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Facebook director dumps shares

by on21 August 2012

Has been reading Fudzilla

It seems that one Facebook director has been reading Fudzilla and heard how the company share price is going to go lower.

Peter Thiel sold most of his stake in the operator of the world’s largest social-networking website, and collected a billion dollars in cash. Thiel, one of Facebook’s earliest investors, sold about 20.1 million shares in the company on Aug. 16 and Aug. 17, raising $395.8 million. He had previously sold $640.1 million in sales during the initial public offering.

To earn his billion dollars he invested $500,000 in 2004 so it took him eight years to earn a billion on the relatively modest investment. He is one of the few that have made cash from Facebook. Later investers saw the shares lose half their value.

We have been warning that shares will continue to fall in value, and would probably settle at $13, which is a much more sane price than the $20 it is at the moment and the $40+ they traded at in their IPO. Thiel still holds more than 5 million shares.

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