Q: Who owns the 85 percent of shares not sold in the IPO?
A: Top executives and directors collectively own nearly half. Mark Zuckerberg, the founder and CEO, holds 504 million shares — about one-fifth of the shares that weren't sold in the IPO. At the IPO price, his unsold shares are worth $19 billion. Zuckerberg also controls special shares that give him 56 percent of voting rights on shareholder proposals.
Q: Did Zuckerberg sell in the IPO?
Yes, he sold 30 million shares, pocketing $1.15 billion. He said he sold to help pay taxes.
Q: How many shares do top executives and directors own?
A: Not counting Zuckerberg, they own 578 million shares, or nearly a quarter of the shares not sold in the IPO. David Ebersman, the chief financial officer, owns 2.4 million shares worth $91 million at the IPO price. Sheryl Sandberg, the chief operating officer, owns 1.9 million worth $72 million. Neither sold stock in the IPO. Among top executives, only Zuckerberg sold.
Q: What about other employees?
A: It's unclear in Facebook's IPO document how much of the company is owned by employees. The document disclosed only shares held by top executives. But it did list "restricted stock units" — equivalent to 403 million shares — given to staffers. If all the units are turned into stock, they'd be worth $15 billion at the IPO price. The company also has given staffers 117 million options convertible to shares. They're worth $4.5 billion at the IPO price. The options, plus the restricted units, represent 19 percent of shares. Most of the stock underlying the restricted units can't be sold for six months.
Q: Are there other selling restrictions for pre-IPO owners?
A: Yes, so-called "lock-up" periods, when old owners can't sell range from a month to a year. Mail.ru Group, a Russian internet company that sold $745 million worth of shares in the IPO, still owns 35 million shares. Those are worth $1.3 billion at the IPO price. The IPO document isn't clear on the precise amount. But the company can't sell those shares for a year. Maili.ru originally invested in Facebook in 2009.
Q: Are there other big early investors with unsold stock?
A: James Breyer and Accel Partners, a venture capital fund where he's a partner, invested in Facebook in 2005. They still hold 152 million shares worth $5.8 billion. In the IPO, they sold 49 million shares worth $1.9 billion.
Q: Who are the other early investors who sold?
A: Peter Thiel, the venture capitalist and a Facebook director, sold 17 million shares for $646 million. He had invested $500,000 in the company in 2004. That means he made $645.5 million in profit from his sale, before taxes and fees. He still owns about 28 million shares worth $1.1 billion. Another is DST Global Ltd., a London firm. DST and its affiliates sold 46 million shares, pocketing $1.7 billion. One of the earliest investors, Reid Hoffman, a co-founder of LinkedIn Corp. who invested in Facebook in 2004, sold stock worth $36 million. Other sellers include Goldman Sachs. It got $1.1 billion for its shares.
Q: Where does Facebook IPO rank among IPOs?
A: In terms of money raised, it was the third-biggest U.S. IPO in history, edging out AT&T Wireless. That company's IPO in 2000 raised $10.6 billion according to Renaissance Capital, an IPO advisory firm. The biggest IPO was Visa Inc. in 2008. It raised $17.8 billion.
AP Business Writer Barbara Ortutay in New York contributed to this report.
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