Latest News: Technology |  Celebrity |  Movies |  Apple |  Cars |  Business |  Sports |  TV Shows |  Geek

Trending

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

1 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

Updates


Sponsored Update


Advertisement


More From the Web

Shopping Deals

 
 
 

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

 

 

Comments

blog comments powered by Disqus

Latest stories

Ariana Grande says her Leaked Naked Pics are Fake
Ariana Grande says her Leaked Naked Pics are Fake
The pop princess, Ariana Grande said that her leaked naked pics were fake samples.
 
 
Kyle Busch and Truex Jr. get Angry as Hell with each other
Kyle Busch and Truex Jr. get Angry as Hell with each other
The two race car drivers, Kyle Busch and Truex Jr., got angry as hell with each other on and off the track.
 
 
OnePlus One pre-order system coming in October, Is it too late?
OnePlus One pre-order system coming in October, Is it too late?
In an AMA session on Reddit, the company said that it will launch a pre-orders system sometime in October.
 
 
Kelly Osbourne and others send “Get Well” Wishes to Joan Rivers
Kelly Osbourne sends “Get Well” Wishes to Joan Rivers
Kelly Osbourne and several other celebs sent “get well” wishes to a bedridden Joan Rivers. They all wished her a quick recovery from the predicament she was in currently.
 
 
 

About the Geek Mind

The “geek mind” is concerned with more than just the latest iPhone rumors, or which company will win the gaming console wars. I4U is concerned with more than just the latest photo shoot or other celebrity gossip.

The “geek mind” is concerned with life, in all its different forms and facets. The geek mind wants to know about societal and financial issues, both abroad and at home. If a Fortune 500 decides to raise their minimum wage, or any high priority news, the geek mind wants to know. The geek mind wants to know the top teams in the National Football League, or who’s likely to win the NBA Finals this coming year. The geek mind wants to know who the hottest new models are, or whether the newest blockbuster movie is worth seeing. The geek mind wants to know. The geek mind wants—needs—knowledge.

Read more about The Geek Mind.