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Facebook status update: opening price hits $43

by Kiran Moodley on May 18, 2012 at 11:55

Facebook status update: opening price hits $43

UPDATE 16:20 GMT: NASDAQ halted trading due to the unprecedented demand from the retail investors.

16:37: Shares of Facebook began trading at $42.05.

After a lot of talk and several status updates, Facebook shares will begin trading in New York today, with the company announcing on Thursday it valued shares at $38 (£24) each, thus making the firm worth $104 billion (£66 billion).

We all know the story of the social network company, but it’s worth another recap: Harvard undergraduate and eventual drop out Mark Zuckerberg created the site in his bedroom with his friends, Dustin Moskovitz, Eduardo Saverin and Chris Hughes in 2004 following the success of Facemash, a site that presented users with two students and make them choose the hotter of the pair. 

Facebook trading time

The Nasdaq said yesterday that Facebook shares would commence trading at 11:00 EST which is 4:00 GMT.

This is evidently well after the US stock market opens at 9.30 EST but this is usual for an IPO. CNN Money noted that Groupon began trading for the first times just before 11:00 too.

The numbers for Facebook quickly escalated so that today more than 900 million people have an account with the eight-year-old company.

Here, we will keep you up-to-date with the latest developments on Facebook’s flotation – one of the biggest and most eagerly anticipated in history – which will make past and present employees millionaires.

Three years after the IPO, two-thirds of (tech) companies had negative returns. Around 60% of companies with offerings since 2010 have negative returns so far.

New York Times

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How much will the founders make?

The Guardian provided a list of how much the key Facebook players will make from the IPO, with Zuckerberg already work $18.95 billion and his fortune post-IPO to rise to outer space.

Name Pre-IPO wealth Stake
Mark Zuckerberg, 28 $18.95 billion 24%
Dustin Muskovitz, 27 $4.8 billion 7.50%
Eduardo Saverin, 30 $2.7 billion 5%
Chris Hughes, 28 Not known 1%
Sean Parker, 33 $2.5 billion 3.90%
Sheryl Sandberg, 42 $69 million 0.10%

Congrats to everyone involved in the project from day one till today, and I especially wanted to congratulate Mark Zukerberg on keeping tremendous stead-fast focus, however hard that was, on making the world a more open and connected place.

Eduardo Saverin

Thank you Facebook video

For some Facebook users, they just couldn't resist making a video thanking Zuckerberg and Co. for the joy he has brought them.

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