction and through its internal ad network.

Gaming Business Models

gaming-industry
The gaming industry, part of the entertainment industry, is comprised of three main types of players. From game engines, which help developers build their games. To publishing gaming houses. And gaming consoles. While the prevailing business model for decades has been that of selling the console at cost and making money on games. Digital games changed the way games are distributed and sold, and they opened up the way to free-to-play models.

Free-to-play Business Model

free-to-play
A free-to-play is a model that became particularly popular in gaming. Free-to-play is also commonly referred to as free-to-start. For instance, companies like Epic Games have launched popular games like Fortnite’s Battle Royale, which had ingrained a free-to-play model. This is a model that become extremely popular in the digital age of gaming.

Epic Games Business Model

epic-games-business-model
Epic Games is a gaming company, that develops, publishes, and distributes games. It comprises the Unreal Engine, making money through licensing agreements with developers and creators. Its games (like Fortnite) mostly follow a free-to-play model on PC and an in-app purchase model on the digital marketplace. And its storefront Epic Games Store, taking a 12% cut on games’ sales.

Play-to Earn Business Model

play-to-earn
The play-to-earn model is a business model allowing gamers to farm or collect cryptocurrency and NFTs that can be sold on the market. This model has become a standard already in the “crypto gaming industry,” where the blockchain-based games enable token economics to kick in as an incentives mechanism at scale for users to play and be engaged.

Axie Infinity Business Model

how-does-axie-infinity-work-and-make-money
Axie Infinity is an NFT-based online video game developed by Sky Mavis, a Vietnamese game studio founded by Trung Nguyen in 2018. Nguyen combined his interest in blockchain accountability and the CryptoKitties craze to launch the game in August 2018. Sky Mavis generates the bulk of its revenue via the 4.25% fee it charges on all in-game purchases. This includes land purchases, monster NFT trading, and monster breeding. Axie Infinity requires that all new players purchase three monsters to get started. Since the cost can run into hundreds of dollars, Sky Mavis will lend players the monsters and collect a 30% interest fee once the player starts earning currency.

Read Also: How Much Money Has Fortnite Made, Epic Games Business Model, Free-To-Play Business Model, Gaming Industry, EA Sports Business Model, Discord Business Model.

Related Tech Ownership Case Studies

Who Owns OpenAI

who-owns-openai
OpenAI is an artificial intelligence research laboratory that transitioned into a for-profit organization in 2019, which comprised an entity called OpenAI LP and the non-profit parent foundation OpenAI. The lab, which was founded in 2015 by Elon Musk, Sam Altman, and various others, has a core focus on the development of friendly AI that benefits society as a whole. Yet now has primarily evolved as a capped-for-profit entity with an exclusive commercial license to Microsoft.

Who Owns Airbnb

who-owns-airbnb
Its co-founders primarily own Airbnb: Brian Chesky, with 76,407,686 Class B shares, which gives him 29.1% of ownership; Nathan Blecharczyk, with 232,306 Class A and 64,646,713 Class B, which give him 25.3%; and Joe Gebbia, which has 5,113,865 Class A and 58,023,452 Class B, which give him 22.9% ownership.

Who Owns Google

who-owns-google
Google is primarily owned by its founders, Larry Page and Sergey Brin, who have more than 51% voting power. Other individual shareholders comprise John Doerr (1.5%), a venture capitalist and early investor in Google, and CEO, Sundar Pichai. Former Google CEO Eric Schmidt has 4.2% voting power. The most prominent institutional shareholders are mutual funds BlackRock and The Vanguard Group, with 2.7% and 3.1%, respectively.

Who Owns Facebook

who-owns-facebook
Mark Zuckerberg is the largest shareholder in the company. Zuckerberg retains ownership and control of the company. Like Google, Facebook has issued two common stocks, Class A and Class B. The holders of Class B common stocks are entitled to ten votes per share, and holders of our Class A common stocks are entitled to one vote per share. Mark Zuckerberg has a voting power of 56.9%; he’s the primary decision-maker. Other individual investors comprise Sheryl Sandberg, Christopher Cox, Marc Andreessen, Peter Thiel, Dustin Moskovitz, and Eduardo Saverin.

Who Owns Apple

who-owns-apple
As of 2023, major Apple shareholders comprised Warren Buffet’s Berkshire Hathaway with 5.73% of the company’s stock (valued at over $130 billion). Followed by other individual shareholders like Tim Cook, CEO of Apple, with about 3.3 million shares, Artur Levinson, chairman of Apple, with over 4.5 million shares, and others.

Who Owns Amazon

who-owns-amazon
With 64,588,418 shares, Jeff Bezos is the major individual investor. Owning 12.7% of the company. Other top individual investors comprise Amazon’s CEO Andy Jessy, with 94,729 shares. Top institutional investors include mutual funds like The Vanguard Group (6.6% ownership) and BlackRock (5.7% ownership). 

Who Owns Microsoft

who-owns-microsoft
Major shareholders comprise co-founder Bill Gates, who stepped down from the company’s board in 2020, which is why these shares are no longer publicly reported. In 2019, Gates still owned a stake of 103 million stocks, which accounted for 1.34% of the company’s ownership (worth over $23 billion in January 2023). Other individual shareholders comprise Satya Nadella, the company’s CEO, Brad Smith (former president), Jean-Philippe Courtois (EVP), and Amy Hood (former CFO).

Who Owns Tesla

who-owns-tesla
By 2022, most of Tesla’s shares are still owned by Elon Musk, among the company’s co-founders and the CEO. Elon Musk is the top individual investor, with a 23.5% stake in the company, equivalent to over 244 million shares. Musk is followed by Lawrence Ellison (founder of Oracle), with a 1.5% company stake. Ellison also sits on Tesla’s board. And Antonio Gracias, among the company’s first investors, has over 1.6 million shares. Other institutional investors and mutual funds like The Vanguard Group (6%), Blackrock (5.1%), and Capital Ventures International also have a good chunk of the company’s stocks.

Who Owns PayPal

who-owns-paypal
PayPal was first founded in 1998; it was called Confinity (among its founders was Peter Thiel); later, it merged with X.com, its major competitor, founded by Elon Musk (which would become known for other companies like Tesla and SpaceX). From this merger, PayPal was born. In 2002, PayPal was bought by eBay for $1.5 billion. eBay spun off PayPal in 2015, which would be listed as an independent entity. Today PayPal owns brands like Braintree, Venmo, Xoom, and iZettle.

Who Owns Netflix

who-owns-netflix
Netflix’s largest individual shareholder is Reed Hastings, co-founder, and former CEO of the company, now Chairperson of Netflix, with a 1.7% stake, valued at over $2.4 billion in February 2023. Other significant individual shareholders comprise Jay C. Hoag, the company’s directors since 1999, and Ted Sarandos, former chief content officer and now Chief Executive Officer of Netflix. Major institutional shareholders comprise The Vanguard Group (7.55% ownership), BlackRock (6.58% ownership), and Capital Research Global Investments (5.84% ownership).

Who Owns TikTok

who-owns-tiktok
TikTok is owned by ByteDance, a Chinese internet technology company owning several content platforms worldwide (Douyin, Toutiao, Xigua Video, Helo, Lark, Babe). Bytedance passed the $300 billion private market valuation by 2022, making around $58 billion in revenue in 2022, over $4 billion from TikTok.

Who Owns YouTube

who-owns-youtube
Acquired by Google, in 2006, for $1.65 billion, YouTube is now worth many times over. In 2022, YouTube generated over $29 billion in revenue from advertising alone. YouTube is part of Google (now named Alphabet), and as such, it is owned by main Google’s Alphabet shareholders and is one of the fastest-growing segments for the company.

Who Owns Twitter

who-owns-twitter
As of April 25th, 2022, Elon Musk tried to take over Twitter. Musk tried to purchase the company at $54.20 per share, or about $44 billion. The deal finally closed by October 27th, 2022, and Elon Musk became the largest shareholder.

Who Owns Spotify

who-owns-spotify
The multi-billion music streaming company Spotify is primarily owned by its founders, Daniel Ek and Martin Lorentzon. As of 2023, Daniel Ek has 16.5% ownership of ordinary shares and 31.7% of the voting power. Martin Lorentzon has 10.9% of ordinary shares and 42.6% of the voting power. Another key shareholder is Baillie Gifford & Co, a Scottish-based money management firm, followed by Morgan Stanley, T. Rowe Price, and Tencent.

Who Owns Nvidia

who-owns-nvidia
The top individual shareholder of NVIDIA is Jen-Hsun Huang, founder, and CEO of the company, with 87,521,722 shares giving him 3.50% ownership. Followed by Mark A. Stevens, venture capitalist and a partner at S-Cubed Capital, who was part of the NVIDIA board in 2008 and previously served as a director from 1993 to 2006, with 6,258,803 shares. Institutional investors comprise The Vanguard Group, Inc, with 196,015,550, owning 7.83%. BlackRock, Inc., with 177,858,484, owns 7.10%. And FMR LLC (Fidelity Institutional Asset Management) with 158,039,922, owning 6.31%.

Who Owns Uber

who-owns-uber
Uber’s principal individual shareholders comprise Yasir Al-Rumayyan (3.73%), the Governor of the Public Investment Fund, the sovereign wealth fund of the Kingdom of Saudi Arabia, and Dara Khosrowshahi, the founder and CEO of Uber. There is Morgan Stanley, with 5.12% ownership among the top institutional investors.

Who Owns Shopify

who-owns-shopify
The founder and CEO of Shopify, Tobias Lütke, owned or controlled 7,891,852 Class B multiple voting shares and 5,250 Class A subordinate voting shares, representing approximately 33.8% of the aggregate voting power attached to all of the Company’s outstanding voting shares. Another key stakeholder is John H. Phillips, an angel investor who placed an early bet on Shopify.

Who Owns Roblox

who-owns-roblox
Roblox is owned by David Baszucki and Gregory Baszucki, with a 2.3% and 2.6% stake, respectively. Anthony lee, managing partner at Altos Ventures, with a 15.3% stake.

Who Owns Twitch

who-owns-twitch
In 2014, Twitch was bought by Amazon for $970 million. Therefore Twitch is part of Amazon, comprising other subsidiaries bought over the years, like Audible, Whole Foods, and Zappos (in total, Amazon has 12 subsidiaries). Therefore, as of 2020, Twitch is a multi-billion dollar company, making money primarily via advertising through its video streaming platform (creators use Twitch today across many other verticals).

Who Owns Zoom

who-owns-zoom
Zoom’s principal private shareholders comprise Eric S. Yuan, a Chinese-American billionaire businessman that founded Zoom. Dan Scheinman, board member and angel investor in Zoom since the start, and Santiago Subotovsky, also an early investor in Zoom. Zoom follows a freeterprise business model where free accounts are channeled into enterprise customers.

Who Owns Activision

who-owns-activision
In one of the largest deals in the business world, Microsoft acquired Activision Blizzard in a $68.7 billion transaction. Making Microsoft the world’s third-largest gaming company by revenue, behind Tencent and Sony. However, given the size of the deal, this is still under the scrutiny of regulators who need to approve it. If the deal goes through, Microsoft will become among the largest gaming companies in the world.

Who Owns Pixar

who-owns-pixar
Pixar is owned by The Walt Disney Company, which acquired it in 2006 in a $7.4 billion deal. Today Pixar is part of the Disney Empire. The principal shareholders of Disney comprise Robert Iger, CEO of the company, and institutional investors like The Vanguard Group and Blackrock.

Who Owns Salesforce

who-owns-salesforce
Marc Benioff, Co-CEO of Salesforce, is the primary individual shareholder, with 3% of the company’s stock. Other main individual shareholders comprise Parker Harris, Co-Founder and Chief Technology Officer, and Bret Taylor, former co-CEO. Major institutional shareholders include The Vanguard Group, Fidelity, and BlackRock.

Who Owns Slack

who-owns-slack
In a $27.7 billion deal in 2021, Salesforce’s finalized the acquisition of Slack, which was integrated into Salesforce. Today Slack is still a product mostly independently managed by Salesforce, which incorporated some of its features within its platform. Entrepreneur Marc Benioff primarily owns salesforce.

Who Owns Snapchat

who-owns-snapchat
Evan Spiegel and Robert Cornelius Murphy are the co-founders and, respectively, CEO and CTO of Snapchat. Evan Spiegel owns 3% of Class A stocks, 25.7% of Class B stocks, and 53.4% of Class C stocks for a 53.2% voting power, whereas Robert Murphy owns 6% of Class A stocks, 25.7% of Class B stocks, and 46.6% of Class C stocks for a 46.6% voting power. Snapchat runs an advertising-based business model.

Who Owns Coinbase

who-owns-coinbase
Main individual shareholders comprise co-founders Brian Armstrong (59.5% voting power), Frederick Ernest Ehrsam (26.1% voting power), and other individual investors such as Surojit Chatterjee (current CPO “poached” from Google), Paul Grewal (former magistrate who joined Coinbase as Chief Legal Officer), and venture capitalists who early on invested on Coinbase, like Marc Andreessen (founder of a16z) and Fred Wilson (founder of Union Square Ventures), together with venture capital firms like Andreessen Horowitz, Paradigm, Ribbit Capital and Union Square Ventures.

Read More:

About The Author

Scroll to Top
FourWeekMBA