A lot of stories about the Facebook numbers are reporting that Facebook will raise $10.6 billion when it sells its stock in the next couple of weeks. However, it’s important to note that only about half of that will actually go into the company’s coffers. The rest is insiders cashing out shares.
The company said it is selling 337.4 million shares in its updated S-1. However, only 180 million shares are being sold by Facebook itself. The other 157.4 million shares are being sold by insiders.
That means that if the shares go out at the low end of the $28-$35 price range, Facebook would pocket about $5 billion. The rest would go to insiders: venture firms and executives.
Here’s the breakdown:
- Mark Zuckerberg: 71 million shares
- Accel Partners: 38 million shares
- 12 Facebook executives: 117 million shares (including Zuckerberg’s shares)
- DST Global: 26.3 million shares
- Goldman Sachs investment fund: 13.2 million shares.
- Elevation Partners: 4.6 million
- Greylock Partners: 11.3 million
- Marc Pincus: 1 million
- Meritech Capital Partners: 6.99 million
- Microsoft: 6.56 million
- Reid Hoffman: 942,784
- Tiger Global Management: 3.4 million
Of course, $5 billion (or more) is still a big chunk of change for Facebook. It’ll be interesting to see just what they do with that cash. Buy startups? Invest in infrastructure? Acquire China?