The Securities and Exchange Commission announced Wednesday the punishment for Nasdaq’s mishandling of Facebook’s initial public offering: a record $10 million fine, the largest penalty paid to the SEC by an exchange. Nasdaq came under fire for several mishaps, such as failing to send trade confirmations to investors.
The big names at the top of Facebook’s corporate ladder are starting to cash in their shares. TechCrunch reported Friday that Chief Accounting Officer David Spillane sold 256,000 of his 416,000 shares. Spillane made a profit of roughly $5.376 million. Chief Operating Officer Sheryl Sandberg and General Counsel Theodore Ullyot also sold some of his Facebook shares.
Several top Facebook executives, including Chief Operating Officer Sheryl Sandberg, are sitting on hundreds of millions of dollars worth of their company’s stock, but they have no plans to sell. As 234 million shares of Facebook stock became unlocked and eligible to sell Monday, Business Insider discovered just how much key Facebook executives are sitting on.
On Monday, rank-and-file Facebook employees will be able to sell their stock, which officially came to fruition Thursday. Collectively, the roughly 225 million shares are worth about $5.2 billion, based on Wednesday’s closing price of $23.23 apiece. But it’s not just Facebook employees who are excited for a potential sell-off — the federal and California governments stand to profit from this, as well.
The stock value of Google plummeted after its preliminary third-quarter report showed that income dipped 20 percent while costs rose. This news sent a ripple effect throughout other Web giants on Wall Street, as the share prices of Facebook and Yahoo fell Thursday, as well.
Before several key investors were dumping their Facebook stock, one Florida man made millions of dollars off his shares. Too bad they didn’t really exist. John Mattera, 50, pleaded guilty Tuesday to charges of fraud and conspiracy after running an $11 million scam involving nonexistent shares of Facebook and Groupon.
Facebook is the world’s most social platform, but the man who started it all hasn’t spoken much recently. At TechCrunch’s Disrupt SF event in San Francisco Tuesday, Facebook CEO and Co-Founder Mark Zuckerberg — dressed in a grey shirt, jeans, and tennis shoes — kept a happy tone as he discussed his company’s focus on mobile, the brain drain, its initial public offering, search, and his vision for the future. This was Zuckerberg’s first public address since Facebook’s IPO in May.
Early major investor Peter Thiel has dumped much of his Facebook stock, as have Co-Founder Dustin Moskovitz, Accel Partners, and Microsoft. Co-Founder and CEO Mark Zuckerberg has the ability to unload some of his roughly 500 million shares in October, but according to recent Securities and Exchange Commission filings, he won’t do that for at least 12 months.
The bad news related to Facebook stock continues to roll in, with analysts for two of the social network’s largest underwriters, Morgan Stanley and J.P. Morgan, lowering their price targets, according to reports.