Wednesday, September 5, 2012

Facebook rules out share sale to cover $2 Billion tax bill

(Reuters) - Facebook Inc promised not to sell stock to cover a nearly $2 billion tax bill and said it will allow employees to cash in their stock weeks ahead of schedule, moving to soothe nervous investors and its own staff as its share price spirals downward.

The world's largest online social network company, which has lost more than 50 percent of its market value since going public in May, said on Tuesday its total shares outstanding will be reduced by roughly 101 million shares as a result of the move.

Shares of Facebook rose 1.8 percent in after hours trading to $18.05.

Facebook will cover the stock compensation tax bill with existing cash and with borrowing from its credit facilities, the company said in a regulatory filing. Read More