Facebook to raise $1.5B in secondary offering

The social network prices its second batch of shares at $55.05 a piece.

Facebook CEO Mark Zuckerberg
Facebook CEO Mark Zuckerberg James Martin/CNET

Facebook said Friday that it has priced the 70 million shares that the company and its insiders are selling through a secondary offering at $55.05. Facebook, itself, is selling a little more than 27 million shares, which means it will earn close to $1.5 billion through the sale.

The social network announced earlier this week that it would put the shares up for sale. In the offering, CEO and co-founder Mark Zuckerberg will sell 41.35 million of his own shares and make around $2.28 billion to cover his tax obligations. He is also giving 18 million shares, or nearly $1 billion, to charity. Venture capitalist Marc Andreessen, meanwhile, will offload 1.6 million of his shares.

Facebook will use the proceeds for working capital and other corporate purposes, the company said in a press release.

The offering is expected to close on December 26. Facebook's stock finished Friday at $55.07 and is trading up slightly on the after-hours market.

 

Join the discussion

Conversation powered by Livefyre

Don't Miss
Hot Products
Trending on CNET

HOT ON CNET

Want affordable gadgets for your student?

Everyday finds that will make students' lives easier: chargers, cables, headphones, and even a bona fide gadget or two!