Related News
Zuckerberg to sell part of stake
Print Edition
Facebook chief Mark Zuckerberg will sell a chunk of his stake in the company, cashing in some US$2.3 billion, as part of a new share offering by the huge social network.
A Facebook filing yesterday said the company would sell 70 million shares in a follow-on offering to the huge initial public offering in May 2012.
Of the total amount, Zuckerberg will sell around 41 million shares, mainly to satisfy his tax obligations, the company said in a statement.
The 27 million new shares at Facebook’s latest closing price of US$55.57 would raise some US$1.5 billion for the company “for working capital and other general corporate purposes,” the statement said.
Zuckerberg’s sale will have little impact on his control of the company he co-founded from his Harvard University dormitory.
He owns an estimated 29 percent of Facebook capital, but based on the dual classes of stock, he will still hold 56.1 percent of the voting rights after the new offering, down from 58.8 percent.
With the proxies he holds for other shareholders, Zuckerberg will control 62.8 percent of the voting rights after the new offering, down from 65.2 percent.
The company said Zuckerberg will exercise his option to purchase 60 million Class B shares and then convert the shares to Class A for the sale.
Each Class A share has one voting right, while Class B shares have 10 voting rights.
Another early Facebook investor, entrepreneur Marc Andreessen, will sell some 1.6 million shares in the offering.
The filing with the Securities and Exchange Commission also noted that Zuckerberg plans to donate 18 million shares to an unspecified beneficiary. He and his wife Priscilla last year gave a similar amount to a Silicon Valley foundation.
One of the reasons for the new Facebook offering is to meet expected demand with Facebook being added to the Standard & Poor’s 500 index.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
