Facebook Inc CEO and founder Mark Zuckerberg is set to sell 41.4 million shares worth about $2.3 billion to pay a tax bill, according to Reuters.
Facebook shares have doubled in value during 2013, but fell 1.8 percent to $54.57 as of 10:05 a.m. in New York.
A company filing released this week says that Zuckerberg's sale is significant since it will likely reduce his voting power from 58.8 percent to 56.1 percent.
"We do not currently have any specific uses of the net proceeds planned," the company said in the filing. "We may use a portion of the proceeds to us for acquisitions of complementary businesses, technologies, or other assets."
Facebook believes Zuckerberg will use a majority of the net proceeds earned from the sale to pay taxes "related to the exercise of an option to buy 60 million Class B shares" according to Reuters.
One Class A share is entitled to one vote, while Class B shares are entitled to 10 votes and can be converted into one Class A share at any time.
The company also announced that board member Marc Andreessen is going to sell 1.65 million Class A shares, and Facebook will sell 27 million Class A shares, according to Reuters.
JPMorgan Chase & Co. will manage the transaction, along with Bank of America Corp., Morgan Stanley and Barclays Plc.
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