Mark Zuckerberg is, among many other things, the highest-profile taxpayer on the planet today.
After today's Facebook IPO, Zuckerberg will owe nearly $200 million in California state taxes alone. That's "among the largest tax liabilities that a single individual has ever paid at a given point in time," says Jason Sisney of the California State Budget Legislative Analyst's Office.
Zuckerberg's profits will be taxed at a 10% rate in California. That's a much higher rate than in many other states.
Steve Henn talks with Steve Inskeep on 'Morning Edition'
Facebook's much-publicized first sale of stock to the public started with a bang late this morning as the price per share jumped. But though the volume of shares sold was a record for an initial public offering, the stock's price gave up its gains as the day continued.
By the end of trading in the U.S., Facebook had settled right at the $38 initial offering price that had been set before shares went on sale.
When Facebook makes its initial public offering Friday on the NASDAQ, the stock will be priced at $38 per share, a price that's expected to bring in between $16 billion and $18.4 billion to the company. CNBC reports:
"[The price makes] it one of the most lucrative offerings the Street has ever seen. With that valuation taken into consideration, Facebook goes public with the highest valuation — in the $100 billion range — of any company on record at the time of its IPO."
Facebook's initial public offering is shaping up to be one of the largest in history. This morning the company told the Securities and Exchange Commission that it was expanding its offering ... again.
Now Facebook is planning to raise up to $16 billion from investors by taking a small slice of the company to the public. And it will likely be worth more than $100 billion on its opening day of trading. It could easily go higher.
Looking to get more popular on Facebook? Alex Melen will sell you 1,000 "likes" for about $75.
Melen runs an Internet marketing company. About six months ago, companies he worked with started coming to him more and more with a simple problem: They had created pages on Facebook, but nobody had clicked the "like" button.
"You would go there, and there would be two likes," Melen says. "And one of them would be the owner. And people right away lost interest in the brand."