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.
Zuckerberg, who has seen his own personal fortune drop along with Facebook’s stock value, claimed in the SEC 8-K report (a general notice to shareholders) that he doesn’t plan to sell anything in the near future. Two Facebook directors, Marc Andreessen and Donald Graham, feel the same way, the filing shows:
We understand that two of our non-employee directors, Marc Andreessen and Donald Graham, intend to satisfy taxes incurred in connection with the vesting or settlement of their RSU awards by effecting sales of our common stock. Any such sales will be conducted through Rule 10b5-1 plans adopted in accordance with our securities trading policies. Other than such tax-related sales, Mr. Andreessen and Mr. Graham have no present intention to sell any shares of our common stock held by them personally.
As of the date of this report, Mark Zuckerberg has not adopted a Rule 10b5-1 plan and has informed us that he has no intention to conduct any sale transactions in our securities for at least 12 months. Mr. Zuckerberg currently holds in aggregate approximately 444 million shares of class-B common stock, as well as 60 million shares of class-B common stock issuable upon the exercise of an option.
The report also notes that Facebook will not follow up its initial public offering with a second offering, which would just flood the market with too many shares of the company.
Facebook’s stock rebounded a bit. It closed Tuesday at $17.73 per share, but as of Wednesday morning, it was back over $18. Still, this is less than one-half of the $38 price at which Facebook opened.
Readers: Should Zuckerberg sell some of his stock, or is he smart for waiting it out?