Facebook plans 4B stock sale

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Dec 19, 2013, 11:52am PST

Facebook plans $4B stock sale; Zuckerberg may donate $1B of the take

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Andrew Harrer

Facebook co-founder Mark Zuckerberg is unloading about 18 million Class B shares, worth about $1 billion, and donating the funds to charity.

Sarah Drake, Contributor

Facebook CEO Mark Zuckerberg and other shareholders are selling nearly 70 million shares of company stock worth nearly $4 billion in a secondary offering on Thursday. The sale raises capital for the company, and is expected to benefit Silicon Valley charities.
As part of the sale of 18 million of Zuckerberg's Class B shares, he will donate about $1 billion to charity, TechCrunch reported. The Silicon Valley Community Foundation is expected to be the recipient of the funds, according to the article.
The Menlo Park-based company did not reveal specifics about how the proceeds from the Class A common stock sale would be used, only to say in an SEC filing:
"Our principal purpose for selling shares in this offering is to obtain additional capital. We intend to use the net proceeds to us from this offering for working capital and other general corporate purposes; however, we do not currently have any specific uses of the net proceeds planned. Additionally, we may use a portion of the proceeds to us for acquisitions of complementary businesses, technologies, or other assets."
Facebook itself will sell about 27 million shares in preparation for its Standard & Poor's 500 Index inclusion on Dec. 20, while nearly 43 million shares will be sold by certain stockholders. The bulk of these 43 million shares will come from two specific people: more than 41 million shares from Zuckerberg and about 2 million shares from venture capitalist and Facebook board member Mark Andreessen, TechCrunch said.
Company: FB

Next Article: 2013: VCs place record bets on future of drones, robots