In a long line of acquisitions this past year, Facebook Inc. announced their latest purchase earlier today: themselves. In a stock buyback deal, Mark Zuckerberg and several top executives in the company will purchase all of the publicly held shares and become a private company once again. Zuckerberg announced that the company will be split among the company's top executives.
Facebook has purchased many big name tech companies in the last few years including Instagram, Oculus, and WhatsApp. After months of planning and decision making with the board of directors, Zuckerberg and executives at Facebook concluded that the next best company that they can acquire is their own.
"It was a mistake to offer my company to the public," said Mark Zuckerberg. "Although we have acquired other tech firms in the past year, I think holding onto our own will be the best long-term investment. We see a lot of potential in Facebook and have an even greater vision to enhance the social and commercial experience we can bring to our users."
Facebook went public last May with an IPO of $38 per share and market capitalization of $104 billion. Now nearly a year later, it's stock price has reached $63 per share with a total market cap of $164.5 billion.
The announcement of the buyback comes as Facebook Inc. posted $2.5 billion in ad revenue and over $600 million in profit for Q1 for 2014. Facebook is to pay $70 per share and plans to finalize multi-billion dollar the deal by next Tuesday.
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