Facebook Prepares for Stock Market Debut
CNNMoney.com reports that Facebook’s CEO and founder is set to begin the process of presenting the company and the business to potential investors ahead of a tentative May 18 stock market launch. Following the private introductions, Facebook’s IPO registration documents will be reworked with a price range for its shares.
The CNNMoney report said:
“Facebook said in a filing last month that it currently values its shares at $30.89 each, as of January 31 -- up from $29.73 a month earlier. Anticipating heavy demand, analysts expect the shares to command a premium when Facebook's underwriters (including lead banker Morgan Stanley) sell them to their clients during Facebook's IPO.”
The same site says that Zuckerberg could be a “paper billionaire,” owning more than three-quarters of the social media company that attracted 12% of the world’s population. His stake could amount to $16 billion dollars, depending on Facebook’s valuation when it goes public; however, Zuckerberg will have a substantial federal and state tax bill to pay, estimated to be as much as $2 billion dollars. It is predicted that he will likely sell off enough Facebook shares to cover the tab.
Zuckerberg salary pushed half a million dollars in 2011, not including bonuses and various perks.
"His regular paycheck is about to be slashed, though. As of next year, Zuckerberg will make just $1 a year. He didn't receive any more stock in 2011, and likely won't get any additional stock-based compensation after the company goes public. Facebook said in its filing that the company's directors believe Zuckerberg's current stock "sufficiently aligns his interests with those of our stockholders."
Reach Reporter Leslie Velez here.