Zuckerberg sells 41mn Facebook shares to help pay taxes

Wellington – Facebook CEO Mark Zuckerberg is reportedly selling the social networking company’s shares to help pay taxes.

Zuckerberg, along with Facebook board member Marc Andreessen are going to offer about 3.9 billion dollars, which includes 27 million Facebook shares and additional 41.35 million shares by the CEO.

According to stuff.co.nz, the follow-on sale, first since the company’s public debut in May last year, is expected to raise about 3.9 billion dollars.

Facebook is set to join the Standard & Poor’s 500 Index, an event that triggers demand from index funds and other institutions to own a company’s stock.

Meanwhile, a portfolio manager with Highmark Capital, Todd Lowenstein said that it is never a positive sign when insiders are dumping massive quantities of stock.

However, he pointed that the company is now being added to the S&P 500 Index and so there will be large demand for the shares from index buying and index hugging money managers and the latest move will be absorbed without much disruption.

Facebook would use the proceeds for working capital and other corporate purposes, while Zuckerberg would use the majority of his proceeds to pay taxes he will incur in connection with his exercise of an option to purchase 60 million shares, the report added.(ANI)