The Ipo Pricing Of Facebook Is Droping

With the revelation from Facebook on Thursday about where the company plans to price

its public offering between $28 and $35 a share comes the question: How much does that make founder and CEO Mark Zuckerberg worth?

Forbes pinned Zuckerbergs net worth at $17.5 billion in our 2012 list of the Worlds Billionaires, released in March. Assuming that Facebook prices is at the top of the projected range, Zuckerberg will be worth a couple billion less than that about $15.5 billion.

Ive been reading the fine print in the footnotes of the filing and the 503 million shares of Facebook that Zuckerberg will own after the offering includes 120 million shares of stock issuable upon exercise of an option. In other words, he doesnt own all 503 million shares yet. The filing says Zuckerberg plans to exercise part of the option and purchase 60 million shares. Based on those numbers, at the offering and including the 60 million option exercise, Zuckerberg will own 443 million shares. At $35 a share, that puts his net worth at $15.5 billion.

As I pointed out earlier Thursday, Zuckerberg will get $1.06 billion (before taxes) from selling 30.2 million shares. But I dont think its correct to add that $1.06 billion to his net worth, because as the filing with the SEC states, We expect that the substantial majority of the net proceeds Mr. Zuckerberg will receive upon such sale will be used to satisfy taxes that he will incur in connection with the option exercise.

To be sure, the stock could easily pop up after the offering and push Zuckerbergs net worth back up closer to Forbes earlier $17.5 billion estimate. Stay tuned for that.

Meanwhile, in an unusual deal, Zuckerberg has been granted the voting rights to some of the shares that belong to Accel Partners, Founders Fund and investor DST that will, when he exercises the full option for 120 million shares, give him 58.8% of the companys voting rights. Rather unheard of, right?

By the way, Facebook is good SEO for many companies, such as rotary kiln company, food company, and so on.

by: jocelyn

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