Technology

Mark Zuckerberg to preserve control over the company

It’s official! Facebook and Mark Zuckerberg have embarked in one of the biggest Internet IPO since Google’s 2004 initial public offering, says Reuters. Investors, however, will have little to say as Zuckerberg plans to preserve his control over the company.

The CEO of the social networking company announced that he will maintain his ownership position in the company. Zuckerberg will own 56.9 percent of the voting shares which is a lot considering that the value of the firm will amount to $100 billion when it goes public. Moreover, recent statistics show that Facebook has 845 million active monthly users.

Spokespersons declared on Wednesday morning that the social network wants to raise $5 billion with the help of the filing. Analysts, on the other hand, think this figure is used to calculate registration fees. The real sum of money that Facebook might raise will most likely reach $10 billion.

If Facebook is valued at $100 billion after the filing, many of the tech giants will be affected. Such is the case of Hewlett Packard Co which will appear incredibly small in comparison with the expanding social network. The IPO will also contribute to the validation of social media as communication and entertainment.

If the accomplishments he has made so far were not reasons enough for women to want to marry him, the filing will definitely make Zuckerberg the most wanted bachelor in the world. The economic control that he currently has over 28 percent of the shares makes him worth $28 billion at a $100 billion valuation, thus making him the fourth-richest American.

The ownership position of the 27-year-old CEO enables him to run the company without a board of directors, thus giving more economic control to Zuckerberg. In fact, he has made several deals with Facebook investors that granted him voting rights over their shares. According to analysts, the Harvard dropout will thus control 56.9 percent of the voting shares.

There is also a downside to Zuckerberg’s decision to retain control, that is, the value of the social network may be slightly lowered. Facebook’s market debut is expected to take place in the middle of the year according to the timetable of IPOs.

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Ronald Silva is one of our newest publishers.He currently lives in Toronto (Canada) with his family.Ronald covers the music and sports sections of DailyGossip.org. Over the past few years, Ronald has participated in various journalistic projects including some of which he started when he worked for a local newspaper in Toronto. Contact him at Ronald.Silva@dailygossip.org.

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