News of Facebook’s impeding initial public offering (IPO) has those in the financial world speculating on exactly what will happen when the ubiquitous social media megacompany offers its first ownership shares to the general public on Friday.
One thing that’s for certain, though is that the cash-strapped state of California stands to see a tax windfall from the event. Facebook’s 28-year-old CEO, Mark Zuckerberg owns 534 million shares of Facebook, and since the company is headquartered in Menlo Park, CA he will likely be looking at a state tax payout of $189 million after the IPO. Once the taxes from other Facebook insiders cashing in is added up, California stands to make hundreds of millions more.
How much will Facebook’s IPO help California’s ailing economy? How can California convince other innovative and lucrative companies to set up shop in the Golden State?
Matt DeBord, KPCC’s business blogger