Thiel Dumps Most Of Facebook Stake

Aug 21 2012 | 10:20am ET

Clarium Capital Management founder Peter Thiel wasted no time in selling off most of his remaining Facebook Inc. stake as soon as he was able.

Thiel, who founded PayPal and who was an early investor in Facebook, sold more than 20 million shares of the social-networking site, whose stock price has plummeted since its May 17 initial public offering. But Thiel still did very well for himself, turning a $500,000 investment in 2004 (and part of a $25 million round of fundraising two years later) into more than $1 billion.

Facebook insiders—Thiel serves on its board of directors—have had to watch the value of their shares fall by almost half. The first set of restrictions on sales by insiders expired last week.

Thiel was ready for it: He converted nine million Class B shares into more liquid Class A shares last week to prepare for the sale. He sold those shares and 11 million more for between $19.27 and $20.69 per share, a total of $395.8 million. Thiel sold $640 million worth of shares in Facebook's IPO.

Thiel still owns more than five million Facebook shares.


In Depth

GSAM's Papagiannis: Liquid Alternatives For The Long Run

Apr 21 2017 | 8:44pm ET

Interest in liquid alternatives cooled a bit last year amid a broad shift in investor...

Lifestyle

Aston Martin Returns To Debt Market As DB11 Drives Turnaround

Mar 31 2017 | 5:21pm ET

James Bond’s preferred carmaker is returning to the public debt markets for the...

Guest Contributor

Debunking Conventional Investment Wisdom (Part II)

Apr 17 2017 | 5:56pm ET

The alternative investment industry is currently replete with buzzwords around data...