After a lengthy amount of rumbling, Facebook finally filed its IPO paperwork yesterday. However, while the company may be going public, it will still very much be firmly controlled by its Co-Founder Mark Zuckerberg.
Officially, Facebook is seeking to raise US$5 billion dollars for its IPO, but analysts believe that it could raise as much as US$10 billion from investors. If the latter winds up happening, the company would be valued at US$100 million. Zuckerberg, who has economic control of 28% of the company’s shares would then be worth US$28 billion, and thus become the fourth-richest American.
In terms of decision-making, the buck will pretty well stop at Zuckerberg, as he will have control of 56.9% of the voting shares.
“[Zuckerberg] will control all matters submitted to stockholders for vote, as well as the overall management and direction of the company,” read part of the letter Facebook released in regards to its IPO filing.
To gain further voting authority, Zuckerberg reached agreements with numerous Facebook investors, which gave him voting rights over their shares in most situations.
Facebook is expected to officially go public by the middle of this year.
As The Who once sang, “meet the new boss, same as the old boss.”