Facebook, Zuckerberg Selling Off Billions in Stock

Now that Facebook is getting ready to join the Standard & Poor's 500-stock index, the social network has announced that it is selling off millions of its shares. In total, the massive sale of 70 million shares will be used to open up more shares on the new index and it may net Facebook and its executives as much as $3.9 billion.

Facebook will be selling off 27 million of its Class A public shares. The remaining portion of shares will primarily come from Facebook co-founder and CEO Mark Zuckerberg and Silicon Valley investor Marc Andreessen.

A Lot of Money

Now that Facebook will be able to pull in billions from the sale, it will be interesting to see what the social network does with the money. Even though it may have had an unsuccessful IPO, Facebook has been doing relatively well on the stock market and as long as its share value doesn't experience a massive drop before Thursday's closing, Zuckerberg can expect to see nearly $4 billion.

In the spirit of giving (maybe because Christmas is coming up), the network's SEC filing has noted that Zuckerberg will be giving away $1 billion worth of his own personal shares to one lucky individual. Facebook has been quiet regarding what it will do with the billions of dollars brought in from the sale but it did state that the money would be used as working capital.

Even though the sale will lower Zuckerberg's voting rights within the company from 65.2 percent to 62.8 percent, the decrease will not actually affect Zuckerberg's power within Facebook. The Facebook CEO has already let people know that he will likely be using his personal money earned from the sale to pay taxes.

A Bad Sign

While the sale of Class A company shares makes sense as Facebook will need...

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