Tuesday, May 8, 2012

How Much Will Facebook Investors Make From IPO?

The rich are going to get richer when Silicon Valley's biggest IPO starts trading.

Facebook

is only getting about half — or $5.6 billion — of the roughly $10.6 billion it plans to raise via a mega IPO. The other half, or about $4.9 billion, is going to a handful of inside investors — many Silicon Valley notables.

Chief among them are co-founder and Chief Executive Mark Zuckerberg, venture firm Accel Partners, early investor and PayPal co-founder Peter Thiel, Russian tycoon Yuri Milner's DST, and investment bank Goldman Sachs.

And Mark Pincus, co-founder of the gaming company Zynga, is set to get his second payout in six months. He stands to make almost $32 million, on top of his take when the social gaming giant he co-founded went public last year.

Those holding onto their stakes — for now — include: Napster co-founder and Facebook founding president Sean Parker; co-founder and Zuckerberg's Harvard roommate, Dustin Moskovitz; various Facebook executives; and venture capital firm Andreessen Horowitz.

The largest seller is Accel Partners, which will make about $1.2 billion if the shares sell at the $31.50 mid-point of an indicative price range. Zuckerberg, who started Facebook in 2004 from his Harvard dorm room, is selling the next largest chunk of shares worth a little under $1 billion.

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