Facebook Shares Resume Fall After Andreessen Horowitz Sells Majority Of Stake
By David Zielenziger | November 16, 2012 7:34 AM EST
Shares of Facebook (Nasdaq: FB) resumed their fall after director and early investor Marc Andreessen cashed out a big position.
In late Thursday trading, Facebook fell 37 cents to $21.99 after Wednesday's unexpected surge of 13 percent despite the availabilty of 800 million new shares of the Menlo Park, Calif., company eligible for sale by employees who'd been barred from selling since the May initial public offering.
On Tuesday, before the big run-up, the Andreessen Horowitz venture capital firm sold 4.6 million shares of Facebook, while it retained an additional 3.9 millon shares.
Principal Marc Andreessen, 41, is a director of Facebook as well as of Hewlett-Packard Co. (NYSE: HPQ), the No. 1 computer company. He's friendly with co-founder Mark Zuckerberg, 28, and was among his early venture investors.
Andreessen was the inventor of the Mosaic web browser while still a student at the University of Illinois. That was the basis of Netscape Communications Corp., one of the pioneers of the first Internet boom.
His Menlo Park, Calif., investment firm, which has taken investments from New York Mayor Michael Bloomberg, was also restricted by so-called “lockup” provisions from selling until this week.
Other firms, such as Accel Partners, sold part of their holdings in the IPO and several early investors, including Peter Thiel and Dustin Moskovitz sold their entire investments earlier this year.
Zuckerberg, who cashed out about $3 billion worth of Facebook shares in the IPO, has promised not to sell more until sometime next year.
Facebook's market capitalization is now about $48 billion, or 42 percent below its value in the IPO.
To contact the editor, e-mail:
Most Popular Slideshows
- Taylor Swift Named Forbes' Second Highest Paid Country Musician [PHOTOS]
- Forever Lost: Indescribable Anguish for Malaysia Airlines MH17 Families, Remains of Some Victims May Never Be Found (PHOTOS)
- Global Aviation Accidents: UN to Form Safety Task Force, Gov'ts Should Share Intelligence Info to Avert Future Incidents on Flying Over Warzones (PHOTOS)
- PageSix: Beyonce & Jay Z Union is Not About Love, All About Business & the Brand
Join the Conversation
- Android 4.4.3 and 4.4.4 KitKat Still Delayed for Samsung Galaxy S3, Galaxy Note 2, Galaxy S4 and Galaxy Note 3
- PS4 News: 2 Possible Sets of PS Plus Games for August 2014 Leaked and Additional Features for PS4
- GTA V Online: Money-Glitch Ban Goes After Cheaters as a New Zombie DLC Leak is Spotted
- HTC One Mini 2 vs. LG G2 Specs and Price Comparison in Australia
- Xbox One News: EA Subscription Effective for Microsoft’s Next-gen Console; Forza Horizon 2 Announces 16 More Cars
- Samsung Galaxy S5 Alpha Leaks Online: Release Date, Five Features to Wait for New Smart Phone
- Photos of Motorola Moto X+1 Prototype and Specs Leak Online, Release Date, Four Fresh Features Revealed
- Sony Xperia Z3: Release Date, Five Features to Expect from New Android Smart Phone
- Top Surprising Features Of iOS 8
- Top 4 Reasons Why iPhone 6 Will Hit Big Soon After its Sept 2014 Release Date
- Freshly Leaked Apple iPad Air 2 Cases Confirm Touch ID Sensor; Release Date, Limited Specs and Price Listed
- 5 Food Scandals That Shocked The World