Newark Could Have Been A Billion Dollars Richer If It Had Gotten Facebook Stock Instead Of Cash*

cory booker

Photo: Wikimedia Commons

*Update: A person familiar with the situation says that the stock was exchanged for cash at the time of the donation. Too bad.Earlier: Newark Mayor Cory Booker is probably smiling right now.

Facebook CEO Mark Zuckerberg donated $100 million of his stock to the school system back when Facebook was worth $20 billion.

If Facebook IPOs at the anticipated $100 billion valuation, the public school system will get five times that amount, which means one of the country’s worst school systems may soon be $500 million richer. 

The Wall Street Journal reported back in 2010:

Mr. Zuckerberg will fund for the foundation with his private stock in Facebook, and will arrange for a transaction on the secondary market for the foundation to turn the shares into cash as needed, said the person familiar with the discussions. The move will represent a relatively small dilution in his stake in the company, the person said.

It will barely make a dent Zuckerberg’s 28 per cent stake in the company, which makes him worth something like $25 billion.

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