This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

[video] Facebook CEO Zuckerberg Sells Shares, Stock Down Over 4%

The video this transcript is based on appeared on December 19.

NEW YORK ( TheStreet) -- Facebook CEO and founder Mark Zuckerberg is selling 41.4 million shares of Facebook stock that are worth about $2.3 billion to pay a tax bill.


Debra Borchardt:
Good morning and welcome to Wall and Broad.

Facebook (FB) shares were down over 4% in early trading this morning after it was announced that founder and CEO Mark Zuckerberg would sell 41.4 million shares that are worth about $2.3 billion.  Those losses have been trimmed and now its only down 2%. The market reaction has been negative because at first look, it is typically negative when a CEO sells stock in his own company. In this case, Mr. Zuckerberg is using the money to pay a tax bill related to his option to buy 60 million Class B shares. As a result, his voting power is reduced from 58.8 % to 56.1%.

It's a busy morning for Facebook as the company also announced a secondary offering of 70 million Class A shares. 27 million plus shares will come from Facebook and the remainder made up with Zuckerberg's chunk and also board member Marc Andreessen who is selling 1.65 billion Class A shares. The shares are going to be offered primarily to index funds now that Facebook will be a part of the S&P 500 as of the close of trading on December 20.

Mr. Zuckerberg is also feeling charitable this month and in the spirit of giving he will gift 18 million shares to the Silicon Valley Community Foundation. That donation works out to be about $1 billion.  Shareholders don't have to worry too much, even though the stock is down slightly today, its moved up over 100% for the past year. And that gets a big thumbs up and a like button.

I'm Debra Borchardt for TheStreet. Good luck trading.

Written by Debra Borchardt in New York.

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
AAPL $113.29 0.00%
FB $91.01 0.00%
GOOG $630.38 0.00%
TSLA $248.48 0.00%
YHOO $33.14 0.00%


Chart of I:DJI
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 +1.21 0.06%
NASDAQ 4,828.3250 +15.6170 0.32%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs