

Mark Zuckerberg On $100 Million Education Donation - charlief
http://techcrunch.com/2010/09/24/techcrunch-interview-with-mark-zuckerberg-on-100-million-education-donation/

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hugh3
I was wondering where Zuckerberg got $100 million in cash. Now I find out it's
"$100 million" in facebook stock? Based on a valuation of... what exactly? And
sellable to whom?

edit: I think I've answered my own question and it's based on a valuation of
$23 billion.

Really? Who here would be willing to buy facebook at a valuation of $23
billion? Even if you think it _could_ be worth that much, I see a lot more
scenarios where it's worth less than scenarios where it's worth more.

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bigmac
_[DELETE: So we should close down schools that are failing, get a lot of good
charter schools and figure out new contracts for teachers so that better
teachers can get paid more money, that more for performance as opposed to just
based on how long you've been there. Have a lot of programs that are after
schools that to keep kids healthy and safe and I mean, Newark, isn't the
safest city. So that's the basic thing. And I mean for...]_

I wonder if that was supposed to be deleted?

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chopsueyar
PR move to hedge againt the negative publicity of "The Social Network"?

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metra
Whatever the motivation, this is a good thing and I think we should isolate
this action of charity from a movie.

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spyne-02139
Who is we? :)

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vaksel
i had to laugh when he mentioned Christie as his inspiration, since he was the
one who took a huge chunk out of the education budget.

Frankly, that money(well it's $100mm in facebook stock) would have been better
spent on Donors Choose. At least, then you'd know the money was going directly
to the teachers.

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borism
so how exactly will the schools be able to sell the stock? trough SecondMarket
like FB employees?

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chollida1
I'd imagine that they can get loan's against it. Many high level employee's do
this when they can't sell their stock.

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jonknee
That's really risky. What happens when everyone realizes the valuation is sky
high and the $100m in paper turns into $20m liquid?

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chollida1
Well why would a bank lend you money to buy a house. What happens when
everyone realizes the valuation is sky high and the $500,000 house turns into
a $100,000 house.

On a serious note, most often executives can't get 100% of the value of their
stock back in line of credit format. 60% to 75% is common.

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borism
Housing prices are generally less volatile than illiquid start-up stock.

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chollida1
agreed, that's why I made sure to point out that it was a joke:)

