Monday, February 6, 2012

Facebook shares for sale!

We all know and love the website facebook, and we also know the CEO of Facebook, Mark Zuckerberg, and Facebook has some great news! Facebook has recently decided to sell some shares of Facebook because they owe taxes in options, which was given to them in 2005 and expires in 2015. They are trying to sell stock shares and earn the money to pay the taxes. They are selling 1.7 billion dollars worth in shares. Here is what facebook has to say,

"We expect that substantially all of the net proceeds Zuckerberg will receive upon such sale will be used to satisfy taxes that he will incur upon his exercise of an outstanding stock option to purchase 120,000,000 shares."

Zuckerberg wants to become one of the richest people in the world with a risk of Facebook become worth as much as 28.4 billion dollars. Facebook shares are considerably cheap for such a popular site. There will be more than 2.5 billion shares and each one will be worth about $39.79 a peice.

Perhaps he does buy all 120 million shares, he will make about $4.7 billion. Zuckermans tax rate is about 35%, said Victor Fleischer, associate professor of law at the University of Colorado. That means his bill would be about $1.7 billion.

So are you going to buy a share or shares of Facebook? Comment your thoughts and opinions! We would love to hear what you had to say!

~ iTech