Facebook announced its IPO yesterday, in an effort to raise $5 billion (perhaps more), which will be the largest internet public offering ever. Many people who hold Facebook shares are poised to become millionaires overnight. The New York Times reports a story of one David Choe, a graffiti artist who painted murals on the walls of Facebook’s first offices in Palo Alto, California. He chose to be paid in stock rather than in cash. Now, he’s poised to become an ultra-millionaire, to the tune of $200 million or more.
Many “advisers” to the company at that time, which is how Mr. Choe would have been classified, would have received about 0.1 to 0.25 percent of the company, according to a former Facebook employee. That may sound like a paltry amount, but a stake that size is worth hundreds of millions of dollars, based on a market value of $100 billion. Mr. Choe’s payment is valued at roughly $200 million, according to a number of people who know Mr. Choe and Facebook executives.
Sounds like Choe has won the lottery (by comparison, a $380 million Mega Millions jackpot in 2011 had a cash payout of $240 million, the largest in the history of the American lottery).
On a final note, what is the artist’s advice for living? “Always double down on 11. Always.”