Following a Climbing Valuation, Facebook Splits Stock 5-for-1

Companies sometimes split their stock to match industry standard prices, or make it more affordable for smaller investors, and sometimes they’re also signaling to the market that the share price has been growing, and will continue to do so. For one or more of those reasons, Facebook is announcing today that it splitting its stock 5-for-1, meaning that it has increased the amount of all outstanding stock by five times without changing the value of the company itself.

The company tells The Wall Street Journal that it believes “employees will appreciate receiving more shares even though the overall value of any particular grant wouldn’t change,”and notes that it previously split stock 4-for-1 in July of 2006 and again in October of 2007.

Facebook doesn’t share its valuation, but private secondary stock sales have put higher and higher since last year, and near $30 billion today. Investor and board member Peter Thiel confirmed that approximation at the TechCrunch Disrupt conference earlier this week, and said he thinks the company is one of the “least overvalued or most undervalued” in tech today.

Its revenues have increased quickly this year. Chief executive Mark Zuckerberg confirmed to us in June that the company was on track to make between $1 billion and $1.1 billion this year. That number could end up higher due to increased brand and performance advertising and virtual goods revenue growth.

Social Media 101

Mediabistro Course

Social Media 101

Get hands-on social media training for beginners in our online boot camp, Social Media 101! Starting September 4, social media and marketing experts will teach you the best practices to be successful on social. Hurry, this boot camp starts next week! Register now!

 

Leave a Reply

Get the latest news in your inbox
interested in advertising with inside facebook?

Social Media Jobs
of the Day

Social Media Manager

Mother Nature Network
Atlanta (or remote), GA

Social Media Editorial Fellowship

Brooklyn Magazine
Brooklyn, NY

Senior Social Media Strategist

Current
Chicago, IL

Senior Associate,Digital(Social Media/Newsletters)

The Pew Charitable Trusts
Washington, DC

Senior Copywriter

John McNeil Studio
Berkeley, CA

Featured Company

Join leading companies like this one and recruit from the nation's top media job seekers on the Mediabistro Job Board. Every job post comes with our satisfaction guarantee. Learn More
 

Our Sponsors

Mediabistro A division of Prometheus Global Media home | site map | advertising/sponsorships | careers | contact us | help courses | browse jobs | freelancers | content | member benefits | reprints & permissions terms of use | privacy policy Copyright © 2014 Mediabistro Inc. call (212) 389-2000 or email us