Seeking Alpha

Facebook's (FB) institutional investors are taking advantage of the boosting of the company's...

Facebook's (FB) institutional investors are taking advantage of the boosting of the company's IPO offering size and price range to cash out. According to its latest S-1, VC backer Accel Partners will sell up to 28% of its stake, while Peter Thiel, Goldman Sachs, and Tiger Global each plan to sell up to 50%. Facebook's IPO insider selling is much higher than that seen for LinkedIn, Groupon, and Zynga's offerings, and is arguably a warning for investors tempted to chase the stock after it opens.
Comments (5)
  • Husky Financial
    , contributor
    Comments (212) | Send Message
     
    I have a somewhat different view.. I think FB and the underwriters were well aware that 10% of float was NOT going to cut it. It would create an absolute shit show of a spectacle if they did not increase the float and prevent the stock from going up 50% in a day only to fall 30% over the next couple of weeks. By increasing the offering they are reducing the initial volatility while simultaneously allowing those early investors to cash out at what looks to be a very fair valuation.
    16 May 2012, 11:05 AM Reply Like
  • Josh Krause
    , contributor
    Comments (1361) | Send Message
     
    420M shares being sold

     

    2.1B total shares outstanding according to the S-1.

     

    420/2100 = 20% of the shares being sold.

     

    Anyone expecting a LNKD spike on the first day might not be getting the return they are expecting.
    16 May 2012, 11:14 AM Reply Like
  • surfnspy
    , contributor
    Comments (415) | Send Message
     
    "shit show"!!!!! I just sprayed coffee on my desk! LMAO!
    16 May 2012, 11:21 AM Reply Like
  • bull_market_somewhere
    , contributor
    Comments (115) | Send Message
     
    good point. in regard to all the insider selling, accel and other VCs/Angels have been waiting to unwind this position for the better part of a decade; of course there is a lot of insider selling.
    16 May 2012, 11:07 AM Reply Like
  • jstratt
    , contributor
    Comments (2605) | Send Message
     
    It is very noble of the insiders to step up their selling efforts. After a great pump you need a great dump!

     

    They have conducted a worldwide troll for suckers!
    16 May 2012, 09:39 PM Reply Like
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