The $16 billion IPO of Facebook Inc. has made Mark Zuckerberg, the founder, 29th richest man in the world.
The most popular social networking website in the world, Facebook sold 421.2 million shares at a price of $38 each. Given that pricing, Zuckerberg’s holdings in shares and options of 503.6 million, values at $19.1 billion taking him past the co-founders of Google Inc. Larry Page and Sergey Brin.
It’s a huge success for everyone in the company and should not been seen in any form as making Zuckerberg wealthy or not, according to the author of “The Facebook Effect”, David Kirkpatrick.
As a 19-year college student, the CEO had started the firm in his dorm room for his classmates in Harvard University. The Menlo Park, California based firm has more than 900 million users as of now and generated revenue of $3.7 billion last year.
During the offering Zuckerberg sold off 30.2 million shares worth $1.15 billion, the proceeds for which will be used in taxes for the exercise of the 60 odd million stock options. The valuation of $104.2 billion will crystallize the positions of other co-founders of the firm as well. Dustin Moskovitz, Zuckerberg’s roommate at Harvard, owning 133.7 billion Class B shares of the firm is now worth $5.1 billion. If the underwriters would be willing to exercise the buying the additional stock, he will be selling 7.5 million of those shares.
Moskovitz who was the chief technology officer founded Asana Inc. with colleague Justin Rosenstein in 2008. They had received $9 million funding from Andreessen Horowitz and Benchmark Capital in 2009.
Eduardo Saverin, another co-founder, who has an estimated $2.7 billion to his name, owned 4 % of the shares before the IPO, according to the filings available with SEC. He had renounced citizenship of U.S last year and is now a resident of Singapore. His move did manage to save for him, $67 million in taxes.
Christopher Hughes, also a co-founder, owning 22 million shares is worth $836 million now. After selling of his hoard in Facebook and after buying the new republic magazine two months back for less than $5 million has more than $100 million only in cash and real estate.
Peter Thiel, the co-founder of PayPal Inc., had provided for the first outside investment in Facebook in 2004. His net worth today is $2.7 billion. His ownership in Facebook is through holding firms like Rivendell One LLC and Lembas LLC. He sold off 16.8 million shares in the IPO and another $28 million shares as a part of a treaty.
Facebook which is trailing its 12-monthly sales has been valued at 28 times, and double than Google’s valuation in 2004. It begins trading on Nasdaq today.