August 30, 2014
SAN FRANCISCO (AP) - Facebook has priced a secondary offering of its stock at $55.05 a share in a deal that will generate a $2.3 billion windfall for CEO Mark Zuckerberg.
The terms announced Friday are just slightly below the $55.12 closing price of Facebook's stock Friday. The stock has climbed well above the $38 price set in Facebook's initial public offering 19 months ago.
This time around a total of 70 million Facebook shares are being sold.
Of those, Zuckerberg is selling more than 41 million shares, primarily to cover the taxes he has to pay as a result of exercising his option to buy 60 million Facebook shares that carry more voting power. He will remain Facebook's controlling stockholder after the sale.
Facebook is selling 27 million shares and company board member Marc Andreessen is selling 1.6 million shares.
Copyright 2014 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.