Facebook Investors Looking to Unload $1B Worth of Shares: Report

Reuters reports that a group of Facebook investors, which includes Facebook employees, are looking to offload $1 billion worth of shares on the secondary market.

The news service, citing unnamed sources, says that this sale, which would value the seemingly omnipresent social media company at more than $70 billion, might legally represent one of the largest transactions of Facebook shares thus far and “points to an increasing wariness among early-stage shareholders who fear Facebook’s [expansion] cannot keep pace with its market valuation.”

Reuters also says the group tried and failed to sell off the shares at a higher price that would have valued the company at $90 billion. That figure would have made Facebook worth more than Time Warner Inc (TWX) and News Corp (NWSA) combined.

[From Reuters]: “At the current valuation where it is, it is really hard to justify the investment,” said Sumeet Jain, partner at venture capital firm CMEA Capital, who has examined Facebook deals recently and has taken a pass. “It’s hard to imagine it will turn into a $270 billion company in the next few years.”

The current deal is awaiting approval from the Facebook brass, including CEO Mark Zuckerberg and CFO David Ebersman.

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About Ron Haruni 1067 Articles
Ron Haruni is the Co-Founder & Editor in Chief of Wall Street Pit.

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