Thursday, February 2, 2012

What Tech Bubble? From Founders to Decorators, Facebook Riches

According to a NY Times report the graffiti artist who took Facebook stock instead of cash for painting the walls of the social network’s first headquarters made a smart bet. The shares owned by the artist, David Choe, are expected to be worth upward of $200 million when Facebook stock trades publicly later this year.

The social network company announced its $5 billion public offering Wednesday afternoon, which is expected to value the whole company at $75 billion to $100 billion. Ultimately, that offering will mint a lot of billionaires and millionaires. Some of them are well known, like Mark Zuckerberg, the company’s co-founder, but many others are not household names. Mr. Zuckerberg, 27, has 533.8 million shares, worth $28.4 billion based on a company valuation of $100 billion, or $53 a share. He also has undisputed control of the company, a remarkable achievement since the company has received financing from some of the world’s top business minds. He owns 28.4 percent of the company outright and he controls 57 percent of the voting rights.

Facebook’s first outside investor, Peter Thiel, the billionaire contrarian, led a $500,000 investment in Facebook in late 2004. He has 44.7 million shares that could be worth more than $2 billion. Elevation Partners, the venture capital firm of Bono, the U2 frontman, paid $120 million for a chunk of Facebook’s shares in 2010 and could receive a payout that would help mask less sage investments in Palm and Forbes….

http://www.cnbc.com/id/46230759

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