Mark Zuckerberg announced his first baby?s arrival on none other than Facebook. Last week, Zuckerberg’s wife, Priscilla Chan gave birth to a 7-pound, 8-ounce daughter, Max. The couple came out with the news on Tuesday to announce her birth.
Zuckerberg said he and Chan will, over time, commit 99 percent of their Facebook stockholdings to such causes as fighting disease, improving education and “building strong communities,” In the same post, the couple had previously pledged to give away at least half their assets during their lifetime, but hadn’t provided specifics, according to foxnews.com
The money will go to the newly founded Chan Zuckerberg Foundation.
In a letter to his daughter Max, Zuck writes:
We will give 99% of our Facebook shares ? currently about $45 billion ? during our lives to advance this mission. We know this is a small contribution compared to all the resources and talents of those already working on these issues. But we want to do what we can, working alongside many others.
It is a joyous occasion for the family, and for the world, which is now 99-percent of Zuckerberg?s Facebook shares richer, stated gizmodo.com
The site further mentioned that?after Zuckerberg?s post went live, an SEC filing was released which reveals a bit more about this whole giving-away-of-Facebook-shares business. It seems Zuckerberg will give away the shares in a trickle and maintain the right to sell them instead of gift them. The filing reads:
For this purpose, Mr. Zuckerberg has established a new entity, the Chan Zuckerberg Initiative, LLC, and he will control the voting and disposition of any shares held by such entity. He has informed us that he plans to sell or gift no more than $1 billion of Facebook stock each year for the next three years and that he intends to retain his majority voting position in our stock for the foreseeable future. Any sale of shares by Mr. Zuckerberg will be conducted pursuant to a trading plan established pursuant to Rule 10b5-1 under the Securities Exchange Act of 1934, as amended (the ?Exchange Act?),
This is a familiar tactic amongst Silicon Valley royalty explains Re/Code?s Kurt Wagner: ?Zuckerberg is creating a charitable trust that?s entirely under his control, a common move among billionaires.?
And if you are thinking, Zuckerberg has hardly any plans of giving away his position as controlling stockholder of Facebook in the near future.