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Mark Zuckerberg Plans to Sell 70 Million Facebook Shares of Worth $3.9 Billion

Facebook shares fell as much as 2.7% after the company announced to sell 70 million shares of its Class A common stock as part of a whopping $3.9 billion offering. This public offering include 27M shares by Facebook, 41.35M shares by CEO Mark Zuckerberg and 1.6 million from board member Marc Andreessen.

Dec 19 2013, 1:39pm CST | by

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Mark Zuckerberg Plans to Sell 70 Million Facebook Shares of Worth $3.9 Billion
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Mark Zuckerberg Plans to Sell 70 Million Facebook Shares of Worth $3.9 Billion

Facebook wants to clear its taxes. And this is the reason that the giant social networking site today announced an underwritten registered public offering of 70 million shares of its Class A common stock. In these 70 million shares, a total of 27 million shares are being offered by Facebook itself, and a total of 43 shares are being offered by certain selling stockholders, including 41.35 million shares worth about $2.3 billion offered by CEO Mark Zuckerberg

The remaining 1.6 million shares are actually offered by a board member Marc Andreessen. This will be total offering of worth about $3.9 billion. This offering amount is based on the Facebook’s closing price yesterday. Before this announcement, Facebook shares were already dropped down by 4% at $53.54. Bloomberg reports that Facebook shares fell as much as 2.7 percent after the announcement.

This public offering of Menlo Park, California-based Facebook shares is being announced just a day before Facebook joins the S&P 500 Index. Standard & Poor's, a division of McGraw-Hill Financial Inc. (S&P), has already announced 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, effective as of the close of trading on December 20, 2013. 

Todd Lowenstein, a portfolio manager with Highmark Capital, said, “It’s never a positive sign when insiders are dumping massive quantities of stock. The company (Facebook) is now being added to the S&P 500 Index so there will be large demand for the shares from index buying and index hugging money managers. So it seems this will be absorbed without much disruption.”

Facebook is expecting that CEO Mark Zuckerberg will use the majority of the net proceeds of the sale of shares in the offering to satisfy taxes.

The joint book runners of the offering are J.P. Morgan, BofA Merrill Lynch, Morgan Stanley and Barclays. And BNP Paribas, Citigroup, RBC Capital Markets, Credit Suisse, HSBC, Standard Chartered and Piper Jaffray are serving as co-managers for the offering.

 

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Source: China Digital Times   Full article at: China Digital Times 2 hours ago
 


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Update: 10

Facebook revenue and profit soar in second quarter, stock hits high

Source: San Jose Business Journal

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Facebook posted large gains in both revenue and profit in the second quarter, handily beating analysts' expectations as advertising sales soared. The stock hit an all-time high in after hours trading, hitting $74.17. It has nearly tripled since last July and Facebook is the best performing stock on the S&P 500. The world's largest social network's profit grew 115 percent to $1.7 b ...
Source: San Jose Business Journal   Full article at: San Jose Business Journal 2 hours ago
 

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Update: 9

Random Ridiculousness: Anti-Abortion Protestors Crash Church Service & Tell Pro-Choice Members To “Repent”

Source: Bossip.com

Anti-Abortion Protestors Storm Pro-Choice Church Service via Think Progress Hundreds of anti-choice activists are currently congregating in New Orleans to stage protests against abortion around the city, an event that’s expected to last all week long. So far, tensions have come to a head in an unexpected place: the sanctuary of a church, where abortion opponents interrupted a service to tell congregants that they don’t have a “true faith” because their denomination s ...
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Update: 7

Facebook profit more than doubles as mobile marches on

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Update: 6

Viral 'Jews and Arabs Refuse to Be Enemies' campaign inspires hope among violence

Source: Today.com

It’s the social media crusade that can be sized up in its mighty hashtag: #JewsandArabsRefuseToBeEnemies.It began several weeks ago after two Hunter College students in New York grew weary of seeing their social media feeds load up with hateful comments.The two students, Dania Darwish, a New Yorker originally from Syria, and Abraham Gutman, an Israeli from Tel Aviv, started a Facebook pa ...
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Update: 5

Facebook rides boom in mobile ads

Source: FT

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Net income surges past expectations to $1.4bn as mobile advertising makes up 62 per cent of total ad revenue in the third quarter from 41 p ...
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Update: 3

Hire the Best for Success, Whatever They Look Like

Source: Forbes

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In a recent article about Facebook’s “diversity”, a major news publication reported their employment as 69% male, 57% white, 34% Asian, 4% Hispanic  2% black and 3% other ethnics.  There was no mention of age or religion, or other important “protected” demographic categories. Their ...
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Update: 2

NJ girl who sued parents gets restraining order against boyfriend

Source: WPIX.com

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Rachel Canning appears before a New Jersey judge, who denied her request to demand tuition and financial support from her parents. NEW JERSEY (PIX11) – The New Jersey teenager who moved out of her parents’ home and then sued them for child support and tuition is back in the headlines after slapping her boyfriend with a restraining order. Rachel Canning, 18, told police her boyfriend physically attacked her in the street.  Her boyfriend, 18-year-old Lucas Kitzmiller ...
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Old man tosses canes, starts dancing

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<a href="/latest_stories/all/all/20" rel="author">Sumayah Aamir</a>
Sumayah Aamir (Google+) has deep experience in analyzing the latest trends.

 

 

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