Zuckerberg sells as Facebook offers new shares

Posted on December 20, 2013
The share sell-off will allow Mark Zuckerberg to retain power over Facebook

The share sell-off will allow Mark Zuckerberg to retain power over Facebook
Facebook chief Mark Zuckerberg will sell a chunk of his stake in the company, cashing in some $2.3 billion, as part of a new share offering by the huge social network.

A Facebook filing Thursday said the company would sell 70 million shares in a follow-on offering to the huge initial public offering in May 2012.

Of the total amount, Zuckerberg will sell around 41 million shares, mainly to satisfy his tax obligations, the company said in a statement.

The 27 million new shares would raise some $1.5 billion for the company “for working capital and other general corporate purposes,” the statement said.

Zuckerberg’s sale will have little impact on his control of the company he co-founded from his Harvard University dormitory.

He owns an estimated 29 percent of Facebook capital, but based on the dual classes of stock, he will still hold 56.1 percent of the voting rights after the new offering, down from 58.8 percent.

With the proxies he holds for other shareholders, Zuckerberg will control 62.8 percent of the voting rights after the new offering, down from 65.2 percent.

Read more at: Phys.org