Mark Zuckerberg announces $2.3bn Facebook share sale
Facebook shares fall as much as 5 per cent in pre-market trading
Facebook founder and chief executive Mark Zuckerberg is set to sell $2.3bn worth of shares in the social network to pay a tax bill
His sale of 41.4 million shares in the social network is part of a broader follow-on public offering of 70 million Class A common shares, that will also see Facebook sell another 27 million shares.
The stock, which has doubled in value this year after a bumpy initial public offering in 2012, fell close to 5 per cent in pre-market trading as investors reacted to the news ahead of the US opening bell.
“Facebook intends to use the net proceeds of the offering for working capital and other general corporate purposes,” the company said in a statement.
“Facebook will not receive any proceeds from the sale of shares by the selling stockholders"
The company said, however, that most of the proceeds of Zuckerberg’s sale will be used to pay taxes he is incurring in connection with the exercise of an option to buy another 60 million shares.
The sale will reduce Zuckerberg's voting power to 56.1 per cent from 58.8 per cent.
JP Morgan, BofA Merrill Lynch, Morgan Stanley and Barclays will serve as joint bookrunners for the offering.
- 1 PlayStation and Xbox hacked by Lizard Squad
- 2 Katie Hopkins speaks out on childhood obesity: 'Parents of fat children should be prosecuted for child cruelty'
- 3 The Grace Dent Christmas Questionnaire
- 4 The 'Black Museum': After 150 years, public set to see exhibits from police’s grisly crime museum
- 5 British actor Idris Elba cannot star as James Bond because he is black, says shock jock Rush Limbaugh
PlayStation and Xbox hacked by Lizard Squad
Antonio Martin shooting: Black teenager may have tried to ambush patrolman, says police officer's lawyer
Katie Hopkins speaks out on childhood obesity: 'Parents of fat children should be prosecuted for child cruelty'
Boxing Day snowfall set to push even more bargain-hunters online for sales
The 'Black Museum': After 150 years, public set to see exhibits from police’s grisly crime museum
British actor Idris Elba cannot star as James Bond because he is black, says shock jock Rush Limbaugh
Rozanne Duncan: Ukip expels councillor for 'jaw-dropping' comments made in BBC TV interview
Germany anti-Islam protests: 17,000 march on Dresden against 'Islamification of the West'
Ukip member gets into Christmas spirit with Union Flag plea to Santa 'for our country back'
BBC director Danny Cohen: Rising UK antisemitism makes me feel more uncomfortable than ever
Alex Salmond has 'broken his word to the Scottish people' says Scottish Lib Dem leader
iJobs Money & Business
Highly Competitive: Selby Jennings: Our client, a leading European Oil trading...
£43500 per annum + pension + holidays: The Jenrick Group: Night Shift Operatio...
£20000 - £25000 per annum + OTE £40,000 + Car + Pension: SThree: SThree are a ...
£20000 - £25000 per annum + OTE £35K: SThree: We consistently strive to be the...