10/02/2010 // San Francisco, California, US // TiffNews10 // News Desk
San Francisco – Facebook is reportedly splitting its stock 5 for 1. As reported by Reuters, a spokesperson for the privately held company recently told the news source that the split would bring the value “back down into the range of other private companies.”
Spokesman Jonny Thaw is noted in the report to state that an initial public offering was not currently in the works for Facebook, which has enacted two stock splits prior.
Another source is quoted in the report as stating of the opportunity the split provides for employees and recruits in obtaining a larger number of shares without changing the total stock value, “If you were going into Facebook, before they would have been able to say I’m going give you 10,000 restricted stock options, now they can say I’m going to give you 50,000; it sounds better… It’s all optics.”
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