Lawyers on much-touted Facebook float set to share fees of $2.6m

Lawyers on Facebook’s looming float are set to share a $2.6m (£1.6m) fee from advising on the hotly anticipated public offering, writes the Am Law Daily.

The social media giant specified the $2.6m in legal fees and expenses related to its initial public offering (IPO), according to a regulatory filing on Tuesday (15 May). The fees are a rough estimation and not a precise gauge of invoices related to the myriad legal costs in bringing a company public.

The offering is set to go public on Friday (18 May) in a deal that is expected to value the iconic social networking company at more than $100bn (£62bn).

Benefitting from the payout are Facebook’s advisers at Californian law firm Fenwick & West, which is fielding a team under firm chairman Gordon Davidson and securities group co-chair Jeffrey Vetter.

Simpson Thacher & Bartlett corporate partners William Hinman and Daniel Webb in Palo Alto are advising underwriters on the IPO led by Morgan Stanley, Goldman Sachs, Bank of America/Merrill Lynch, Barclays Capital and JPMorgan Chase.

Fenwick, one of the most established legal advisers to Silicon Valley’s technology community, has been busy in recent months with several assignments for the California-based Facebook.

The firm represented the company on its April acquisition of photo-sharing service Instagram for $1bn (£621m), as well as on its $550m (£342m) purchase of what had been an AOL patent portfolio from Microsoft late last month. In previous years, Fenwick also handled Facebook’s purchase of London-based mobile application developer Snaptu and a $200m (£124m) investment in Facebook by Russia’s Digital Sky Technologies.

Facebook general counsel Theodore Ullyot, deputy general counsel David Kling, and associate general counsel Michael Johnson also appear on the company’s S-1 filing with the Securities and Exchange Commission related to the looming IPO.

Peter Thiel, a billionaire technology investor and former associate at Sullivan & Cromwell who quit the firm in 1996 to start his own hedge fund, is a member of Facebook’s board. Thiel owns 2.5% of Facebook, a stake that could be worth up to $2.5bn (£1.5m).

The Am Law Daily is an affiliated title of Legal Week.

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