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Facebook Could Create 1,000 Millionaires

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By Myles Collier, Christian Post Contributor
December 9, 2011|12:27 pm

With Facebook set to go public sometime next year some suggest that it would could create 1,000 millionaires, instantly.

With this possibility it has become the most anticipated initial public offering in recent memory. If and when this does happen it is expected to bring the value of Facebook to as much as $100 billion.

Although many start-ups offer shares, Facebook is a special case because few help employees become millionaires. Start-ups usually offer stock and salary as a way to keep employees by enticing them to stay with the company as it grows, thus growing their share in the company.

With over 3,000 employees it is plausible that by the time those involved tally up their Facebook stock value, over one-third of the company's employees will be millionaires.

Now while this may be a long-shot those at the top of the Facebook hierarchy will definitely see huge paydays.

According to Reuters' sources, the company is believed to have about 2.5 billion shares. The company's shares may be priced around $40 apiece. Executives would then walk away with $4 million each for their efforts.

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Facebook's IPO has been long anticipated, but veterans of other start-ups that have gone public say the period after could be filled with new challenges.

Some possible scenarios include employees growing jealous over colleagues with more stock. Other employees might look down on peers who are too quick to sell, questioning their loyalty to the company and causing animosity in the workforce.

And there is always the risk that talented staff will leave to venture out on their own by becoming entrepreneurs or investing in other enterprises.

Some Facebook employees have already left the company to do that, selling their shares ahead of the IPO on private exchanges such as those run by SecondMarket or SharesPost, according to Reuters sources.

 

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