Interpublic exits Facebook
November 21, 2012 3:35 AM EST
Interpublic Group of Cos said it sold its remaining investment in Facebook Inc for $95 million in cash.
Interpublic said it expects to record a pre-tax gain of $94 million. It had recorded a pre-tax gain of $132.2 million for the third quarter of last year from the sale of half of its 0.4 percent stake in Facebook.
Interpublic paid less than $5 million for the stake in 2006.
Shares of Facebook, which debuted with a market value of more than $100 billion in May, have lost nearly half their value since then on concerns about money-making prospects.
"We decided to sell our remaining shares in Facebook as our investment was no longer strategic in nature," Chief Executive Michael Roth said in a statement.
Interpublic also authorized an increase in its existing share repurchase program to $400 million from $300 million. The company repurchased shares worth $151 million, as of September 30.
Shares of the company were up 1 percent at $10 on the New York Stock Exchange on Tuesday.
Facebook shares were marginally up at $23.00 on the Nasdaq.
(Reporting by Sruthi Ramakrishnan in Bangalore; Editing by Joyjeet Das)
Join the Conversation
- Tourre on stand says email in SEC case 'not accurate'
- Syrian authorities blocking access to needy in Homs - Red Cross
- Faith in European Union at low ebb, EU poll says
- Former UBS banker gets 18 months, $1 million fine, for muni bid-rigging scheme
- U.S. judge halts challenges to Detroit's bankruptcy bid
- Russia's New Tactical Nuclear Weapons Program Growing Confident Against the US: Talks of World War III
- Apple and Google Engage in Thermonuclear War, New Google Translate Chat App in the Works
- Chris Algieri’s Battered Face Trends On Social Media
- Walmart Offers the Best 2014 Black Friday Deals on iPhone 6, iPad Ai2 & Other Gadgets – Reports
- Kobani ISIS Fighter Sends Out Desperate Message For Prayers And Support: Euphoria Turns Into Desperation As Kurds Advance
- Highest Paid NBA Players 2014: NBA Stars Who Earn More Than LeBron James
- Update Samsung Galaxy S5 to Android 4.4.4 KitKat, Sprint Release and Installation