Facebook chief executive Mark Zuckerberg will be selling 41.4 million shares worth $2.3 billion as part of Facebook's follow-on offering of 70 million shares
Silicon Valley's Facebook Inc. chief executive Mark Zuckerberg is offering more than 41 million shares of Facebook to the public as part of a follow-on offering worth about $3.9 billion.
According to a report by Los Angeles Times, Zuckerberg along with the company and board member Marc Andreessen are offering a total of 70 million shares of Class A stock in the follow-on sale. This is Facebook's first follow-on offering since its initial public offering in May 2012.
Time in a separate report said that Zuckerberg will sell 41.4 million shares worth $2.3 billion in the stock offering. This will reduce his voting power to 62.8% from 65.2%. Facebook's filing said that Zuckerberg will use most of the money raised to pay taxes. The said taxes are connected to his exercising an option to buy 60 million Class B common stock.
Meanwhile, venture capitalist and board member Marc Andreessen will also sell some 1.6 million shares worth about $89 million. Facebook will sell the remaining 27 million shares, the report said.
Facebook said it did not currently have any specific uses for the money it would raise. It had planned to offer more shares to the public after its IPO but abandoned the idea after its shares plunged below the $38 IPO price, LA Times said.