Facebook announced its $5 billion public offering Wednesday afternoon, which is expected to value the whole company at $75 billion to $100 billion.It is the largest internet IPO to date. Of course, the offering will mint some new billionaires and many more millionaires. There is even hope that these new riches will lead to larger tax revenue for California.
So who are the lucky few?
Leading the pack is Facebook co-founder Mark Zuckerberg. According to IPO paperwork Facebook filed Wednesday, he still owns about 28% of the company, and remains its single largest shareholder. If Facebook raises money at a high-end valuation of $100 billion, Mr. Zuckerberg’s stock would be worth $28.4 billion, since he has 533.8 million shares based on a company valuation of $53 per share. Zuckerberg also retains control of the soon to be public company by controlling 57 percent of the voting rights.
Next, Dustin Moskovitz, Zuckerberg’s college roommate and company co-founder, holds 133.8 million shares. His share of the company could be worth $7.6 billion at a potential $100 billion valuation.
Eduardo Saverin, the company’s other co-founder, who provided some of the initial financing and later sued the company for cutting his stake is not mentioned in the filing. He held about 5 percent of the company and has already sold most of that in the secondary market.
The Venture capital firm Accel Partners invested $12.7 million in Facebook in 2005, and remains owners of 11.4% of Facebook’s class B stock prior to the IPO. That will mean over $11 billion at an 100 billion valuation. That is quite the return on a $13 million investment.
Paypal founder Peter Thiel was the earliest investor in Facebook. He invested $500,000 into Facebook back in 2004. He has sold much of his share but still retains 2.5 percent of the company and that could be valued up to $2.5 billion.
The Russian internet group Digital Sky Technologies owns about 5.5 % of the company and stands to gain upwards of $5 billion.
The singer Bono, through his Elevation Partners venture fund has a 1.5 percent stake in the company that could be worth $1.3 billion or more.
Facebook COO Sheryl Sandberg owns 1,899,986 shares (0.1 percent) valued at $88.4 million, 3.5 million unexercised options, and a whopping 39,321,041 restricted stock units that would earn her over $2 billion.
Then there is the case of the graffiti artist, David Choe, who took Facebook stock instead of cash for painting the walls of the social network’s first headquarters . The shares owned by him are expected to be worth upwards of $200 million.
Wikipedia: David Choe (born 1976, Los A
What is NOT being discussed is that any Californian cashing out their Facebook millions — almost all of which is capital gain — will likely flee the state to do so. Otherwise they will pay 10.3% CA capital gains tax — 12.3% if the Governor’s tax increase passes this November (retroactive to the first of 2012!).
Any sane person receiving such a one-time windfall will relocate for a year to another low/no tax state such as Nevada (relocating is quite legal) to take the gain.