Shares of the most renowned social networking site - Facebook Inc (NASDAQ:FB) show a fierce movement when Peter Thiel, the Director of the company and also the co-founder of PayPal, sold roughly $400 million worth of shares en-cashing most of his stake in the company.
The trading occurred last week on Thursday and Friday at an average prices ranging between $19.27 and $20.69 per share after the end of the first lockup. The first lockup, however, restricted both the investors and the insiders from doing away with their shares following the initial public offering. The driving force behind Thiel’s selling off his approximately 20 million of his Facebook shares was a trading plan which was incepted on May 18th. Even after selling his 20 million shares, Thiel still holds roughly 5.6 million shares of the social networking site.
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Reports of Accel Partners, a Silicon Valley venture capital firm who is also one among the early backers of Facebook also distributed roughly 57.8 million Facebook shares to the limited partners and general partners of its various funds on Thursday. This gives those partners an option to sell or hold on to their distributed Facebook shares as they see fit.
Though what begun from a dorm room in the Harvard University by Mark Zuckeberg, has been the first and the only company so far in U.S to debut with a market value of more than $100 billion, spells disillusion for its current investors and insiders in being effective enough to formulate a course of action to reverse slowing revenue growth.
Shares of FB are now down 1.50% after surging over 5% in the prior trading session.