“Our employees are
subject to “market-stand-off” provisions that prohibit them from selling or
otherwise transferring any of their common stock or securities convertible into
or exchangeable for shares of common stock until November 14, 2012. We intend to waive this market stand-off
provision to allow our employees who were employed by Facebook through October
15, 2012, to sell shares held by them or shares subject to Pre-2011 RSUs (to
the extent the service condition has been met) or vested stock options on the
date that is four trading days following the announcement of our third quarter
2012 financial results, which announcement is currently scheduled for October
23, 2012.”
This gives employees the chance to go to the head of the
line (in some respects) and sell up to 234 million shares in advance of another
777 million shares that will become eligible to be sold on November 14. These shares aren’t subject to a reduced tax
when sold. They’ll be taxed as ordinary
income. No 15% here!
It’ll be an interesting day when the quarter’s financial are
announced October 23. There may not be a
lot of Zuckerberg trick or treaters on October 31 following the earnings announcement.
Tuesday’s market cap of $37.98 billion is within $13B
projected by Anup Srivastava, an assistant professor of accounting information
and management, Kellogg School of Management.
He ran a valuation model prior to the initial public offering and arrived at a base case valuation of $25
billion. Sometimes the smartest guys in
the room are, uh, overly optimistic.
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