Facebook Splits Stock 5-for-1

Privately held Facebook Inc. on Friday announced a 5-for-1 stock split, a move the social network giant said would enable it to make larger stock grants to employees.


Facebook has twice previously split its stock on a 4-for-1 basis, in July 2006 and October 2007, and has no plans for an initial public offering of the company's shares.

With users at half a billion and counting, Facebook is closely watched by investors hoping to one day buy public shares in the fast-growing company.

Recent bids for Facebook stock on Sharespost were at $85 a share and $80 a share, and contracts for Facebook shares at the end of August were made for $72 a share and $75 a share.

In June 2009, Reuters reported that shares of Facebook were being quoted on the secondary market for between $10 and $10.50 a share.

One person closely involved in the trading of private company shares said splitting the stock would allow Facebook to give employees and recruits a larger number of shares, even though the total value of the shares would not change.

Earlier this week, Facebook board member Peter Thiel told Reuters the company would probably sell shares to the public at some point, but not before late 2012.

WSJ.com
Reuters.com