Facebook Selling 70 Million Shares In Secondary Offering


Facebook

Facebook stock has come a long way from record lows of below $20, and today announced it would be offering 70 million additional shares.

Part of a secondary offering, pricing is said to be set before after hours on Friday, December 20, and the shares will be available after pricing is announced.

With Facebook stock currently trading above $54, the social network is estimated to raise around $3.8 billion.

From The New York Times:

The company itself will offer 27 million Class A shares, proceeds of which will be used for working capital. The company said it had no specific plans for the extra cash, but hinted that it could be used to fund future deals.

CEO Mark Zuckerberg is putting up 41.35 million of his own shares to reportedly pay taxes towards his stock options.

Zuckerberg currently has majority voting power at Facebook at 58.8 percent, and it will be reduced by only 2.6 percent.

He also plans on donating 18 million shares worth upwards of $1 billion by the end of 2013 to be distributed between the Zuckerberg Foundation, The Breakthrough Prize in Life Science and the Silicon Valley Community Foundation.

Facebook stock is currently sitting above $54, and earlier this week it acquired real-time sports data company SportsStream for an undisclosed sum.


Mike Stenger

Lover of technology, Mike often makes jokes that nobody laughs at.

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