Facebook it is no doubt a house hold name in this decade, not to mention for some people it is highly addictive. With approximately 900 million active users, this social networking leader now has nearly 500 million Facebook mobile app users as well. It’s evident the word Facebook is rolling off of virtually everyone’s lips creating a lot of exposure for one company – not to mention how much they have been in the news lately with constant chatter.
On the financial side of things, in February 2012 Facebook took the initial step to becoming a publicly traded company. According to The New York Times “On May 3, 2012. Facebook set the estimated price for its I.P.O. at $28 to $35 a share, according to a revised prospectus. At the midpoint of the range, the social networking company is on track to raise $10.6 billion, in a debut that could value the company at $86 billion.”
Payday Is Coming
You can’t talk about Facebook without noting its wildly controversial start with the “who’s idea was it anyway”, boldly put out there by the movie “Social Network”. Leading us to one of Facebook’s most recent eyebrow raising controversies yet, Facebook’s Co-founder Eduardo Saverin. Apparently Mr. Saverin has joined an extensive list of millionaires who have denounced their citizenship in order to avoid paying U.S. taxes. It is being said his main reason for doing this is because his small percentage in Facebook is about to pay off big time with its IPO (when it goes to a publicly traded company).
Eduardo is Outta Here
Interestingly enough Eduardo’s spokesman, Tom Goodman, stated in an email regarding his announcement to leave the U.S. “Eduardo recently found it more practical to become a resident of Singapore since he plans to live there for an indefinite period of time,” Evidently he will be doing business with surrounding countries as well. How convenient for him.
Not so Fast Mr. Saverin
Mr. Saverin still will not escape the good ole red, white, and blue without Uncle Sam getting his hands in the money bags of the Facebook Co-founder. There is something known as an “Exit Tax” which according to http://www.investorwords.com is basically “A sales charge or commission paid when an individual sells an investment, such as a mutual fund or an annuity. Intended to discourage withdrawals. Also called redemption fee or deferred sales charge back-end load.” It will be very interesting to see how it all plays out.
The Waiting Game
So with the entire buzz around Facebook these days everybody is waiting to see how much they can bank on the public market and just how many folks are willing to fund this internet dynasty.