Filed under: News | Technology News


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

11 Updates
Mark Zuckerberg Plans to Sell 70 Million Facebook Shares of Worth $3.9 Billion
Photo Credit: Getty Images

YouTube Videos Comments

Full Story

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.


You Might Also Like


Sponsored Update

Update: 11

The 404 1,471: Where if this, then that (podcast)

Source: CNet

Jill Schlesinger is back on the show to help uncover the Internet magic that is IFTTT, failed NYPD hashtags and discuss Facebook and Apple e ...
Source: CNet   Full article at: CNet 25 minutes ago


Update: 10

Robin Pecknold Explains Why Fleet Foxes Went on Hiatus

Source: Flavorwire

Robin Pecknold of US band Fleet Foxes pe
It’s been a couple years since we’ve heard from Fleet Foxes, the favorite folkies at big outdoor music festivals. Turns out frontman Robin Pecknold pulled a Rivers Cuomo and went back to school after the release of their second album, 2011′s Helplessness Blues. He explains with a post on the Sub Pop band’s Facebook page this afternoon: For anyone who’s curious, this is a short Fleet Foxes update – been a while! So, after the last round of touring, I d ...
Source: Flavorwire   Full article at: Flavorwire 38 minutes ago

More From the Web

Update: 9

Facebook Purchase of Oculus VR Approved by FTC

Source: IGN

Future Of Film: Is Non Linear Storytelling the Future of Film - 2013 Tribeca Film Festival
Regardless of how you might feel about Facebook's recent acquisition of Oculus VR and its Rift headset, there's no denying the influx of cash will help push the device to market. According to Reuters, the U.S. Federal Trade Commission has now granted approval on the deal. Facebook paid $2 billion to pick up Oculus VR, and the FTC was tasked with making sure the acquisition did not create ...
Source: IGN   Full article at: IGN 40 minutes ago

Update: 7

Instagram now personalizing photos, videos for exploration

Source: CNet

With content picked just for you, the Facebook-owned app hopes to send you down a never-ending path of disc ...
Source: CNet   Full article at: CNet 43 minutes ago

Update: 6

Here’s how to see everything that Facebook knows about you

Source: BGR

Watch Dogs is already one of the most hyped game releases of the spring, but Ubisoft's clever marketing campaign might convince a whole new crowd to check the game out. Digital Shadow is a website being run by Ubisoft which allows Facebook users to see just how vulnerable their information could be to an outside source. By allowing the site to access your account, Digital Shadow will let you know within seconds which contacts you regularly interact with, which words y ...
Source: BGR   Full article at: BGR 45 minutes ago

Update: 5

L.A. Sheriff is Wrong for Spying on Compton Residents

Source: EURweb

I am not oblivious to the fact that I can be watched and tracked by the powers that be. I realize that when I check-in on Facebook, drive my car, or use my cellphone, I am practically inviting them to do so. I resigned myself a ...
Source: EURweb   Full article at: EURweb 46 minutes ago

Update: 4

James Franco and Keegan Allen: Shirtless in Bed for Some Reason!

Source: The Hollywood Gossip

An Alternative View Of The 69th Venice Film Festival
James Franco sure does love getting shirtless with other men. We're not judging, we're just taking note of the actor's Bound 3 video alongside a half-naked Seth Rogen and also of a picture that went live this week on his Instagram account. It's of Franco and Pretty Little Liars star Keegan Allen, both relaxing happily in bed, no clothes to be seen: Wrote Allen of the photo: "Loved seeing ...
Source: The Hollywood Gossip   Full article at: The Hollywood Gossip 1 hour ago

Update: 3

Christian Harding: Farewell article

Source: The Snapper

Hard Rock Cafe Nice Inauguration
Christian Harding Staff Writer Well, this is it.Back in September of last year, the first article I had written for The Snapper as a senior was called ‘The Last First Article Ever’ (or something along those lines). In that article, I briefly reminisced about shit and ruminated about what the year ahead of me held in store. And here we are, a breezy seven months later and I’m facing the distinct challenge of deciding what I want my last words in this pape ...
Source: The Snapper   Full article at: The Snapper 1 hour ago

Update: 2

Report: Divorced, Remarried Argentine Woman Says Pope Francis Told Her She May Receive Communion

Source: Big Government

Pope Francis Attends Weekly Audience
The Telegraph reports that a divorced and remarried Argentine woman states Pope Francis telephoned her at home and told her she “is not doing anything wrong” if she receives communion. According to the report, Argentinian Jacqui Lisbona wrote to the pontiff six months ago, saying she was distressed that, as a Catholic who had divorced over 20 years ago and then remarried in a civil ceremony, she was not permitted by Catholi ...
Source: Big Government   Full article at: Big Government 1 hour ago

Update: 1

How-to perform candy crush saga the simplest way

Source: Experience Project

Candy crush Saga game by King, is one of the most-played Facebook activities now. Participants must crush goodies of variou ...
Source: Experience Project   Full article at: Experience Project 1 hour ago

Shopping Deals


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




blog comments powered by Disqus

Latest stories

Blu Products Studio 6.0 HD smartphone lands for $249
Blu Products Studio 6.0 HD smartphone lands for $249
Smartphone has a big screen and a small price
Fisker Karma might go back into production in mid-2015
Fisker Karma might go back into production in mid-2015
Two other vehicles may enter production in the next few years
Robin Roberts hits Letterman to show off new book
Robin Roberts hits Letterman to show off new book
Roberts is a Good morning America co-host
Five former Buffalo Bills cheerleaders sue for back pay and more
Five former Buffalo Bills cheerleaders sue for back pay and more
Buffalo Jills cheerleaders sue the Buffalo Bills

The Hottest Photos of Victoria's Secret Fashion Show 2013