Early Facebook Investor Cashes Out Shares for $400 Million
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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No wonder these huge corporations go belly up with impulsive executives like this.
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
He'll find out just as soon as the holds are lifted.
They were nuts alright, nuts like a fox!
Sadly volcano islands tend to have very poor internet service...
Are all the normal islands taken?
-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."
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.
"invested half a million dollars in Facebook in 2004"
He cleared over a Billion so far. Not a bad ROI...
He turned $500,000 into over a billion dollars total.
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.