Who Are the Under-the-Radar Facebook Investors?
It's no secret that Mark Zuckerberg will become an even richer man when Facebook shares begin trading. And you don't have to look too hard to see his top lieutenants will do quite well, also.
But the Facebook gravy train is a long one — and some of the people who will benefit from the initial public offeringare ones you might not expect.
David Choe is certainly the most unlikely. A graffiti artist who spray-painted the first Facebook office in 2005, he opted to be paid in stock instead of taking $60,000 in cash. An odd decision at the time, given that the company had only recently incorporated and was then limited to college and high-school students. But it's one that will pay off soon.
That stock, according to Choe (who spoke on “The Howard Stern Show” in February), could be worth anywhere from $200 million to $500 million today. (He also added that he has since sold some of that stock on the private market, so it's uncertain how much he still has.) Still, it's not a bad payday for someone who convinced Zuckerberg to help him with the painting.
"I believed in Sean [Parker, Facebook's founding president]," said Choe. "I was like, this kid knows something and I'm going to bet on him."
Zuckerberg's father will also reap the benefits of the IPO. An early investor in the company, Edward Zuckerberg (a dentist known to his patients as "Painless Dr. Z") was offered 2 million shares of Class B stock.
The option to purchase those shares expired without him exercising it — but the company's board of directors later issued those 2 million shares to Glate LLC, a company controlled by Edward Zuckerberg, ruling that the original termination did not reflect the intent of original agreement. (Son Mark abstained from that vote on the board.)
Zuckerberg's sister will also likely see her fortunes rise. Randi Zuckerberg worked at Facebook through August 2011. While the company's S-1 filing with the Securities and Exchange Commission does not specify how many options she controls, the document notes that she was "eligible for equity awards on the same general terms and conditions as applicable to other employees in similar positions."
Even a few enemies will profit from the IPO, though they may be more focused on the billions they could have made. Cameron and Tyler Winklevoss, whose legal battle and grievances with Zuckerberg were depicted in the film “The Social Network,” stand to gain up to $300 million when shares go on sale.
A settlement with the twins in 2008 left them with 1.2 million shares of the company, though, as with other shareholders, it's uncertain how much they still own.
Cameron Winklevoss has talked up the IPO, saying on Twitter, "We r excited 4the #FacebookIPO + wish the company + all involved the very best,an amazing accomplishment!" [sic]
What would a major media event be without celebrities? U2 front man Bono, who just finished a three-month tour that grossed $736 million, could make even more money from his investment in Facebook, made through his Elevation Partners.
Facebook's S-1 doesn't spell out how much Elevation has put into the company, but Reuters reports the company made at least two separate investments: $120 million in June 2010 (when Facebook was valued at $23 billion) and $90 million the previous November (when the company was valued at $9 billion).
Finally, while it's no news that a company's board of directors holds its stock, some of the names that advise Facebook are worthy of mention.
The Washington Post Co. Chairman and Chief Executive Don Graham holds 1 million restricted stock options, while former White House Chief of Staff Erskine Bowles and Netflixfounder Reed Hastings each has 20,000 restricted options.
LinkedIn founder Reid Hoffman, who invested in Facebook in its first fundraising round for a reported 0.5 percent stake could see his $40,000 turn into $425 million. And Zynga founder Mark Pincus reportedly invested a similar amount.
Pincus, of course, has already gotten rich off Facebook once. Zynga raised $1.5 billion in its IPO earlier this year, largely on the strength of its Facebook games.