Friday
August 22, 2014

Fair Trade: Facebook Stock for a $29M Home?

|
-A A +A

Fair Trade: Facebook Stock for a $29M Home?

Facebook stock shares have been getting plenty of buzz by investors who want to cash in, and already in anticipation, Facebook investors have been bidding up home prices in Silicon Valley. One man is so confident about the Facebook IPO that he’s willing to give up his home to get a piece of the shares. 

Reporter Jane Wells from CNBC recently reported about an entrepreneur in Los Gatos, Calif. — an area in Silicon Valley— who is making the unusual offer to trade his $29 million home for $29 million in pre-IPO Facebook stock. 

Entrepreneur Ken Raasch says, “I feel like Facebook has a great model, and I’d like to own a piece of it.” 

Raasch and his family purchased the home in 1997 for less than $4 million. The 10,000-square-foot home has six bedrooms, featuring floors made from 16th century bricks imported by France. Nearby the Raasch home, a Facebook investor recently purchased a home for $100 million. 

Whether Raasch’s trade — IPO shares for a home — is even legal is still questionable, however, Wells reports. 

Meanwhile, real estate agents are getting ready for an expected housing rush in Silicon Valley from Facebook investors, who are expected to send housing prices higher there when Facebook does go public. 

Watch the CNBC video about the man’s offer.  

Source: “Man Offers His Home for Facebook Stock,” MSNBC.com (March 23, 2012)

Read More

Facebook IPO to Heat Up Housing Market in Silicon Valley