Ahead of the initial public offering (IPO), the social networking site Facebook founder Mark Zuckerberg intends to exercise his right to purchase Facebook shares at a reduced price, so that later he can sell part of the stock.
So far Zuckerberg has not sold his shares, but now he will have to do it to pay taxes, reports The Financial Times.
Value of the social network is estimated at 80 to 100 billion dollars . Facebook hopes to raise 5 billion dollars with its IPO.
The amount of taxes Zuckerberg will have to pay depends on the value of the company.
If Facebook value hits 80 to 100 billion dollars, Zuckerberg will post a profit of 5-6 billion dollars , but taxes will claim 1.5 to 2 billion dollars , reports The Wall Street Journal.