Thursday, February 2, 2012

Zuckerberg Finally Files Facebook for IPO

Facebook finally files for an IPO aimed to raise $5B in the offering which is expected to instantly create over 1000 new millionaires. Zuckerberg's share of the company is expected to be worth approximately $17B based on the fact that the shares will be worth about $29 each.

Mark Zuckerberg started the company in 2004 out of his Harvard dorm room. The site now has over 700 million users which is astonishing.

Zuckerberg currently earns $500,000 annually as CEO of the company but this amount will drop to $1 in 2013 as the company goes public. It is common for CEOs of tech firms to take only 1$ as a salary and it is very smart as they pay less income tax and their shares can be sold for capital gains tax which is at a much lower rate.

The company plans to go IPO in May with Goldman Sachs being the primary underwriter in the deal. Secondary  underwriters include Citigroup, JP Morgan, and others.

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