Zuckerberg to Sell Millions of Shares of Facebook Stock

Zuckerberg to sell millions of Facebook shares, donate to charity

Facebook founder and CEO Mark Zuckerberg is selling more than 41 million shares of the company's stock, and he also plans on donating another 18 million shares to charity. Along with praise for his philanthropic activities, Zuckerberg is netting about $1 billion from the sale.

People who are looking to pursue a career in business might be interested in Facebook's latest move. The sale frees a large amount of liquid cash that the social media giant plans to use for future acquisitions.

How the profits will be divided
Zuckerberg announced early on Dec. 19 that he and his company would exercise an option to buy 60 million supervoting Class B shares in Facebook. Another 70 million shares will also be made available for public purchase. 41.35 million shares will come from Zuckerberg himself, and those shares are currently valued at $3.9 billion, according to records from the Securities and Exchange Commission. Some of the proceeds will be used to pay off the taxes he will accrue from the sale, leaving him with a hefty $3.3 billion in profit.

Despite having to pay more than half a billion dollars in taxes, Zuckerberg has promised to donate 18 million shares - valued at almost $1 billion - to the Silicon Valley Community Foundation. The charity, which is based near Facebook's headquarters in Mountain View, Calif., is a nonprofit organization that helps large corporations facilitate donations and investments in philanthropic endeavors. In December 2012, Zuckerberg also donated 18 million shares to the Silicon Valley Community Foundation, which were estimated at that time to be worth $500 million.

Boosting U.S. economy
People interested in business news might see a slew of new Facebook-based tech influencing the market, although Facebook hasn't revealed any plans for the extra cash coming in from the sale. Analysts believe that the company will attempt to acquire new tech products and other companies with the fresh influx of money. Business owners who use the social media network to bring in sales hope that the Facebook's move, along with the Federal Reserve's decision to limit its economic stimulus, will prompt companies to broaden their spending budgets to create more jobs.

This article is sponsored by Western Governors University, a nonprofit, accredited, online university. WGU offers online bachelor degree programs in business and online MBA programs. To find out more, please visit www.wgu.edu/wisecareers_business.

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