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Facebook IPO: Zuckerberg, Others Set To Get Rich Off Of Social Network's Debut (PHOTOS)

Huffington Post  |  By Posted: Updated: 05/18/2012 10:42 am

Facebook

Who's getting rich off Facebook?

Everyday investors are clamoring to buy a piece of the company, valued at $100 billion, when it debuts on the NASDAQ on Friday with the ticker symbol FB. Indeed so many orders have been placed that brokerage firms have closed the window for more, according to Reuters.

Over 420 million shares are expected to go up for sale priced somewhere between $34 and $38 per share.

However, the big money has already been staked out. Facebook's founders and early investors own huge amounts of stock.

When the company goes public, some will hold on to their stock; others will walk away with cash after selling shares at the IPO. Founder Mark Zuckerberg will sell some and hold some.

Here are some of the major players:

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  • Mark Zuckerberg

    Zuckerberg will remain the largest single shareholder of his brainchild even after it goes public. If Facebook is valued at its current estimate of $100 billion, his shares will make him worth around $28 billion. The 30.2 million of those shares he's offering for sale at the IPO will <a href="http://www.huffingtonpost.com/2012/05/15/facebook-ipo-who-is-selli_n_1517544.html" target="_hplink">translate into about $1.15 billion</a> in cash if the company's price per share is $38.

  • Peter Thiel

    The PayPal co-founder and Facebook's first angel investor has an ownership stake of <a href="http://www.huffingtonpost.com/2012/02/01/facebook-investors-ipo_n_1248368.html" target="_hplink">2.5 percent</a>. Thiel plans to sell <a href="http://sec.gov/Archives/edgar/data/1326801/000119312512235588/d287954ds1a.htm" target="_hplink">16.8 million of his shares </a>during the IPO, which means he might pocket over $600 million in cash if the stock price ends up anywhere near current estimates.

  • Dustin Moskowitz

    When Facebook starts trading publicly, the 7.6 percent ownership stake co-founder Moskowitz holds in the company is<a href="http://www.huffingtonpost.com/2012/02/01/facebook-investors-ipo_n_1248368.html" target="_hplink"> expected to make him $7.6 billion</a> in liquid assets.

  • Sean Parker

    The co-founder of Napster has a 4 percent ownership stake in Facebook, <a href="http://www.fastcompany.com/1812984/facebook-ipo-parker-s1-founder" target="_hplink">according to Fast Company</a>.

  • Sheryl Sandberg

    Multiplying the<a href="http://sec.gov/Archives/edgar/data/1326801/000119312512235588/d287954ds1a.htm" target="_hplink"> 2 million shares of stock</a> the Facebook Chief Operating Officer holds in the company by the upper limit of the estimated $38 price per share equates to $76 million, the approximate value of her liquid assets when Facebook goes public.

  • Marc Andreessen

    Facebook board member and Netscape co-founder Marc Andreessen owns about 3.6 million shares, <a href="http://www.sec.gov/Archives/edgar/data/1326801/000119312512034517/d287954ds1.htm#toc" target="_hplink">according to public filings. </a>That means he owns about 0.2 percent of Facebook or an estimated $200 million worth of stock.

  • Morgan Stanley

    The Facebook IPO's high demand likely allowed it to haggle a lower than average fee from the banks selected to take the company public. As its top underwriter, Morgan Stanley is expected to charge a fee of about 1 percent of the total public offerings, <a href="http://uk.reuters.com/article/2012/01/27/uk-facebook-ipoview-idUKTRE80Q21320120127" target="_hplink">according to Reuters.</a> At current estimates that could total <a href="http://www.huffingtonpost.com/2012/05/16/facebook-ipo-size_n_1520441.html" target="_hplink">more than $18 billion</a>. That means the investment bank will receive $180 million.

  • David Choe

    The graffiti artist painted Facebook's headquarters in 2005 and decided to <a href="http://www.huffingtonpost.com/2012/02/02/david-choe-artist-facebook-stock_n_1251021.html" target="_hplink">take stock instead of payment.</a> Choe will likely become a millionaire when the company goes public. The estimated value of his shares is $200 million.

  • Goldman Sachs

    The investment bank will make money not only as one of the underwriters of the <a href="http://www.huffingtonpost.com/2012/05/15/facebook-ipo-who-is-selli_n_1517544.html" target="_hplink">Facebook IPO, but also through</a> the sale of its 27 million company shares -- worth about $1 billion if the stock value is $38 per share.

  • Eduardo Saverin

    One of the original founders of Facebook, Saverin would have become a billionaire at the IPO if he wasn't already one. The Brazilian internet entrepreneur owns about <a href="http://www.huffingtonpost.com/2012/05/16/eduardo-saverin-us-citizenship_n_1520778.html" target="_hplink">4 percent of Facebook.</a>

  • Mike Schroepfer

    The company's vice president of engineering owns about 2.1 million shares, <a href="http://www.sec.gov/Archives/edgar/data/1326801/000119312512034517/d287954ds1.htm#toc" target="_hplink">according to public filings.</a> At an estimated $38 share price, his shares will be worth around $80 million.

  • David Ebersman

    The Facebook Chief Financial Officer, who joined the company in 2009, now owns about 2.2 million shares, <a href="http://www.sec.gov/Archives/edgar/data/1326801/000119312512034517/d287954ds1.htm#toc" target="_hplink">according to public filings. </a>His liquid assets will be worth an estimated $84 million after the IPO.

  • James Breyer With Accel Partners

    Accel Partners and principal partner James Breyer own about 11 percent of Facebook and could take in $1.86 billion from the <a href="http://www.huffingtonpost.com/2012/05/15/facebook-ipo-who-is-selli_n_1517544.html" target="_hplink">sale of their 49 million shares at the IPO </a>, provided that the stock price ends up at $38 per share.

  • Digital Sky Technologies Global

    The London-based investment firm owns 5.4 percent of Facebook. DST Global could take away nearly $1.7 billion of that amount in cash from the sale of its <a href="http://sec.gov/Archives/edgar/data/1326801/000119312512235588/d287954ds1a.htm" target="_hplink">45.7 million shares </a>at the IPO. photo by <a href="http://dst-global.com/" target="_hplink">DST Global</a>

  • Meritech Capital

    The venture capital firm will take home millions from its planned sale of its <a href="http://sec.gov/Archives/edgar/data/1326801/000119312512235588/d287954ds1a.htm" target="_hplink">7 million shares</a> of Facebook stock during the IPO.

  • Elevation Partners

    Bono, the lead singer of U2, is also the co-founder and managing director of Elevation Partners. Out of their <a href="http://whoownsfacebook.com/" target="_hplink">1.5 percent stake of Facebook</a>, the private equity firm will offer <a href="http://sec.gov/Archives/edgar/data/1326801/000119312512235588/d287954ds1a.htm" target="_hplink">4.6 million of its shares</a> during the IPO. The offering is slated to make them $176 million if the stock value is $38 per share.

  • Mark Pincus

    Zynga Inc. CEO Mark Pincus reportedly owns about 0.5 percent of Facebook stock, <a href="http://whoownsfacebook.com/" target="_hplink">according to whoownsfacebook.com,</a> but is expected to soon translate some of that stake <a href="http://www.huffingtonpost.com/2012/05/15/facebook-ipo-who-is-selli_n_1517544.html" target="_hplink">into cash. Pincus</a> is offering 1 million shares for sale at the IPO.

  • T. Rowe Price

    The investment <a href="http://www.sec.gov/Archives/edgar/data/1326801/000119312512034517/d287954ds1.htm#toc287954_15" target="_hplink">firm owns 1.2 million shares,</a> or about $46 million dollars if Facebook shares sell at their upper estimated limit of $38 per share at the IPO.

  • Mail.ru

    The Russian internet company will reportedly offer 19.6 million shares for sale at the IPO, which <a href="http://www.huffingtonpost.com/2012/05/15/facebook-ipo-who-is-selli_n_1517544.html" target="_hplink">means it stands to take home $745 million </a>if the stock price is $38.

  • Reid Hoffman

    The LinkedIn co-founder will reportedly sell <a href="http://sec.gov/Archives/edgar/data/1326801/000119312512235588/d287954ds1a.htm" target="_hplink">942,724 shares of his stock</a> at the IPO. That means he will take home about $36 million in cash, not including the value of the over 3 million shares he will still have left in the company.

  • Microsoft Corp.

    Microsoft is expected to walk away with more than $200 million from the <a href="http://sec.gov/Archives/edgar/data/1326801/000119312512235588/d287954ds1a.htm" target="_hplink">6.6 million shares</a> it plans to sell. The company's pre-IPO stake is <a href="http://whoownsfacebook.com/" target="_hplink">reportedly 1.6 percent </a>or at current valuation, $1.6 billion.

  • Tiger Global Management

    The investment firm is offering <a href="http://sec.gov/Archives/edgar/data/1326801/000119312512235588/d287954ds1a.htm" target="_hplink">23.4 million shares </a>for sale at the IPO, which equates to $874 million for a $38 share price.

  • Greylock Partners

    The Silicon Valley venture capital firm is expected to make well over $200 million from<a href="http://www.huffingtonpost.com/2012/05/15/facebook-ipo-who-is-selli_n_1517544.html" target="_hplink"> the sale of its 7.6 million</a> shares of Facebook during the IPO.

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11:15 AM on 08/05/2012
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10:02 PM on 05/21/2012
This stock is very overvalued at an extreamly high P/E Ratio for an unproven company. The stock is about 34 and I predict it will sell for 17 or so a year from now. The only one's who made money on this were the 1%ers who paid lower than syndicated issue price and already dumped this low quality stock. Many of the retail investors have been very missled by all of the hype and media road show. This whole thing reminds me of the internet bubble of the late 90's. I used to ask many of these yuppies with their MBA"s if they could explain to me what a P/E Ratio or other measures of a companies value was and they would look at me like I was from Mars.The same thing is hapenning now with the social media stocks.Although I must say Apple with a P/E Ratio of 13 and Google at 14 times look like great values. They both have no long term debt and about 22% net cash to total market capitalization.
HUFFPOST SUPER USER
RealPolotik
Steal Yo Face.
08:38 PM on 05/18/2012
I deleted FB when I heard they were having an IPO. I could not sleep at night knowing I was helping Zuckerburg get rich.
12:30 PM on 05/18/2012
Zuckerberg should build his own city and call it SUCKERBERG!
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HUFFPOST SUPER USER
jaggy123
The attraction is the distraction!
01:53 AM on 05/18/2012
Just securing our fortunes before the FB bubble bursts-Suckers!
HUFFPOST SUPER USER
albertgraphics
06:44 PM on 05/17/2012
Facethis will be the biggest flop.
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HUFFPOST SUPER USER
Manhattanite
04:06 PM on 05/17/2012
Dot.com craze anyone? Multimillionaire one day, penniless the next? How can anyone believe that Facebook is worth $100 billion?
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06:51 PM on 05/17/2012
They felt that way about Amazon.com also and hes laughing all the way too the bank.
HUFFPOST SUPER USER
RealPolotik
Steal Yo Face.
08:36 PM on 05/18/2012
I think FB will be a vastly different narrative when it plays out.
03:48 PM on 05/17/2012
Only 420 shares up for sale? What's the writer smoking something?
03:42 PM on 05/17/2012
wow, you mean Zuckerberg is gonna get rich off of this! who would have thought?! great reporting, really.
HUFFPOST SUPER USER
leorangerie
02:42 PM on 05/17/2012
It's cool and nuts at the same time.
12:28 PM on 05/17/2012
Your all gonna loose . FB does not Protect your accounts . And is a Site that can be duplicated at anyone time ! Your going to fall in to a plot that sounds to good to be true and you know as well as any buddy you work hard and get your kids educated better then you are yourself ! Watch with Greece and then Spain and Turkey not signing the Euro this will go no were !
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02:56 PM on 05/17/2012
Many will lose while they make a very few very rich, its how the rich get richer
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06:47 PM on 05/17/2012
This guy and his staff are libs funny how there already moving there money overseas.
05:34 PM on 05/17/2012
Thank you, oh wise one!