California has a friend about to write a hefty personal check that could help ease the state budget crunch.
Mark Zuckerberg, the 27-year-old founder and chief executive of Facebook whose initial public stock offering in two weeks could value the company at $96 billion, will cut in the state for an estimated $189 million in cash, according to calculations from PrivCo, which researches private companies.
The federal government will be in the money too, collecting an estimated $714 million in federal income tax from Zuckerberg.
PrivCo calculated the windfalls using the high end of Facebook’s pricing range for its IPO of $35 a share. PrivCo expects Facebook to price its IPO as high as $40 a share, which would add tens of millions more to California and the federal government’s coffers.
“The funds are badly needed as California continues to suffer from budget deficits, and could not have come at a better time for the state,” said Sam Hamadeh, PrivCo’s founder and CEO.