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Early Facebook Investor Cashes Out Shares for $400 Million

By - Source: Bloomberg | B 31 comments

Peter Thiel has sold the majority of his Facebook shares. The PayPal co-founder last week sold more than 20 million shares, leaving him with just five million shares.

When Facebook finally went public, the company's IPO was in the news for weeks. The company's shares closed at just over $38 per share following its first day on the NASDAQ. However, in the days and weeks that followed, shares tumbled. The company closed out its first week on the NASDAQ at just under $32 per share, and, at time of writing, FB shares were priced just shy of $20. Now it seems one of Facebook's earliest investors is cashing out the majority of his shares.

Yesterday it emerged Peter Thiel last week sold most of his remaining Facebook shares. A filing with the Securities and Exchange Commission reveals Thiel sold 20.1 million shares last Thursday and Friday. This represents roughly 72 percent of the shares voted by Thiel. According to Bloomberg, Thiel's sale follows the expiration of restrictions on insider sales. The social network last week unlocked 271.1 million shares in what is the first of five insider-sale restrictions. The news outlet says another 1.44 billion shares will be freed up through November.

Thiel, co-founder of payments service PayPal, invested half a million dollars in Facebook in 2004, cementing himself as one of the site's earliest outside investors. According to the SEC filing, he raised $395.8 million on last week's sale. This is on top of the $640.1 million he generated in sales during Facebook's initial public offering.

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  • -7 Hide
    pacioli , August 21, 2012 5:40 PM
    Is he waiting for his remaining 5 million shares to drop to $10/share?
    No wonder these huge corporations go belly up with impulsive executives like this.
  • 7 Hide
    dextermat , August 21, 2012 5:41 PM
    The crooks, the dumb and the fugly
  • -5 Hide
    slabbo , August 21, 2012 5:48 PM
    how much did he lose?
  • 3 Hide
    gmarsack , August 21, 2012 5:51 PM
    Now I know why PayPal's service is so over priced... to pay for poor investments. Good job, way to lose millions...
  • 0 Hide
    Anonymous , August 21, 2012 5:55 PM
    that guy doesn;t own paypal anymore. he owns some company making spacehips
  • 9 Hide
    gm0n3y , August 21, 2012 5:56 PM
    Probably a wise move. I can see Facebook falling below $10 by this time next year.
  • 7 Hide
    eguichardo , August 21, 2012 5:58 PM
    @slabbo it seems he didn't lose any money. In the last paragraph it says he invested $500,000 in facebook early on. He basically sold the shares he got from that time.

    So with the 395.8 million he made last week plus the 640.1 million he made selling his shares during the IPO he basically 'won' ~1 Billion dollars out of an investment of a $500,000.

    Talk about making money out of a sick cow. lol.

    I'm inferring all of this from the article. I don't know anything about the stock market. Anybody that does know please clarify

  • 1 Hide
    Anonymous , August 21, 2012 5:58 PM
    Am I reading this wrong? He invested half a mil to make 400 mil. How is bad investment?
  • 4 Hide
    devotiecon , August 21, 2012 6:00 PM
    slabbohow much did he lose?


    He'll find out just as soon as the holds are lifted.
  • -3 Hide
    aftcomet , August 21, 2012 6:02 PM
    Remember when people were saying Facebook is the new MySpace, and others were saying those people were nuts?

    They were nuts alright, nuts like a fox!
  • 7 Hide
    jupiter optimus maximus , August 21, 2012 6:07 PM
    Sure wish i had $500,000 and become a billionaire in 8 years. Then i can buy my very own volcano island somewhere in the pacific.
  • 6 Hide
    CaedenV , August 21, 2012 6:14 PM
    jupiter optimus maximusSure wish i had $500,000 and become a billionaire in 8 years. Then i can buy my very own volcano island somewhere in the pacific.

    Sadly volcano islands tend to have very poor internet service...
  • -2 Hide
    LukeCWM , August 21, 2012 6:17 PM
    jupiter optimus maximusThen i can buy my very own volcano island somewhere in the pacific.


    Are all the normal islands taken?
  • -5 Hide
    cbfelterbush , August 21, 2012 6:36 PM
    Theil didn't loose any money at all, ha made more than a million total on his investments. He was a very early investor in facebook, he converted his initial 500k into well over a million.

    -CB
  • 3 Hide
    trapper , August 21, 2012 7:14 PM
    cbfelterbushTheil didn't loose any money at all, ha made more than a million total on his investments. He was a very early investor in facebook, he converted his initial 500k into well over a million. -CB

    He made over a billion in the end of things, not million.
    "According to the SEC filing, he raised $395.8 million on last week's sale. This is on top of the $640.1 million he generated in sales during Facebook's initial public offering."
  • -2 Hide
    kcorp2003 , August 21, 2012 7:30 PM
    pacioliIs he waiting for his remaining 5 million shares to drop to $10/share? No wonder these huge corporations go belly up with impulsive executives like this.


    big investment can't pull out all at once. their called "big boats" and they have to slowly pull out, if they pull out all at once there are consequence. one of them is that stock security will do a search to see if he has an insider tip. with "small boats" they can speed in and out.
  • 1 Hide
    freggo , August 21, 2012 7:34 PM
    slabbohow much did he lose?


    "invested half a million dollars in Facebook in 2004"

    He cleared over a Billion so far. Not a bad ROI...


  • -3 Hide
    slabbo , August 21, 2012 8:13 PM
    So he already had tons of shares in facebook and just sold them. I thought he bought shares when it IPO'd then sold them back at a lost like the average person. How in the hell did he already buy tons of shares before anyone could buy any?
  • -2 Hide
    Camikazi , August 21, 2012 8:13 PM
    cbfelterbushTheil didn't loose any money at all, ha made more than a million total on his investments. He was a very early investor in facebook, he converted his initial 500k into well over a million. -CB

    He turned $500,000 into over a billion dollars total.
  • -2 Hide
    Camikazi , August 21, 2012 8:16 PM
    slabboSo he already had tons of shares in facebook and just sold them. I thought he bought shares when it IPO'd then sold them back at a lost like the average person. How in the hell did he already buy tons of shares before anyone could buy any?

    He invested half a million in Facebook back in 2004, usually when you are an early investor you are guaranteed a certain amount of stock based on how much you gave. Seems this guy had a huge amount of stock and when the IPO went out he sold a huge amount and made 640 million and recently sold more stock that totaled up to 398 million making his total over 1 billion dollars.
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