Early Facebook investor sells most of his shares for $400 million

0
1316

Peter Andreas Thiel is an american venture capitalist and entrepreneur. Thiel together with Max Levchin co-founded PayPal (the global payment processor).

 

He was one of the early Facebook investors. His $500.000 investment made him after 8 years close to $400 million. Analysts noted he could move/sell some of his shares when Thiel converted 9 million class B shares to class A shares. Class B shares bring far greater voting rights but can not be traded publicly so easy. Facebook is facing a difficult situation right now. The price per stock is currently at a low point and Thiel’s action could send a wrong message to the current Facebook investors.

Mark Zuckerberg acknowledges a painful stock drop while Facebook investors cash out. This situation was to be expected as early investors are now allowed to sell some of their shares. While the price per share dropped to almost half of the debut value the CEO and Facebook executive can only try to improve the morale of their employees.

Facebook employees are constantly reminded not to pay attention to the evolution of the stock price.

 

LEAVE A REPLY

Please enter your comment!
Please enter your name here