World’s number one social media networking site, Facebook has announced today that it is selling off about 180 million of its shares at 28 dollars – 35 dollars which is expeceted to raise about 10.6 billion dollars, according sources close to Renaissance Capital. In addition to this, the company will be selling over 157 million shares.
Out of this figure the Chief Executive Officer, Mark Zuckerberg will be selling off over 30 million of his shares with the objective of raising money to cover his multi-billion tax expenses, but has the option of buying about 120 million of what is termed a block B common stock at 6 cent. Zuckerberg’s shares to be sold is estimated to worth over 1 billion dollars.
Common stock “is a form of corporate equity ownership, a type of security”.
Apart from Zuckergerg, a number of early employees will also be selling shares worth over 5 billion dollars in Facebook’s much anticipated IPO. The following people have been named to be doing so in the coming days. They include Accel’s Jim Breyer, Peter Thiel, LinkedIn founder Reid Hoffman and Zynga CEO Mark Pincus, with Breyer’s Accel getting a better deal from it all.
Sean Parker, Facebook COO Sheryl Sandberg and Dustin Moskovitz, (co-founder of Facebook and Asana) are reported not to be selling any of their shares.
Zuckerberg still controls a majority of decisions made in the company, with 57.3% of voting power due to his 470 million shares of which he has proxy.
The numbers mentioned are quiet huge, but they only represent about a tenth and sometimes a quarter of what these employees are selling.
The social media company is currently valued at 86 billion dollars.