Facebook’s first outside investor, Peter Thiel, dumped 20.1 million shares of its stock after the social network’s stock lockout ended Thursday.(David Paul Morris/Bloomberg)
The first lockup of Facebook shares since its May IPO ended last Thursday — and its earliest investor, who also sits on its board, didn’t waste any time cashing out, according to an SEC filing.
Venture capitalist and hedge fund manager Peter Thiel, the social network’s first outside investor, dumped 20.1 million Facebook shares Thursday and Friday, according to the form filed Monday with the U.S. Securities and Exchange Commission. That’s the bulk of his nearly 28 million shares, and comes on top of another 16 million shares he sold during the IPO, say our friends at Bloomberg News.
Thiel, who is on Facebook’s board of directors, converted many Class B shares into Class A shares last week, prompting speculation that he might sell them. Class A shares are easier to sell but hold fewer voting rights.
The Menlo Park company’s stock has fallen dramatically since the May 17 IPO, with current prices around $20 a share, though the filing notes that the reported sales were arranged just after the IPO. Thiel’s initial 2004 investment in Facebook was $500,000.