Media Money with Julia Boorstin

Facebook Plans to Raise Millions, and Who Will Profit Most

Tony Avelar | Bloomberg | Getty Images

It’s official, plans to price its shares on Thursday May 17 and to start trading on Friday May 18.

The company filed for a pricing range of $28 to $35, and will issue 337.4 million shares. At the midpoint of the range the company would raise $10.6 billion, and would be valued at $86 billion.

That’s less than the $100 billion that was rumored, which could be in part because the company recently reported that its first quarter net income dropped 12 percent from the year earlier on higher expenses.

But Facebook is still well on its way to the biggest Internet IPO ever, bigger than the record Google sent in 2004. And even at the mid-point, its market cap would be in the same ballpark as Amazon’s and more than half Google’s market cap.

Now that Facebook has announced these numbers it’ll start its roadshow to pitch to investors, starting with a big lunch for Facebook investors in New York Monday.

Click here for the link to its electronic road show

Facebook is selling 180 million shares – the proceeds of which it will keep. Other stockholders will sell 157.4 million shares, and those proceeds will not go to Facebook. Zuckerberg is selling 30.2 million shares, half the number he previously planned to sell, and is exercising options for 60 million shares and offering 30.2 million of those shares as class A stock. This complicated maneuver is in order to “satisfy taxes that he will incur in connection with the option exercise.”

But the IPO will make other shareholders millions and billions.

Other individuals selling shares include Zynga CEO Mark Pincus , Accel partner Jim Breyer, angel investor Peter Thiel, and LinkedIn founder and venture investor Reid Hoffman. Institutional investors are also selling into the IPO: Accel Partners is selling 35.88 million shares, the biggest payday. DST is selling 26.255 million shares, Goldman Sachs is offering 13 million, Elevation, 4.6 million, Greylock 5.998 million, Meritech 5.99 million, Microsoft 6.55 million, and Tiger Global 3.36 million

Who’s not selling? COO Sheryl Sandberg, CFO David Ebersman, Marc Andreessen, Sean Parker, or co-founder Dustin Moskovitz.

Questions?  Comments?