Facebook has grown into the world’s dominant social network with 900 million users. All eyes seem to be on IPO debut on Friday. The Wall Street Journal created a Zuckerberg Wealth-O-Meter, and it was a big party, or was it?
The initial public offering was $38 a share and the closing at the market remained $38 a share.
Facebook backers include:
Facebook co-founder Moskovitz which puts 133.7mil shares at the initial IPO offering. Elevation Partners, which put about 4.62 million shares worth $175.6 million at the $38 opening price on the block for the IPO. It got 13 percent stake in the social network. Sean Parker of Napster with 69.7 shares slid toward break even after IPO ($38).
Mark Pincus (Zynga), with 5.3 mil shares is trading below its IPO prices. LinkedIn co-founder Reid Hoffman, shares fell 5.7 percent to $99.02.
Microsoft recoups its original investment in Facebook by selling $249 million worth of stock in the company while holding on to 26.2 million shares, as they combine forces to challenge Google.
Facebook’s second biggest stockholder, venture capitalist James Breyer of Accel Partners saw its net worth soar with the IPO. Milner’s investment firm DST Global sells 131.3 million shares, while Thiel, who is on the Facebook board, sells 44.7 million shares.
For all the high expectations surrounding Facebook, the company faces challenges maintaining its growth momentum. Market participants are still optimistic about Facebook going forward despite its weak opening last Friday.
Source: WSJ
