The Associated Press Facebook and its Chairman and CEO Mark Zuckerberg are selling a combined 70 million shares of Class A stock as the social media company prepares to join the Standard & Poor's 500 index. The offering includes more than 41 million shares from Zuckerberg, who also will buy Class B shares that carry more voting weight. The company said Thursday that the Class A shares will be offered mainly to index funds whose portfolios are based on stocks included in the index. The S&P 500 will add Facebook today after markets close. The index is a list of companies that have a market capitalization over $4 billion and is meant to be a snapshot of the U.S. economy. At Thursday's closing price of $55.05 per share, that would put the total value of the offering, not counting expenses, at about $3.85 billion . Zuckerberg's offering of 41.3 million shares would generate about $2.3 billion based on Thursday's close, not counting expenses. The company said Zuckerberg will use most of the proceeds from his sale of Class A shares to pay taxes he will incur in connection with exercising an option to buy 60 million shares of Class B stock. He's also using part of it for charitable contributions. Each Class B share gives the shareholder 10 votes, while each Class A share comes with one vote. The deal will give Zuckerberg control over nearly 63 percent of the voting power of the company's outstanding stock, according to a Securities and Exchange Commission filing. Facebook will offer 27 million Class A shares, and the company expects to use any proceeds for working capital. Board member Marc Andreessen will offer 1.6 million Class A shares. The company will have 2.54 billion Class A and Class B shares outstanding after the offering. Bloomberg News contributed to this report.
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