Start-Ups

Geek Trivia: What three Facebook non-founders stand to profit the most from the company's IPO?

Three individual investors stand to make a substantial amount of money from Facebook's impending IPO -- despite not being company founders.

To no Facebook geek's surprise, Sean Parker -- the guy played by Justin Timberlake in The Social Network and famous in his own right for founding Napster -- is one of the trio of Facebook IPO super-beneficiaries.

Venture capital fanboys (they exist) also won't be surprised to learn that PayPal cofounder Peter Thiel -- Facebook's original VC investor -- is the second non-founder ready to rake in crazy IPO profits.

The final member of the super-profit trio? Bono, the lead singer from U2. He bought equity in Facebook via his shell investment firm Elevation Partners.

Facebook is looking to raise $5 billion from its IPO against a $100 billion total valuation. If that price holds, here's what the top six individual investors look to own in Facebook stock:

  • Zuckerberg - $12 billion
  • Moskovitz - $3 billion
  • Saverin - $2.5 billion
  • Parker - $2 billion
  • Thiel - $1.5 billion
  • Bono - $750 million

Of course, the collective pool of Facebook employee stock is worth more than any of these profiteers, as they'll earn an aggregate $15 billion if all goes according to plan. Get ready for another crop of Silicon Valley paper millionaires.

Those aren't just some eye-popping personal profits; they're a monetarily mind-numbing moment of Geek Trivia.

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About

Jay Garmon has a vast and terrifying knowledge of all things obscure, obtuse, and irrelevant. One day, he hopes to write science fiction, but for now he'll settle for something stranger -- amusing and abusing IT pros. Read his full profile. You can a...

2 comments
rmerchberger
rmerchberger

IPO was March 13, 1986; 8 months after my 18th birthday.... Initial stock price was $21, which would allow me to purchase 47 shares. [[ /me researches a little (read: googles) for value of 1 share then compounded today... ]] 1 share at IPO equals 288 shares today (after splits) which would total 13,536 shares (for the above example.) At current stock price of $32/share, that would be worth $433,152. Not to mention this: Dividends started being paid per share just *after* the latest split - including one monster (the 4th dividend paid) of $3.08/share -- Total dividends paid per share was (if I didn't oops) $6.91/share * 13536 shares = $93,534 earned on dividends; so total value would be $526,685. [sigh] is right...

Jay Garmon
Jay Garmon like.author.displayName 1 Like

...what would it be, and when would you do it? Rules: You can't have bought the stock before your 18th birthday, and you can't spend more than $1,000.00. The easy answer for me is Apple. On Jul 17, 1996 (I was 19 years old, just out of my freshman year at college) and the AAPL stock price closed at $4.22 a share. For my thousand dollars, I could have bought about 237 shares. In Dec. of '96, Apple bought NeXT Computers, paving the way for Steve Jobs's return. Today, those shares would be worth $128,433.65. [sigh]

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