Facebook IPO could mean billions for California

Facebook IPO could mean billions for California

Facebook’s public stock offering this week is projected to generate between $1.6 billion and $2.1 billion through mid-2013 for California’s budget as shareholders cash in their shares.



By (AP)

Published: Wed 16 May 2012, 9:29 AM

Last updated: Tue 7 Apr 2015, 12:25 PM

The nonpartisan Legislative Analyst’s Office on Tuesday increased the state’s revenue projection after the online social network raised the upper range of its initial stock price from $35 per share to $38.

The higher state revenue projection assumes voter approval of Gov. Jerry Brown’s tax-hike initiative in November.

The analyst’s report says Facebook is expected to drive one-fifth of the growth in California’s personal income this year.

CEO Mark Zuckerberg will make a significant contribution to the state’s finances. Department of Finance spokesman H.D. Palmer says California could receive $195 million when he exercises his option on 60 million shares.


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