Why Is $3.85B in Facebook Stock on the Market?
According to a statement on Friday, Facebook has priced 70 million shares at $50.05 per share. Of those shares, 27 million will be offered by the company itself, 41.35 million will be offered by Chief Executive Officer Mark Zuckerberg, and company board member Marc Andreessen will offer 1.65 million shares. The newest stock offering will mostly be used to pay taxes incurred from exercising options, writes Bloomberg.
As Bloomberg notes, the newest Facebook stock offering corresponds with the company’s inclusion in the Standard & Poor’s 500 Index — something that will create demand from index funds and other institutions looking to purchase Facebook stock. Facebook has stated that the money raised from the stock offering will go towards working capital and corporate purposes.