Facebook IPO: Could Mark Zuckerberg Make $24 Billion?

Facebook IPO could Mark Zuckerberg make $24 billionA million dollars isn't cool. You know what's cool? Being as wealthy as a quarter of the households in the United States combined. Well, it may be more scary than cool. But it's a reality for Mark Zuckerberg, who could gain $24 billion when Facebook reportedly plans to go public at a valuation of $100 billion in the spring of 2012. The 27 year-old's net worth after the IPO, according to The Wall Street Journal, would be roughly equal to the combined net worth of the poorest 24.7 percent of our nation.

While the thought of one entrepreneur acquiring wealth that's roughly equivalent to the wealth held by 27,909,024 American households may be mind-boggling, it's hardly something new. For one, analysts have been forecasting that Facebook will go public at a $100 billion valuation since January 2011, though back then, Goldman Sachs and a Russian billionaire invested $500 million in the social network at a $50 billion valuation. In addition, initial public stock offerings, often referred to in startup land as "the holy grail," have been enriching founders for decades. It's one of the big reasons people risk it all to start new businesses.

But Zuckerberg's potential windfall may be the largest amount an individual founder has ever netted from an IPO, a testament to his 'take the money and maintain control' attitude. FactSet, a financial data and software firm, crunched the numbers and here's how Zuckerberg's potential take stacks up to some of the more notable IPOs in the last 10 years:




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Alfred

Let's keep a couple of things in mind: Mark Zuckerberg doesn't have the 24 billion dollars yet. Even if the Initial Public Offering of Facebook comes to market at the planned valuation, and Mark Zuckerberg's stake would be worth 24 billion dollars, that value is ON PAPER. If he tries to sell too big a chunk of his stock, he will depress the price and his stake will be worth less. He would still be very rich, but he wouldn't have 24 billion dollars.
But there is another thing. The IPO is planned for the Spring of 2012. If the sovereign debt crisis in Europe goes completely out of control, it will depress financial markets around the world and dumping a hundred billion dollars' worth of Facebook stock on a frightened public might not be possible. Good bye IPO and 24 billion dollars!

December 07 2011 at 12:27 PM Report abuse rate up rate down Reply
ANITA SILVERMAN

stacysole02 shame on you - you are such a bigot and so stupid. You really need to learn how to spell and check what you are typing. - very poorly educated. Did you also complain when Bill Gates, Steve Jobs, Warren Buffet all made millions. Do you really think a smart JEW would allow the government to take away all his profits?? He will give back to all walks of life all those profits, so be happy that he has made all that money. Also be very careful in your thoughts about Israel using the nuclear weapons to destroy Iran. If you are as old as you say, then you will clearly remember that the USA did the same with Japan for self survival. I am Jewish and just as deeply angry with Bernie Madoff. He is a shame to every Jew and should be punished to the greatest extent. Oh yes, we have given to our country so much in the fields of medicine, science, music, entertainmrnt, education, business and I can go on and on and yet people with your mentality have the nerve to make such nasty remarks.. Shame on you and stop taking up all these pages with your poisonous comments.

December 07 2011 at 11:19 AM Report abuse rate up rate down Reply
BUFFALO

This has that .com feel to it and if you buy into facebook when and if its offered I see no upside and after a very short love affair with the market the stock would be evaluated and the real value will be accessed and assets+ earnings will determine the real value and I would stay clear till the dust settels or be prepaired to take a bath!!

December 07 2011 at 9:14 AM Report abuse +1 rate up rate down Reply
Genius_Kevin

50 Richest & Most Succesful School dropouts in the world. From NO degree to totally NO education!

http://afrinerds.wordpress.com/2011/12/06/50-richest-most-succesful-school-dropouts-in-the-world-from-no-degree-to-totally-no-education/

December 06 2011 at 9:41 AM Report abuse rate up rate down Reply
kastmaster2105

I need 50K to refurbish this old house in 77563. serious...ed in tx

December 05 2011 at 11:48 AM Report abuse rate up rate down Reply
1 reply to kastmaster2105's comment
April

kastmaster ever heard of peer to peer lending... like lendingclub.com

December 06 2011 at 5:44 AM Report abuse rate up rate down Reply
ttranetzki

He won't have a choice as The Government will take it from him and then he'll be just another 99% person!

December 05 2011 at 10:55 AM Report abuse rate up rate down Reply
1 reply to ttranetzki's comment
warrenbent

Hurray for thuggery?

December 05 2011 at 11:14 AM Report abuse rate up rate down Reply
WarehouseFlats

i'm sure he'll donate most of it to the 99 percenters.

December 05 2011 at 7:20 AM Report abuse rate up rate down Reply
Dereck

I'm wondering how far into the "Communication's Age" we will go before the entire United States' Citizenship will begin to realize that most Companies "Net Gains" are left-out and "Gross Revenue" is wildly reported by the Media Money-Watch as they "Smokescreen" the fact that when a Company goes Public all the actual Profit they make, which is normally 3/4+ Less than the Gross Revenue, gets plundered by "Shareholders" which are mostly other Companies and Hedge Funds that represent mostly Companies that are all "Publicly Traded" while they all "Borrow Money from a Borrowing and already Bankrupt and Suffering Government". Can anyone else see a huge "Ponzi Scheme" in all that? That is actually where all our Financial Problems start and finish, and why so many people are left in fear for their and their Families and Loved Ones Financial future. And don't forget that all this fraud is putting every Mortgage in this Country at risk as well as many other Countries Mortgages.

Check these New Stories out you'll see why: (Left Click) and Choose "Search"

The Banker Who Cried Wolf: Wall Street's History Of Hyperbole About Regulation

http://www.huffingtonpost.com/2011/06/21/wall-street-history-hyperbole-regulation_n_881775.html

World's Biggest Banks Face Increased Capital Requirements To Keep Taxpayers Off The Hook

http://www.huffingtonpost.com/2011/06/17/worlds-biggest-banks-face-increased-capital-requirements_n_878970.html

Banks Set To Cut Spending, Staffing Due To Regulations, Weaker Markets

http://www.huffingtonpost.com/2011/06/17/wall-street-to-cut-expenses-staffing_n_879191.html

Bank Of America Warned By U.S. Regulators It Must Get Stronger:

http://www.huffingtonpost.com/2011/11/22/bank-of-america-warned-by_n_1107270.html

Committee Approves Bill To Cut Federal Workforce:

http://jobs.aol.com/articles/2011/11/03/committee-approves-bill-to-cut-federal-workforce/?icid=maing-grid77Cdl197C109813

The 21st Century Act
stipulates on pg. 85 that "Only Nonbank Consumers can
suffer losses on any Accounts in the Federal Reserve System" also “Any Second
or Third Party Presenters utilizing a Banks Contracts and/or Agreements to
seek Claims shall be considered that Bank under the Rules and Regulations”.
On Page 86 it states "The expanded definition also includes Credit Cards and Home Equity Lines of
Credit".
Also on Pages 100 and 101 "In any Financial Claims the Indemnifying Bank
(Parent Bank) must be Identified".

21st Century Act:
http://www.federalreserve.gov/boarddocs/press/bcreg/2004/20040726/attachment. pdf

Judge (Chief Judge Ben C. Clyburn) dismisses hundreds of Maryland debt cases(40,000 in all):
(21st Century Act: Final Amendments to Regulation CC Precedent),

http://articles.baltimoresun.com/2011-09-21/news/bs-md-sunshine-financial-dismissals-20110921_1_debt-collection-midland-funding-mann-bracken-llp

December 04 2011 at 6:08 PM Report abuse rate up rate down Reply
2 replies to Dereck's comment
Dereck

If you don't understand this Post, please watch this Explanatory Ad on YouTube:

http://www.youtube.com/watch?v=l_R4bPGjDTc

December 04 2011 at 6:21 PM Report abuse rate up rate down Reply
warrenbent

Businesses profits are "plundered" by shareholders. The profits belong to shareholders, you fool.

That's like saying employees wages are "plundered" by workers.

December 04 2011 at 6:57 PM Report abuse rate up rate down Reply
kevinhughes215

Serious question, what exactly makes him worth this much? can someone explain.

December 04 2011 at 3:18 PM Report abuse rate up rate down Reply
2 replies to kevinhughes215's comment
Totally Tomboy

Yes, everyone on Facebook... the day everyone leaves facebook.. is the day he is worth nothing......

December 04 2011 at 4:01 PM Report abuse rate up rate down Reply
warrenbent

First, the article makes certain assumptions regarding a market valuation of shares in a supposed upcoming IPO.

If we accept these assumptions on their surface, then what will make him worth this much is the ownership of 24.7% of the outstanding stock of a company whose market value is $100 billion.

December 04 2011 at 4:03 PM Report abuse rate up rate down Reply
arc23con

Raise his taxes.

December 04 2011 at 9:41 AM Report abuse +6 rate up rate down Reply
1 reply to arc23con's comment
J.M.Keyes

Yes Raise His Taxes, but raise everyones taxes. People do not realize that even if you taxed the top two percent 100% we would never get out of debt. The majority of the money lies in the middle class, and as much as everyone and every politician won't admit we need to raise taxes on EVERYONE.

December 05 2011 at 5:25 AM Report abuse rate up rate down Reply