The $100 Billion Bet
Lyons, Dan, Newsweek
Byline: Dan Lyons
Facebook reportedly plans to go public next year. Here's what it will mean for the major players.
MARK ZUCKERBERG: CEO/President
Facebook's 27-year-old CEO would be worth $24 billion, making him the 14th-richest person in the world and cementing his position as the most powerful person in Silicon Valley.
COFOUNDER Eduardo Saverin felt cheated by Zuckerberg and sued, ending up with 5% of Facebook, which will be worth $5 billion. Founding president Sean Parker got tossed out early but still owns 4%, worth a potential $4 billion. Cameron and Tyler Winklevoss, who sued Zuckerberg claiming he stole their idea, got a settlement that included 1 million shares of common stock.
BANKERS will be clawing one another's eyes out to handle this megadeal, which will generate tens of millions of dollars in fees. Goldman Sachs is already a winner, having invested its own money and money from its clients at a $50 billion valuation earlier this year. Goldman will likely get a piece of the IPO action too.
THE rock star's Silicon Valley venture-capital company, Elevation Partners, owns 1.5% of Facebook, which will be worth $1.5 billion. The Facebook deal is the smartest bet Elevation has made, one that ensures the company can deliver a return for its investors instead of a loss.
PEOPLE thought it was nuts when …
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Publication information: Article title: The $100 Billion Bet. Contributors: Lyons, Dan - Author. Magazine title: Newsweek. Volume: 158. Issue: 24 Publication date: December 12, 2011. Page number: 22. © 2009 Newsweek, Inc. All rights reserved. Any reuse, distribution or alteration without express written permission of Newsweek is prohibited. For permission: www.newsweek.com. COPYRIGHT 2011 Gale Group.