Facebook, Zuckerberg sell shares as part of secondary offering
A total of 70 million shares will be sold in the offering, made up mostly of Zuckerberg's 41.35 million shares in the company.
Facebook has registered 70 million shares of Class A common stock it plans to sell in a secondary offering, the company announced Thursday.
According to Facebook, CEO and co-founder Mark Zuckerberg will sell 41.35 million shares under the deal. Facebook will sell an additional 27.05 million shares, while venture capitalist Marc Andreessen will unload 1.6 million shares. Zuckerberg will also gift 18 million shares to charity.
The secondary offering will net Zuckerberg about $2.3 billion in cash, based on Facebook's last closing price. Facebook said that Zuckerberg is using the majority of the proceeds to pay off a tax bill he incurred after acquiring 60 million shares of Class B common stock in Facebook. Facebook will use its more than $1 billion in proceeds for "working capital and other general corporate purposes."
In addition to selling off some more shares, Facebook announced on Thursday that at the end of closing on Friday, the Standard & Poor's will add the company to its index of 500 companies. The S&P 500 is comprised of some of the largest American companies and represents about 75 percent of the country's equity market. Facebook joins Apple, eBay, Microsoft, and other prominent tech firms in the index.