Key Takeaways
- • Peter Thiel stepped down from Facebook's board after more than 15 years, per The Washington Post, and will focus on helping pro-Trump candidates win November 2022 midterm elections.
- • Thiel is funding the Senate campaigns of close associates J.D. Vance in Ohio and Blake Masters in Arizona, a more direct political role than he has previously played.
- • Thiel's venture firms, including Founders Fund, Mithril Capital Management and Valar Ventures, together manage nearly $20 billion according to PitchBook; his net worth is about $8 billion per Bloomberg News.
- • Palantir, which Thiel co-founded and chairs, derives more than half its revenue from government clients, according to its latest earnings report, linking his investment interests to federal contracting.
- • ProPublica reported that Thiel shielded billions in investments from taxation through a Roth IRA, prompting a Democratic congressional bill to impose heavy taxes on such withdrawals.
Summary
Facebook announced that billionaire investor Peter Thiel would step down from its board after more than 15 years, a departure that The Washington Post reports will let the 54-year-old concentrate on supporting pro-Trump candidates in the November midterm elections. A person familiar with his thinking, speaking on condition of anonymity, said he intends to focus on that work. A spokesperson for Thiel did not respond to a request for comment.
Thiel's political involvement dates to the 1980s, when he helped establish a conservative journal at Stanford University. He later co-founded PayPal, which was acquired by eBay, and used the proceeds to become one of Facebook's first major outside investors. He supported Donald Trump's 2016 presidential campaign with at least $1.25 million in donations, according to The New York Times, and served on Trump's transition team as a liaison to Silicon Valley. He now funds the Senate campaigns of J.D. Vance in Ohio and Blake Masters in Arizona.
Thiel's core business remains venture capital. Per PitchBook, the firms he helped create, including Founders Fund, Mithril Capital Management and Valar Ventures, manage nearly $20 billion collectively. Several holdings stand to benefit from government spending. Palantir, which Thiel helped found in 2003, counts agencies such as the Department of Defense among its largest clients, and more than half its revenue comes from government customers. Anduril, which builds surveillance towers and drones, received a five-year Trump administration contract in 2020. Thiel's net worth is about $8 billion according to Bloomberg News.
Thiel's tax position has drawn scrutiny. ProPublica documented his use of a Roth individual retirement account to shield billions from taxation, and Democrats in Congress proposed legislation that would impose large tax bills on wealthy Roth holders who withdraw funds. Thiel has also donated to anti-tax groups such as the Club for Growth.
For Facebook, Thiel's departure may ease internal criticism. A 2019 Wall Street Journal report said he had pushed CEO Mark Zuckerberg toward a more laissez-faire approach to moderating content and ads, and liberal employees had objected to his board seat. His formal role was largely advisory, since Zuckerberg retains majority voting control. The Times reported in January that Boldend, a Founders Fund-backed company, claimed it had developed the ability to hack WhatsApp, a Facebook product. Thiel has also funded Rumble, a video platform with a lighter content moderation approach than Facebook or YouTube.
Thiel's political involvement dates to the 1980s, when he helped establish a conservative journal at Stanford University. He later co-founded PayPal, which was acquired by eBay, and used the proceeds to become one of Facebook's first major outside investors. He supported Donald Trump's 2016 presidential campaign with at least $1.25 million in donations, according to The New York Times, and served on Trump's transition team as a liaison to Silicon Valley. He now funds the Senate campaigns of J.D. Vance in Ohio and Blake Masters in Arizona.
Thiel's core business remains venture capital. Per PitchBook, the firms he helped create, including Founders Fund, Mithril Capital Management and Valar Ventures, manage nearly $20 billion collectively. Several holdings stand to benefit from government spending. Palantir, which Thiel helped found in 2003, counts agencies such as the Department of Defense among its largest clients, and more than half its revenue comes from government customers. Anduril, which builds surveillance towers and drones, received a five-year Trump administration contract in 2020. Thiel's net worth is about $8 billion according to Bloomberg News.
Thiel's tax position has drawn scrutiny. ProPublica documented his use of a Roth individual retirement account to shield billions from taxation, and Democrats in Congress proposed legislation that would impose large tax bills on wealthy Roth holders who withdraw funds. Thiel has also donated to anti-tax groups such as the Club for Growth.
For Facebook, Thiel's departure may ease internal criticism. A 2019 Wall Street Journal report said he had pushed CEO Mark Zuckerberg toward a more laissez-faire approach to moderating content and ads, and liberal employees had objected to his board seat. His formal role was largely advisory, since Zuckerberg retains majority voting control. The Times reported in January that Boldend, a Founders Fund-backed company, claimed it had developed the ability to hack WhatsApp, a Facebook product. Thiel has also funded Rumble, a video platform with a lighter content moderation approach than Facebook or YouTube.
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