Not everyone gets to be a billionaire, but Facebook will create thousands of millionaires. The company used an unusual equity structure for its employees, issuing warrants that will turn into shares six months after Facebook's initial public offering. Not all of those warrants will vest at once (employees have to work at Facebook for several years to earn their full share), but Facebook has almost 404 million of them outstanding.
There's a lot of approximation in our math, but here's a rough ballpark: At $38 a share, Facebook's outstanding warrants work out to a take of around $4.3 million per employee.
Facebook's IPO will raise $16 billion, making it the third-largest IPO in U.S. history.
|Can Waiting Until 70 to Claim Social Security Be a Big Blunder?|
|Yahoo-Verizon deal said to be near|
|Verizon warns HUGE data users: Switch plans or else|
|Two Uber drivers arrested while on duty|
|'Star Trek Beyond' brings in $59 million at box office|