As Facebook’s IPO is Announced, Who Are the Key Players?05/18/2012 by SMCE
After four months of paperwork, hype and speculation, the last piece of the Facebook IPO is in place: Facebook said it has priced its IPO at $38 a share.
At that price, Facebook’s IPO will raise $16 billion, making it the largest tech IPO in history. It’s the third largest U.S. IPO ever, trailing only the $19.7 billion raised by Visa (V, Fortune 500) in March 2008 and the $18.1 billion raised by automaker General Motors (GM, Fortune 500) in November 2010, according to rankings by Thomson Reuters.
Mark Zuckerberg isn’t the only one who stands to gain, here are the other early adopters and investors.
Moskovitz co-founded Facebook with Zuckerberg and moved to Palo Alto with the Facebook boss in 2004. He left Facebook in 2008 to form a new software company, Asana, with Justin Rosenstein, an engineering manager at Facebook. Asana develops software applications Moskovitz hopes “will be to your work life what Facebook.com is to your social life”.
Wealth-X pegs his pre-IPO wealth at $4.8bn, and he holds a 7.5% stake
The Brazilian-born co-founder originally served as Facebook’s chief financial officer and business manager. After a prolonged dispute with Zuckerberg, his 34.4% stake in Facebook was diluted to 5%. He reportedly sold much of his stake in the company in private transactions, raising money to invest in various technology start-ups including Qwiki and Jumio. The terms of his legal settlement with Facebook were undisclosed, and he is not listed among the company’s major stakeholders; his current holdings in Facebook are unclear.
Saverin spends most of his time in Singapore, and it recently emerged he has given up his US citizenship, though he has now insisted that this is not a tax avoiding move and he will pay the estimated $39m in US taxes on his windfall from the IPO.
Wealth-X estimates Saverin’s net worth is at least $ 2.7bn
Chris Hughes, 28
The final co-founder has reinvented himself as a media savvy political operator. Hughes clearly has an eye for rising stars. In early 2007, he left Facebook to work in Chicago on the then-senator Barack Obama’s new-media campaign. In March this year Hughes became the owner of The New Republic, the venerable liberal-leaning politics and art magazine. It’s not clear what his Facebook holding is worth, but it’s believed to be under 1%.
Parker was still a teenager when he co-founded Napster, the music sharing service that sparked a revolution. He spotted Facebook’s potential early and was a mentor to Zuckerberg, becoming the social network’s founding president, helping attract investors.
Wealth-X pegs his pre-IPO at $2.5bn, including a 3.9% stake in Facebook.
A powerhouse professional who is increasingly becoming the grown-up face of Facebook. Sandberg has stints at the US treasury, Google and McKinsey on her resume and recently held a fundraising dinner at her home for Obama. She is late to the Facebook party, having joined in 2008, but her 0.1% holding in the company already puts her net worth at over $69m.
Hoffman is a serial fortune maker worth over $2.35bn, according to Wealth-X. He counts PayPal and professional networking website LinkedIn among his greatest hits and is a partner at Greylock Partners, one of Silicon Valley’s top venture capital firms. An early investor in Facebook, he is believed to retain a 0.2%.
Another Silicon Valley legend, Andreessen was co-author of Mosaic, the first widely used web browser, and co-founder of Netscape Communications, whose 2005 IPO was seen as the starting gun for the last dotcom boom. Andreessen-Horowitz, his venture capital firm, counts Foursquare, Groupon, Skype and Zynga among its investments as well as Facebook.
The former CEO and co-founder of PayPal was an early investor in Facebook and currently sits on the company’s board. A libertarian philanthropist, Thiel is widely seen as one of the smartest men in Silicon Valley.
Wealth-X estimates his wealth at $1.45bn.
Bono, 52, is very keen not to see Beautiful Day headlines when Facebook’s shares go public. The U2 front man is a partner in the media and tech investment group that owns 2.2% of Facebook. His PR people went on the offensive before the IPO to point out that the firm invests for other people, not just its partners, and any winnings would be widely distributed.