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Facebook is Uncle Sam's New Best Friend

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  • Description

    FBN's Shibani Joshi explains why the government is winning big in the Facebook IPO.

  • Duration 2:16
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All right you'd think that if you start a company like FaceBook.

You should be able to cash in on the IPO right -- not so fast Uncle Sam has other plans and tech reporter Shibani Joshi joins us now.

Let's say a lot of people are gonna make a lot of money off of this if you -- make mansion in Palo -- no -- no par.

Are there any Cupertino this may be a good time -- -- -- a lot of people are gonna make.

A lot of money including.

-- tax -- we'll talk about the tax bill that test FaceBook IPO.

Sellers are Gannett are gonna face.

In the meantime let's talk about how much money Mark Zuckerberg is going to make because he's gonna sell thirty million shares when the company does finally go public.

In the biggest tech IPO of all time putting in an official rate stats he was rich before you super rich after this IPO he will rake in about seventeen point six.

Billion dollars will be his net worth putting him behind.

Carlos Slim Bill Gates Larry Ellison a lot of tech names on -- -- basis of course of the Amazon also making him one of the youngest and richest people in the world falling.

Richer now than Michael Dell and Steve Ballmer who who's is CEO of Microsoft what is interesting here is -- -- -- a tax bill is gonna be quite large for.

Mark Zuckerberg he has about a 128 million shares options to purchase share -- At a value of six cents.

Per share and the reason he is selling thirty million shares is to pay for these options.

In the company's -- one yesterday they said the majority of his proceeds will go to paying taxes.

Overall he -- paid at a federal government's 714.

Million dollar off just on that day alone.

-- all of this state of California a 189.

Million dollars.

And that's why he's selling and a lot of people are gonna -- making no similar tax BI arrested the state of California bringing in much needed revenue but certainly.

It's got to -- I thought there are locked up that would stop them from selling anything he actually is at least allowed that to -- that deal is allowed to sell in -- -- then we'll see another wave of selling once a lock -- they and it ends at the end of the year -- -- when you can see additional tax revenue -- additional funds coming into the Silicon Valley area.

But it's gonna be steady stream of revenues over the next five years lot of people making money yeah include in the -- California and they -- -- -- money into the -- of IP.

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