Facebook must Raise $5 billion for Taxes

Social media giant, Facebook, has revealed that it needs to raise approximately $5 billion through an extra share sale later this year to cover a tax bill levelled at its employees.

The proposed sale of shares is intended to cover taxes that will be incurred by its early executives and near three thousand rank-and-file-employees once the company goes public.

According to the initial public offering Facebook filed with the US regulators, the combined value of shares owned by the former as well as present executives and employees will stand at over $23 billion. The figure is larger than Yahoo!'s overall stock market valuation.

Better still the large stock profits likely to be enjoyed by Facebook employees do not include the founder and CEO Mark Zuckerberg's $5.4 billion. As of now, Zuckerberg's stake in the company stands at somewhere around $24 billion.

"Around half of the stock benefits that Facebook has handed to its employees since 2005 are set to vest six months after it goes public, meaning that workers will be able to sell the shares," read a Financial Times report.

"Though the event will also trigger an immediate tax bill," it added, "it (Facebook) plans to sell shares to meet that bill."