Facebook investor cashes out

closeThis article could be out of date, as it was published 2 years 1 month 2 days ago.

Facebook director Peter Thiel has cashed the majority of his stock in the social networking company, equating to 20m shares worth around US$400m.

After a selection of Facebook insiders became eligible to sell stock they own in the social networking company due to the expiry of a ‘lock-up’ period, up to US$1.91bn shares were available for sale.

The industry did not expect any action on the market, however, but Thiel sold his shares on Thursday and Friday – for prices ranging between $19.29 and $20.69 per share.

If fellow insiders follow suit and the $1.91bn shares do flood the exchange, it would represent four times the 421m shares currently trading since Facebook’s initial public offering in May.

The PayPal co-founder and early Facebook investor still owns around 5.6m shares of the company but declined to comment on the sales, released through a regulatory filing.

Shares of Facebook finished Monday’s regular trading session at $20.01, representing a near 50% decline from their $38 offering price in May.

What do you think? Are investors right to jump ship? Tell us your thoughts below.

Follow Us
on Google+
Sponsored

Review: Huawei Ascend P7

NetGuide Chances are that you’ve heard of Huawei, they make a lot of budget smartphones. What many don’t know is that Huawei also make some pretty tasty flagship devices. I spent some time with their latest, the Ascend P7 and came away moderately impressed.   Read More →