Facebook Will Boost Its Credit Line Before The IPO
Facebook has a potentially taxing problem on its hands, and the company will address it by increasing its $2.5 billion credit line.
Facebook has a potentially taxing problem on its hands, and the company will address it by increasing its $2.5 billion credit line.
Reuters reported that Facebook is facing a major tax hit following its upcoming initial public offering, due to employee stock awards that will vest.
The company has said in the past that it intends to pay taxes on the restricted stock units of its employees, and that tab will likely be billions of dollars.
Bart Greenberg, a partner at law firm Haynes and Boone, called the plan a “very expensive obligation” that could become more expensive if Facebook’s stock price rises.
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