Tuesday, October 17, 2017

Mark Zuckerberg to sell up to $12bn worth of Facebook shares

CEO said however it plans to sell a minimum of 35 million shares worth $6bn, with 75 million shares being the highest estimate.

One of the world’s richest man is planning to sell up to $12.7bn worth of shares, but not to make himself richer.

Facebook’s (Nasdaq: FB) CEO Mark Zuckerberg has announced – unsurprisingly through a Facebook post – that he plans to sell up to 75 million shares of the company in the next 18 months to help fund the Chan Zuckerberg initiative.

With the company’s shares trading at around $170/$173 for the last month, this could mean Zuckerberg will be looking to get back $12.7bn to help finance his and his wife’s philanthropic project around education, science and advocacy works.

Zuckerberg set, however, a minimum stock amount he would be willing to divest, and this stands at 35 million Facebook shares. Even with 40 million less shares, this would amount to nearly an incredible $6bn.

He said in his post:” Over the past year and a half, Facebook’s business has performed well and the value of our stock has grown to the point that I can fully fund our philanthropy and retain voting control of Facebook for 20 years or more. As a result, I’ve asked our board to withdraw the proposal to reclassify our stock — and the board has agreed.

“I want to be clear: this doesn’t change Priscilla and my plans to give away 99% of our Facebook shares during our lives. In fact, we now plan to accelerate our work and sell more of those shares sooner. I anticipate selling 35-75 million Facebook shares in the next 18 months to fund our work in education, science, and advocacy.

“We have a lot of work ahead at Facebook to help build community and bring the world closer together. We also have a lot of work at the Chan Zuckerberg Initiative working with amazing scientists, educators, and doctors around the world who need support today, not decades from now. This path offers a way to do all of this, and I’m looking forward to making more progress together.”