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Facebook insiders cash in

Wednesday, May 16, 2012 - 01:34

May 16 - Several of Facebook's early investors are adding their shares to the company's public offering, boosting the size of the IPO by 25 percent. Jeanne Yurman reports.

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TV AND WEB RESTRICTIONS~***THIS EDIT CONTAINS 4:3 MATERIAL*** For the second time in one week Facebook's IPO has grown. Responding to strong investor demand, the social media giant said Wednesday that it will add 84 million shares to its stock offering, floating about 421 million total. The move will expand the size of the IPO by 25 percent. The added shares will come from early investors, Pay-Pal co-founder Peter Thiel and Accel Partners' James Breyer and investment manager Tiger Global - not Facebook itself. As a result, Facebook founder, Mark Zuckerberg's voting power will shrink slightly to under 56 percent from just over 57 percent. The Silicon Valley offering marks a cultural moment. Columbia Business School's Katherine Phillips SOUNDBITE: KATHERINE PHILLIPS, PROFESSOR OF MANAGEMENT, COLUMBIA BUSINESS SCHOOL SAYING (ENGLISH): "Facebook is the first media company of its kind and the only media company of its kind that has been so successful. It's a meteoric rise to success I think that is unprecedented with organizations in any domain really." On Monday, Facebook upped the IPO price range to $34 to $38 a share. The IPO's expanded size plus the higher price range makes Facebook the third-largest initial share sale in U.S. history with an overall market value of more than $100 billion. Jeanne Yurman, Reuters

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Facebook insiders cash in

Wednesday, May 16, 2012 - 01:34