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Facebook Insiders Theil, Moskovitz unload Facebook stock

updated 01:55 pm EDT, Sat August 25, 2012

Upcoming wave of insider sales in October feared

Two Facebook insiders have sold massive amounts of shares awarded to them during the highly-anticipated IPO in the last two weeks. Earlier this week, Peter Thiel sold $400 million worth of shares in the company. Adding to that, Facebook co-founder Dustin Moskovitz sold 900,000 shares in the course of the last six consecutive business days.

Moskovitz, Mark Zuckerberg's Harvard roommate, has unloaded 150,000 shares per business day since Friday, earning over $16.5 million dollars. Moskovitz still owns 6.6 million Facebook Class A shares, and 126.2 million Class B shares. Current Facebook director Peter Thiel sold approximately $400 million in shares of the company when his "lockup" expired last week.

Companies generally impose "lockup" status on insider shares for three months to a year after an IPO to regulate the release of shares on the free market to prevent exactly what's been happening to the share price. Market capitalization has dropped to $42.6 billion since the IPO. The lockup expires on a group of 1.22 billion IPO and founder shares on November 14.

Facebook stock hit a record low on August 17, sinking to just over half the IPO price, as insiders and the first investors in the company became eligible to unload the shares locked up by federal trading restrictions since the commencement of sales. Experts said in response to the drop that the value of the stock and company could plummet further if early purchasers and employees saturate the market with their shares of stock as more lockups expire before the end of the year.



By Electronista Staff
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  1. SockRolid

    Forum Regular

    Joined: 01-21-10

    LOL @ "Facebook stock hit a record low on August 17, sinking to just over half the IPO price..."

    Web 2.0, meet Dot-Com Bubble 2.0.

  1. SockRolid

    Forum Regular

    Joined: 01-21-10

    Does anyone else find it odd that Facebook doesn't seem to have any rabid fans? Apple has always had rabid fans. Google has rabid fans. Even Microsoft has rabid fans (though some of them might be paid astro-turfers.) But Facebook doesn't seem to have any rabid fans.

    Hundreds of millions of users, yes, but how many of them are enthusiastic enough to be called "fans"? Precious few I think.

    In that respect, Facebook is almost like an Oracle or SAP or Autodesk. Big software company, popular product, but it simply doesn't inspire any excitement among end-users. Weird.

  1. Loren

    Fresh-Faced Recruit

    Joined: 03-20-01

    [how many of them are enthusiastic enough to be called "fans"?]

    That's because Facebook Mark decided how we should organize our FB pages into something fairly useless called "Timeline" rather than leave it to us how we wish to present ourselves. Mark might like to look back; many of us prefer to look ahead.

    Choice is good. Their stock will rise again when they cure their autism and allow their users options. Anything less is kid stuff.

    - lsm

  1. blahblahbber

    Banned

    Joined: 02-01-05

    Title should read "Stock now achieves DUMP status in less then... uh... just dump it"

  1. climacs

    Forum Regular

    Joined: 09-06-01

    Facebook Mark decided how we should organize our FB pages into something fairly useless called "Timeline" rather than leave it to us how we wish to present ourselves.


    Like MySpace pages? Yes, those were really awesome to look at. Totally didn't make me want to carve out my eyes with a melon baller.

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