- August 20, 2012
- Posted by: Ted Bullen
- Category: IPO, News, Social Networking, Stock Market
On August 16, 2012, upon the expiration of a lock-up agreement which covered about 271 million shares held by early employees and investors, Facebook shares dropped below $20 per share, or almost half of the IPO price of $38 per share. Today, it was announced that Facebook’s first institutional investor, Peter Thiel, exited his position in Facebook. Thiel and his venture capital firm liquidated 20.1 million shares on Thursday and Friday. Thiel’s sale was, purportedly, planned since the IPO. Nevertheless, Facebook is now the worst performing stock over the past three months. Another stock lock-up ends at the end of the year. If the company doesn’t turn things around, Facebook is headed for a face-plant.