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What Does the Facebook IPO Mean In Terms of Greece?

Facebook (FB) started trading publicly on the New York Stock Exchange around 11 AM this morning. The opening price, just decided last night, was $38 per share. (As you might have noticed in the year-long build-up to today, the powers that be seem to be...

Facebook (FB) started trading publicly on the New York Stock Exchange around 11 AM this morning. The opening price, just decided last night, was $38 per share. (As you might have noticed in the year-long build-up to today, the powers that be seem to be incredibly cavalier about precision and timetables in the creation of billionaires.) Thus, Western Civilization advances again, even as its putative birthplace implodes. What’s a bigger deal: IPO, Facebook or Grexit, Greece?

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Some back-of-the-envelope calculations, based on today’s exchange rates:

If everyone who could have exercised their stock options had done so, CNN projects there’d be 2.8 billion FB shares outstanding.

Working backwards from their market cap numbers, it appears a more conservative estimate would be 2.1 billion outstanding shares by the end of trading today.


At the start price of $38/share, Facebook would have been valued at $81 billion.

According to the CIA Factbook, the 2010 market value of all publicly traded shares in Greek companies: $72.65 billion.

The amount of Facebook that was withdrawn, in euros, from Greek banks on May 14: 39.5 million launch shares (€1.2 billion).

The amount of Facebook by which the Greek government’s expenses exceeded its revenues in 2011: 645 million launch shares (€19.565 billion).

The amount of Facebook Greece has in its foreign reserves: 190 million launch shares ($7.224 billion).


If Facebook rises to $59.52/share, it would be worth everything Greece currently owes other eurozone central banks (€100 billion).

If Facebook rises to $63.96/share, it would cover all Greek public expenses in a year (€107 billion).

If Facebook rises to $127.97/share, it would be worth all the goods and services produced by Greece in 2011 (€215 billion, nominal GDP).

If Facebook rises to $211.65/share, its market value would equal Greece’s current public debt (€355 billion).


Population of Greece: 11,305,118
Facebook active users: 901 million
Facebook users in Greece: 3,699,520

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Number of Facebook employees: 3500+
Number of Greek government employees: 705,645

Average salary, software engineer at Facebook (Glassdoor, so take with grain of salt): $111,428
US average gross salary (2010): $47,390

Average salary, pre-crisis railway employee in Greece (Daily Mail, so take with grain of salt): $94,926
Greece average gross salary (2005): $27,702 (€21,775)


Facebook revenue (2009, 2010, 2011): $777 million, $1.974 billion, $3.71 billion
Facebook profit (2009, 2010, 2011): $229 million, $606 million, $1.0 billion

Greece GDP (2009, 2010, 2011): $347 billion, $326 billion, $304 billion

Portion of Greek economy estimated to be black-market: 33%
Portion of FB voting shares controlled by Mark Zuckerberg: 57.3%

Beware Greeks bearing austerity.

So don’t despair, small investor bigfooted out of your God-given right to own Facebook at $38 per share. It could have been much worse. You could have invested in the nation-state.

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