Tomahawk, WI 12/20/2013 (BasicsMedia) – Facebook Inc (NASDAQ:FB) has announced that it is freeing about 70 million shares for sale. This number includes the company’s CEO Mark Zuckerberg 41.35 million shares. After the sale, the CEO is expected to pocket about $2.5 billion.

It has been reported that Zuckerberg is intending to use the proceeds to pay some taxes and also to donate about $1 billion to unnamed charity. But there is also something in this transaction which investors should understand.

By reducing his share holding, Zuckerberg will have also trim his voting power in the company. Currently he controls about 65.2 percent of the company’s voting power. After the sale of his 41.35 million common stocks, this voting power will come down to 62.8 percent.

However, it is also reported that Zuckerberg is intending to acquire another stock of Facebook Inc (NASDAQ:FB) which gives him higher voting power. The company has two stock categories; the class A shares are entitled to one vote each while the class B shares are entitled to 10 votes each.

Zuckerberg becomes one of the few insiders who are unlocking their shares for sale since Facebook Inc (NASDAQ:FB) debuted in May last year. In any case, this will be the second time that Zuckerberg sells his shares in the company. He sold about 30.3 million of his shares when the company listed last year, earning about $1.1 billion.

Facebook selling shares

It seems that news reports are devoted to the coverage of Zuckerberg’s trading of his company’s shares, so much so that there is little mention of Facebook Inc (NASDAQ:FB) selling its own shares as well.

The company is expected to sell about 27 million shares valued at $1.5 billion. However, the company reports that it still doesn’t have an immediate plan for the net proceeds. But the company is expected to continue its technology and asset acquisition streak so that it can boost its growth going forward.

Of late the company has been making headlines with its acquisition of startups and investment in Internet infrastructure. As for startup acquisition, the company was reported to be offering about $3 billion for the purchase of the fast-growing mobile app Snapchat in a deal that failed to materialize. Instead, it has embarked on revamping its own mobile photosharing app Instagram. It has also purchased some other technologies in the process.

As for Internet investment, Facebook Inc (NASDAQ:FB) is funding the building of underwater and global Internet cable network so that it can have full control of its operations, more so in regards to bandwidth speed and quality.

New developments

The company is concerned about its status as the leading social network in the world. This is more than just pride, it is money and in efforts to secure this position the company has been improving its platform to attract more users as well as more advertisers.

This week Facebook Inc (NASDAQ:FB) launched a video ad service to appeal to brand advertisers. It has also recently improved its news feed offering. And in terms of business performance, it has met the S&P 500 Index admission requirement and is expected to join the benchmarking index Friday.

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