Facebook's biggest winners look to rich payday
Here are some of the individuals and firms that stand to make the most from Facebook's IPO, from Accel to, of course, Zuckerberg.
When Facebook goes public in a deal that could value the company at $100 billion, small fortunes will be made.
Here are some of the individuals and firms that stand to make the most from Facebook's IPO.
Mark Zuckerberg: He can now officially change his surname to Zuckerbucks. With his 28.2 percent ownership in Facebook, the paper wealth of Facebook co-founder Mark Zuckerberg now serves as an eternal rejoinder to the legion of armchair critics--and where are they now?--who thought that the then-22-year-old was bull goose loony for rejecting Yahoo's $1 billion buyout offer in 2006. Maybe they should ask the same question of Yahoo's former CEO, Terry Semel, who reportedly refused to up the offer for the up-and-coming social network.
Little did he--or the rest of us--know. But Zuckerberg was determined to stick it out and stay true to his vision for Facebook. Has being right ever been so sweet?
Accel Partners: Accel Partners was prescient when it bought 15 percent of Facebook, back when the company was valued at $98 million. The Silicon Valley venture capital firm still owns 11.4 percent of Facebook.
Dustin Moskovitz: Moskovitz, Mark Zuckerberg's former roomie at Harvard, has a 7.6 percent ownership share of Facebook, where he was chief technology officer before leaving in 2008.
Yuri Milner: Russian tycoon Milner is already reaping big gains from previous investments in social media stars Zynga and Groupon. Now he's going to add to that pot as various Miner-controlled companies own an estimated 5.4 percent of Facebook.
Eduardo Saverin: For those who fretted after watching "The Social Network" that Saverin had come out with the short end of the stick--he initially received a 30 percent ownership stake--don't worry. Saverin, one of the company co-founders, still comes out nicely, though his precise ownership share in Facebook wasn't available in the Facebook S-1.
Peter Thiel: In 2004, it wasn't clear that Facebook would become the world-beater it subsequently would become. MySpace was dominating the social-networking world back then, but Thiel nonetheless plunked down $500,000 and now holds a 2.5 percent stake in the company. Smart move -- very smart.
Sean Parker: A million dollars isn't cool. You know what's cool? A pre-IPO stake in Facebook for Parker that was estimated at 4 percent. The exact tally wasn't listed in the S-1 but it's likely more than enough to bankroll a sequel to "The Social Network." Heck, with that kind of payday why not buy your own studio?
Microsoft: Steve Ballmer wanted Microsoft to buy Facebook in 2007 but Zuckerberg wasn't interested in giving up the reins. So Microsoft's CEO got the next best thing for his company: a 1.6 percent stake in return for a $240 million investment. It may rank as one of Microsoft's smartest moves in the last decade.
Bono (and Elevation Partners): Wait -- what's Bono doing here? Well, it turns out that the U2 front man is part of the Elevation Partners investment group, which has a reported 1.5 percent stake in Facebook. The return should more than salve the painful reminders of the firm's less stellar investments in Palm and Forbes magazine.
Greylock Partners' Reid Hoffman: Another VC firm that came out a big winner, Greylock Partners was reported to own a 1.5 percent stake in Facebook (though it was below the minimum threshold to be listed in the S-1).