A million dollars isn't cool. You know what's cool? Being as wealthy as a quarter of the households in the United States combined.
Well, it may be more scary than cool. But it's a reality for Mark Zuckerberg, who could gain $24 billion when Facebook reportedly plans to go public at a valuation of $100 billion in the spring of 2012. The 27 year-old's net worth after the IPO, according to The Wall Street Journal, would be roughly equal to the combined net worth of the poorest 24.7 percent of our nation.
While the thought of one entrepreneur acquiring wealth that's roughly equivalent to the wealth held by 27,909,024 American households may be mind-boggling, it's hardly something new.
For one, analysts have been forecasting that Facebook will go public at a $100 billion valuation since January 2011, though back then, Goldman Sachs and a Russian billionaire invested $500 million in the social network at a $50 billion valuation. In addition, initial public stock offerings, often referred to in startup land as "the holy grail," have been enriching founders for decades. It's one of the big reasons people risk it all to start new businesses.
But Zuckerberg's potential windfall may be the largest amount an individual founder has ever netted from an IPO, a testament to his 'take the money and maintain control' attitude. FactSet, a financial data and software firm, crunched the numbers and here's how Zuckerberg's potential take stacks up to some of the more notable IPOs in the last 10 years:
IPO Date: 5/23/02 Hasting's IPO Haul: $47.26 Million* *Based on the market value of shares owned at the IPO offer price.
IPO Date: 5/19/11 Hoffman's IPO Haul: $852.78 Million
IPO Date: 10/28/04 Spielberg's IPO Haul: $225.49 Million* *Jeffrey Katzenberg, one of DreamWorks' co-founders, earned $17.32 Million on the IPO. (Pictured above: From left to right, DreamWorks Animation Co-founders Jeffrey Katzenberg, Steven Spielberg and David Geffen)
IPO Date: 11/04/11 Mason's IPO Haul: $918.69 Million
IPO Date: 8/19/04 Brin and Page's IPO Haul: N/A* *The market value of the roughly 38,000 shares of Class B Common Stock Brin and Page each held at the time of Google's IPO could not be determined, but according to estimates by Forbes, each of Brin and Page's current net worth is $19.8 Billion.
IPO Date: 6/22/07 Schwarzman's IPO Haul: $7.8 Billion