Zuckerberg to sell $3.85bn worth of Facebook shares

Written By Unknown on Jumat, 20 Desember 2013 | 15.45

Facebook and its founder Mark Zuckerberg are turning to public markets to sell stock worth about USD 3.85 billion as the social media company takes advantage of its soaring stock price.

Facebook shares, which have more than doubled in value this year, slid 4.3 per cent to USD 53.25 in pre-market activity on Thursday in New York, down from its all-time record close on Wednesday.

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The company said it would offer a total of 70 million shares in a stock offering, with Zuckerberg selling 41.4m shares, worth about USD 2.3 billion at Wednesday's closing price.

Most of the founder's proceeds will be used to help settle a tax bill he will face after exercising an option to purchase 60 million shares of Facebook class B common stock. After the sale, Zuckerberg's voting control in the company will go down to 56.1 per cent from 58.8 per cent.

Facebook said the proceeds from its sale of 27 million shares, worth about USD 1.5 billion, will be used to fund the business, adding that it may be used for future acquisitions.

Marc Andreessen, the venture capitalist investor, is the only other investor selling a stake, offering about 1.65 million shares, or about a third of his stake.

JPMorgan Chase is leading the offering, which is expected to take place after the close on Friday, one person close to the matter said.

The share sale will coincide with the inclusion of Facebook's stock into the S&P 500, which comes just under 19 months after its initial public offering.



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