Graffiti Artist Scores $200m Windfall

The graffiti artist who took Facebook stock instead of cash for painting the walls of the social network's first headquarters made a smart move. The shares owned by the artist, David Choe, are expected to be worth more than $US200 million ($187 million) when Facebook stock trades publicly this year.
The social network company announced a $5 billion public offering this week, which is expected to value the company at up to $US100 billion.
The Facebook founder Mark Zuckerberg, 27, has 533.8 million shares, worth $US28.3 billion based on a company valuation of $US100 billion, or $US53 a share. He has undisputed control of the company - owning 28.4 per cent of the company outright and controlling 57 per cent of the voting rights.
Facebook's first outside investor, Peter Thiel, the billionaire contrarian, led a $US500,000 investment in Facebook in late 2004. He has 44.7 million shares that could be worth more than $US2 billion. Elevation Partners, the venture capital firm of Bono, the U2 frontman, paid $US120 million for a chunk of Facebook's shares in 2010.
Choe's payout could provide more money from his paintings than Sotheby's attracted for its record-breaking $US200.7 million auction in 2008 for work by the artist Damien Hirst.
In 2005, Choe was invited to paint murals on the walls of Facebook's first offices in Palo Alto, California, by Sean Parker, then Facebook's president. As pay, Mr Parker offered Choe a choice between cash in the ''thousands of dollars,'' according to several people who know Choe, or stock then worth about the same amount. Choe, who has said that at the time that he thought the idea of Facebook was ''ridiculous and pointless'', nevertheless chose the stock.
Many ''advisers'' to the company at that time, which is how Choe would have been classified, would have received about 0.1 per cent to 0.25 per cent of the company, a former Facebook employee said. That may sound like a paltry amount, but a stake that size is worth hundreds of millions of dollars, based on a market value of $US100 billion valuing Choe's payment at about $US200 million.