Facebook’s co-founder Zuckerberg is shifting the bulk of the stock with 41.4 million, worth around $2.3 billion, which is going towards a tax bill in relation to the purchase of 60 million Class B shares. Facebook will sell 27 million, while Andreessen will sell 1.65 million shares.
As TechCrunch notes, full details within the SEC filing reveal what the proceeds will be used for – working capital and “other general corporate purposes”, though the filing does stress it doesn’t have any specific plans for the net proceeds. But it does say that a portion may be used for “acquisitions of complementary businesses, technologies, or other assets.”
“We will not receive any proceeds from the sale of shares of Class A common stock by the selling stockholders. In connection with this offering, Mark Zuckerberg, our Chairman and CEO, will exercise, in full, an outstanding stock option to purchase 60,000,000 shares of Class B common stock and will then offer 41,350,000 of those shares as Class A common stock in this offering. We expect that the majority of the net proceeds Mr. Zuckerberg will receive upon such sale will be used to satisfy taxes that he will incur in connection with the option exercise.”
Facebook shares have more or less doubled in value over the past year following a shaky start to its post-IPO company status, so now isn’t a bad time to sell. The closing price on Facebook shares yesterday was $55.57, which would value this offering at close to $4 billion – however the final value will be based on today’s closing figure.
With Zuckerberg’s sale, this also means his voting power will fall from 58.8% to 56.1%.
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