We need your help now
Support from readers like you keeps The Journal open.
You are visiting us because we have something you value. Independent, unbiased news that tells the truth. Advertising revenue goes some way to support our mission, but this year it has not been enough.
If you've seen value in our reporting, please contribute what you can, so we can continue to produce accurate and meaningful journalism. For everyone who needs it.
Sign in. It’s quick, free and it’s up to you.
An account is an optional way to support the work we do. Find out more.
By continuing, you are indicating that you accept our Terms of Service and Privacy Policy.
FACEBOOK HAS FORMALLY raised the expected price of its shares ahead of its public flotation later this year – to a level which would value the company at above the $100 billion barrier.
In an apparent response to high investor demand, the company has filed new documents with the Securities and Exchange Commission in the United States revising its earlier paperwork for its Initial Public Offering.
Having previous priced its shares are somewhere between $28 and $35 per share, the company’s shares are now priced at somewhere between $34 and $38.
Assuming the shares are ultimately priced at halfway between these two levels, at $36, would value the total number of shares being sold off at $12,146,952,672.
The company itself would retain a little over half – $6.48 billion – while existing shareholders, most prominently the company’s founder and CEO Mark Zuckerberg, keeping the rest.
Despite the public flotation of the company, Zuckerberg faces no threat to his ultimate control of the company: because of his holding of ‘Class B’ shares, which carry ten times more voting weight than the regular ‘Class A’ shares being sold, he will still hold 57.3 per cent of its voting rights.
Zuckerberg, who turned 28 yesterday, is to sell 30.2 million shares himself; assuming a sale price of $36, he would net a cash payment of $1.087 billion, while the remainder of his stock would be worth $18.3 billion.
His status makes him one of the world’s youngest self-made billionaires, but not the youngest: his former Harvard roommate Dustin Moskovitz, who took a part-stake in the company, is the youngest.
To embed this post, copy the code below on your site
I can’t wait to see this company go down
Why?
one word: Bubble
Begrudgery.
get out now..a bubble is a bubble is a bubble
Facebook worth that amount of money? Bahaha
People should invest in something that is real.. gold ! gold ! gold!
bit of the oul Eircom flotation mainia going on .
Until facebook makes itself necessary (which it seems to be making progress with), that value won’t hold.
I got rid of mine due to being on it too much and admittedly,only a few days later I already feel like I’m missing out on some conversation/News. I don’t plan on going back though. And if I do it’ll be one of those boring accounts with no activity or info on it. Just so I can be found.
Ponzi.
You all watch, I bet by Christmas Zuckerburg will have off loaded most of the company, as Facebook is a dying Social Networking site due main to Personal informational issues.
Any wiseman wouldnt pass this chance…i know im investing
Make whatever money you can and get out after 6 months max.
Good luck to you Mensah, but this is one humongous bubble that is going to burst very soon and leave a lot of people very hurt.
Is Facebook worth more money than I could ever hope to see in my lifetime? Yes. Is it worth the price tag being put on it? No.
Now where did I put that pin, think someone need’s to burst that bubble. Its the .COM bubble all over again but this time its all on one player.
Facebook is definitely not worth that amount of money, but whatever it is worth Zuckerberg knows what he is doing. Sell it while it’s hot is the idea.
Knowing up and downs of the social networking sites it is good idea to get the money while it has that big amount of users. You don’t know how much it will be popular in a year or two…
have your say