Forbes: Facebook Offering More Shares As Zuckerberg Gives Almost $1 Billion To Charity
FORBES, Dec 19, 2013 | FULL STORY
Facing a lawsuit over the handling of its 2012 IPO, Facebook is taking a do-over, of sorts.
The company is set to offer an additional 70 million shares, an amount worth about $3.9 billion at the current price of more than $55 a share. Most of them, some 41 million, are common Class A shares from the personal holding of founder Mark Zuckerberg. Another 27.05 million belong to Facebook and will be offered to index funds in connection with the company’s joining of the S&P 500.
Zuckerberg will use the balance of the proceeds to pay the taxes on his exercise of 60 million Class B shares. With 10 votes a piece to the single vote of the Class A shares, they will allow him to further consolidate his control of the company, boosting his voting power to 63%.
Zuckerberg is also using the occasion to make a huge donation to charity, earmarking 18 million shares — worth nearly $1 billion — as a gift. A Facebook spokeswoman says the shares will go to the Silicon Valley Community Foundation. That’s the same cause to which he donated an identical 18 million shares almost exactly 1 year ago.