Facebook splits stock 5 for 1

Oct 01, 2010

(AP) -- Facebook, the world's largest online social network, said Friday it is splitting its shares five for one, so that it can give larger stock grants to current and prospective employees.

The split doesn't change the actual value of these grants, however.

Spokesman Larry Yu says the split made sense as Facebook's valuation has grown. The split brings shares' value closer to what might be expected for a privately held company, he says.

Facebook isn't disclosing the value of its shares. The stock was recently trading between $72 and $76 on SharesPost, a secondary . This values Facebook at up to $33.7 billion.

Such markets let stockholders sell shares before a company goes public. But those prices don't necessarily reflect how the would trade on public exchanges.

This is the third time Facebook has split its shares. Yu said the first time was in July 2006 and the second was in October 2007.

Explore further: Yahoo CEO to announce 'something special' in NYC

5 /5 (1 vote)
add to favorites email to friend print save as pdf

Related Stories

Facebook's $200M investment values co. at $10B

May 26, 2009

(AP) -- Facebook is getting a $200 million investment from a Russian Internet investor that values the social networking company at $10 billion even though it has yet to turn a profit.

Dow industrials for startups? Pre-IPO index opens

Mar 03, 2010

(AP) -- Because startups aren't required to report regular financial results the way publicly traded companies are, it can be hard for outsiders to get a sense of what hot ones like Facebook and Twitter are really worth.

Private exchange to aid startups seeking more cash

Sep 02, 2009

(AP) -- Since June, a Web site called SharesPost has been helping a small pool of qualified buyers and sellers trade shares in fast-growing startups that have not yet gone public. Now, the private stock exchange is hoping ...

Recommended for you

Canada trying to lure Silicon Valley tech workers

May 17, 2013

(AP)—The Canadian government is trying to lure Silicon Valley tech workers who are frustrated by U.S. visa policies, just as Congress wrestles with a long-sought overhaul of America's immigration system.

Bloomberg appoints ex-IBM CEO as privacy adviser

May 17, 2013

(AP)—Bloomberg LP, the financial news and information service, on Friday said it has appointed Samuel Palmisano, the former CEO of IBM, as an independent adviser on its privacy and data standards.

Apple, US lawmakers in offshore tax showdown

May 17, 2013

Apple and US lawmakers are gearing up for a showdown over taxes—specifically how to deal with the huge stockpile of cash held by Apple and other multinational firms offshore.

Yahoo! sets event amid Tumblr talk

May 17, 2013

Yahoo! scheduled a news conference Monday amid reports it was in talks on with the popular blogging platform Tumblr about an acquisition or strategic alliance.

Tableau Software soars in trading debut

May 17, 2013

(AP)—Tableau Software shares soared in their trading debut Friday after the company and some of its investors raised about $254.2 million in its initial public offering.

User comments : 0

More news stories

US seizes Bitcoin operator accounts

US authorities seized the accounts of a Bitcoin digital currency exchange operator, claiming it was functioning as an "unlicensed money service business," court documents showed Friday.

Morocco to harness the wind in energy hunt

Morocco is ploughing ahead with a programme to boost wind energy production, particularly in the southern Tarfaya region, where Africa's largest wind farm is set to open in 2014.

Galaxy's Ring of Fire

Johnny Cash may have preferred this galaxy's burning ring of fire to the one he sang about falling into in his popular song. The "starburst ring" seen at center in red and yellow hues is not the product of ...

Alaska volcano shoots ash 15,000 feet into the air

(AP)—One of Alaska's most restless volcanoes has shot an ash cloud 15,000 feet into the air in an ongoing eruption that has drawn attention from a nearby community but isn't expected to threaten air traffic.