Zuckerberg to sell Facebook shares worth about $2.3 billion

Thu Dec 19, 2013 3:56pm EST

Facebook CEO Mark Zuckerberg (R) speaks during an onstage interview with James Bennet (L) of the Atlantic Magazine in Washington, September 18, 2013. REUTERS/Jonathan Ernst

Facebook CEO Mark Zuckerberg (R) speaks during an onstage interview with James Bennet (L) of the Atlantic Magazine in Washington, September 18, 2013.

Credit: Reuters/Jonathan Ernst

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(Reuters) - Facebook Inc founder and CEO Mark Zuckerberg will sell 41.4 million shares worth about $2.3 billion to pay a tax bill, as part of an offering by the social network of 70 million Class A common shares.

Facebook shares, which have doubled in value this year, were down 4 percent at $53.54 before the bell.

Zuckerberg's sale will reduce his voting power to 56.1 percent from 58.8 percent, the company said in a filing on Thursday.

Facebook said it expects Zuckerberg to use most of the net proceeds from the sale to satisfy taxes related to the exercise of an option to buy 60 million Class B shares.

Each Class A share is entitled to one vote, while Class B shares are entitled to 10 votes and are convertible at any time into one Class A share.

Board member Marc Andreessen will also sell 1.65 million Class A shares, while Facebook will sell 27 million.

J.P. Morgan, BofA Merrill Lynch, Morgan Stanley and Barclays are joint bookrunners for the offering.

(Reporting by Sruthi Ramakrishnan in Bangalore; Editing by Saumyadeb Chakrabarty)

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Comments (3)
PopUp wrote:
Latest check on the markets, Facebook is at $55.and change. Not exactly doubled. People who use Facebook are fools. Fools who love to be tracked by marketers selling schlock from China and financial services, like 401K that leave investors money 66% less at retirement. (You invest $100,000. and at retirement, you have about $35,000. in your account. Fees eat the rest. And you have a Facebook account.

Dec 19, 2013 11:03am EST  --  Report as abuse
PopUp wrote:
Latest check on the markets, Facebook is at $55.and change. Not exactly doubled. People who use Facebook are fools. Fools who love to be tracked by marketers selling schlock from China and financial services, like 401K that leave investors money 66% less at retirement. (You invest $100,000. and at retirement, you have about $35,000. in your account. Fees eat the rest. And you have a Facebook account.

Dec 19, 2013 11:03am EST  --  Report as abuse
c4keislie wrote:
Actually FB shares HAVE doubled in the last year. Their 52 week low is 22.678 and exactly 1 year ago they were at 27 and change. This is almost an EXACT doubling in the last year.

Dec 20, 2013 9:38am EST  --  Report as abuse
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