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Earliest Facebook investor sells over 20 million shares following IPO lockup period expiry.

Washington, Aug 21 ( ANI ): One of social networking giant Facebook's earliest investors and a board member of the firm, has sold over 20 million shares after the expiry of the lockup period last week.

According to a regulatory filing, Peter Thiel, a former CEO at PayPal, sold his shares through affiliates such as his Founders Fund and other entities, which were between 19.27 dollars and 20.69 dollars, for a total of about 396 million dollars.

Despite Facebook's stock falling to nearly half of its value since its IPO in May, Thiel made out well, as he was one of Facebook's initial investors, investing of over 500,000 in the company in 2004.

According to the Washington, Post, he sold 16.8 million shares in the company's May IPO for about 640 million dollars, and with last week's sale, Thiel has now sold most of his stake in the company.

After the expiration of first of the several lockup periods barring insiders from selling Facebook's stock following its IPO, early investors, who owned a combined 271 million Facebook shares, became eligible to sell their stock.

Another 1.66 billion locked-up Facebook shares will be freed up for sale over the next nine months, likely to place more pressure on the stock, and one of the biggest tests will come in November when about 1.2 billion insider shares will be eligible for sale, the paper said.

The social networking icon's much-anticipated IPO turned sour amid technical problems on the NASDAQ stock market and high expectations. The stock has not topped its 38 dollar IPO price since its first trading day, it added. ( ANI )

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Publication:Asian News International
Date:Aug 21, 2012
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