With Facebook pricing its initial public offering at $38 a share this afternoon, doing the math on the company has become much clearer. No more need to guess where in the range Facebook would sell for.
At $38 a share, the social network is now worth more than the vaunted $100 billion mark that was bandied about in the months leading up to the IPO. The offering price implies a a market capitalization of $104 billion, making the soon-to-be-public company not only one of the biggest in Silicon Valley, but one of the biggest in the world.
For some of Facebook’s founders, investors and early executives, it looks like time to pat one another on the backs and check their bank accounts.
Read the rest after the jump. Article off Forbes.com.
Based on financial data from the company’s latest filing with the Securities and Exchange Commission, seven individuals–all of whom are already billionaires by Forbes’ calculations–will own stakes in Facebook collectively totaling more than $25 billion. For perspective, that is equal to about 13% of the California gross state product in 2010.
The bulk of that figure comes from Facebook CEO Mark Zuckerberg, whose 443 million shares–after he sells off 30.2 million shares in the IPO–are worth $16.9 billion at $38 a share. This figure does not count Zuckerberg’s 60 million unexercised options. Zuckerberg, whose net worth was Forbes estimated at $17.5 billion on the World’s Billionaires List in March, may easily surpass his own high water mark if Facebook’s shares pop on Friday.
Another company cofounder, Dustin Moskovitz, will likely see his net worth rise on Facebook’s first day of trading. Zuckerberg’s college buddy will own more than 126 million shares, assuming that he sells 7.5 million shares if the overallotment is exercised by the IPO’s underwriters. At $38 a share, Moskovitz’s stake will be worth $4.8 billion, higher than Forbes’ net worth calculation of $3.5 billion in March. Not bad for someone who celebrates his 28th birthday on Tuesday.
Sean Parker, Napster man and early Facebook president, has the third highest stake as listed on the SEC filing. Assuming Parker sells 10 million shares if the overallotment is exercised, he will own nearly 60 million shares in the company. At the IPO price, his holding is worth $2.1 billion and he will pocket $323 million after taxes from the sale. Parker no longer retains an official position with Facebook and has allowed for Zuckerberg to vote his shares in company decisions.
Investors Peter Thiel and Jim Breyer will be selling part of their personal Facebook stakes in the IPO as well. Thiel’s stake in the company, which is held in holding companies named after Lord Of The Rings references, will amount to nearly 19 million shares after he sells another 19 million during the offering. Excluding shares held by his venture capital firm, Founders Fund, Thiel’s total stock in the company will be worth $721 million, in addition to an after-tax $613 million in cash gained from selling.
Breyer is selling about 3.3 million shares that he personally owns, and will hold on to 8.4 million shares after the IPO is complete. These share do not include those held by his venture capital firm, Accel Partners. After pocketing about $106 million from the sale, he’ll still have a personal holding equal to $320 million at the IPO price.
Two early company angels, now billionaires as well, are also selling. Zynga CEO Mark Pincus invested $40,000 around late 2004, as did LinkedIn CEO Reid Hoffman, and each will be selling more than 1 million shares on Friday. Post-offering, Pincus’ remaining stake will be worth $137 million (at $38 a share). He will take home nearly $37 million after-tax from selling shares. Hoffman’s remaining 3 million shares will be worth $115 million and he’ll reap about $35 million (after taxes) from selling.
