Facebook CEO Mark Zuckerberg to sell 41.35M shares

!zuck4 copy

Facebook announced a proposed follow-on stock offering Thursday, noting that 70 million shares of Facebook stock will hit the market, most of which will come from CEO and Co-Founder Mark Zuckerberg.

Facebook is conducting a secondary offering of 70 million Class A shares, 41.35 million of which will come from Zuckerberg (the company notes that the majority of the shares are being sold to cover taxes on options being exercised). Facebook board member Mark Andreessen is selling 1.6 million shares and Facebook itself is offering 27.05 million newly-issued shares.

Zuckerberg is also giving 18 million shares to charity.

As of 11:10 a.m. PST, Facebook’s share value is worth $54.64.

Facebook announced the news in a press release:

Standard & Poor’s, a division of McGraw-Hill Financial Inc. (S&P), has announced that, effective as of the close of trading on December 20, 2013, it plans to include Facebook’s Class A common stock in the S&P 500 Index, which is comprised of 500 common stocks that S&P selects. Shares of Facebook’s Class A common stock will be offered primarily to index funds whose portfolios are primarily based on stocks included in the S&P 500 Index.

Facebook intends to use the net proceeds of the offering for working capital and other general corporate purposes.  Facebook will not receive any proceeds from the sale of shares by the selling stockholders. Facebook expects that the majority of the net proceeds Mr. Zuckerberg will receive upon the sale of shares in the offering will be used to satisfy taxes that he will incur in connection with his exercise, in full, of an outstanding stock option to purchase 60,000,000 shares of Class B common stock.

Readers: How will this affect Facebook’s value on Wall Street?

Image by Courtney Rundles.

Social Media 101

Mediabistro Course

Social Media 101

Get hands-on social media training for beginners! Starting November 10, hear from our expert speakers on the  best practices for getting set up on the major social media platforms, how to create meaningful content, and engage with your audience across sites. 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 Account Manager for Beauty PR Agency

Creative Media Marketing
New York, NY

Director of Digital Strategy

Beauty Public Relations Agency
New York, NY

Social Media Associate

Petrol Advertising
Burbank, CA

Social Media Manager

Aeon Media
San Francisco, CA

Account Executive- Healthcare PR and Social Media

Berry & Company Public Relations
New York, NY

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