Friday, September 24, 2010

Mark Z. donates $100 million to schools

Mark Zuckerberg, chief executive and a founder of Facebook, has agreed to donate $100 million to improve the long-troubled public schools in Newark, and Gov. Chris Christie will cede some control of the state-run system to Mayor Cory A. Booker in conjunction with the huge gift, officials said Wednesday.

The three men plan to announce the arrangement on Friday on the “Oprah Winfrey Show.”

Mark Z. has not only the biggest Social Network but does social things too.
But how can he afford to donate $100 million? The company is not public yet and Facebook revenue is expected to be $600 million this year which is fully needed for their growth. Zuck does not get enough salary that he has so much money. He is worth $2.6 billion but only if he can sell the company or if the company goes public.
So either he is paying the money from gross income which would lower the net revenue or he is paying in shares. And all articles are saying Mark is donating not Facebook, therefore it sounds like his money and not company money.

This could be an hint that Facebook will go soon public. Otherwise Newark would have a just a piece of paper but not the needed money. And I doubt that Mark would sell some of his shares on the secondary market to cash $100 million.

I am eager to see the official announcement today, to hear how he can pay so much cash.

- Posted using My iPad

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