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
- Top 5 Richest Tennis Athletes
- Angelina Jolie & Brad Pitt Heads to Malta For New Movie After A Whirlwind French Wedding [PHOTOS]
- 2014 US Open Update (Day 4 - Men's Singles): Murray, Djokovic, Raonic and Isner Advance to 3rd Round [PHOTOS]
- Kate Middleton’s Mom Accused Of Being A Social Climber, Prince George Not Seen By Relatives
Join the Conversation
- Windows Phone 8.1, Nokia Lumia Cyan Update: All Supported Devices In Various Regions As Of August
- 'No Man's Sky' For PlayStation 4: The Sun Will Burn Out But The Game Will Go On (Watch Trailer)
- Sony Android 4.4.4 KitKat Update Guide For Xperia Z Devices As Of August 2014
- Sony Xperia M2 Aqua Buyer's Guide: Reasons Why Upgrade From Xperia V Or Xperia ZR
- Xbox One VS. PS4 At PAX Prime 2014:18 Games On Sale And A Lineup Of Xbox Games Revealed
- Apple iWatch is iPhone 6 Accessory on Sept 19 Release Date: 6 Confirmed Specs & Features
- iPhone 6 Release Date Update: 4.7-Inch Model Scores 65.8% In Screen-To-Size Ratio; A Surprise Entry Scales Top Spot [List Attached]
- Canada Vs Russia War Erupts Via Twitter on Russia-Not Russia Maps
- Product Recall Alert: Hewlett-Packard Pulls Out 6M Power Cords from US, Canada Over Fire Hazard Concerns, Australia Also Affected
- ISIS Wants $6.6M and Release of Aafia Siddiqui in Exchange of Head of Female US Humanitarian Aid Worker, 1st American Fighting for Jihadis Dead
- Ukraine Ceasefire Looks Remote As Putin Talks Tough At Meeting With Poroshenko
- Windows 9 To Include Interactive Live Tiles and Notification Center in Metro 2.0