Facebook CEO Mark Zuckerberg to sell 41.35M shares

Facebook announced a proposed follow-on stock offering Thursday, noting that 70 million shares of Facebook stock will hit the market, most of which will come from CEO and Co-Founder Mark Zuckerberg.

Facebook is conducting a secondary offering of 70 million Class A shares, 41.35 million of which will come from Zuckerberg (the company notes that the majority of the shares are being sold to cover taxes on options being exercised). Facebook board member Mark Andreessen is selling 1.6 million shares and Facebook itself is offering 27.05 million newly-issued shares.

Zuckerberg is also giving 18 million shares to charity.

As of 11:10 a.m. PST, Facebook’s share value is worth $54.64.

Facebook announced the news in a press release:

Standard & Poor’s, a division of McGraw-Hill Financial Inc. (S&P), has announced that, effective as of the close of trading on December 20, 2013, it plans to include Facebook’s Class A common stock in the S&P 500 Index, which is comprised of 500 common stocks that S&P selects. Shares of Facebook’s Class A common stock will be offered primarily to index funds whose portfolios are primarily based on stocks included in the S&P 500 Index.

Facebook intends to use the net proceeds of the offering for working capital and other general corporate purposes.  Facebook will not receive any proceeds from the sale of shares by the selling stockholders. Facebook expects that the majority of the net proceeds Mr. Zuckerberg will receive upon the sale of shares in the offering will be used to satisfy taxes that he will incur in connection with his exercise, in full, of an outstanding stock option to purchase 60,000,000 shares of Class B common stock.

Readers: How will this affect Facebook’s value on Wall Street?

Image by Courtney Rundles.