Facebook Insiders Pounce On IPO Frenzy -- Now Dumping 85 Million More Shares On Muppets
 Anyone know where we can get shares in Facebook??? |
On the contrary...
Observing the frenzy that has created more demand than one senior financial advisor has "ever seen" for an IPO, Facebook insiders have decided to dump a lot more stock on the deal.
Facebook increased the size of the IPO again this morning... to a staggering $16 billion.
Importantly, however, the company is not selling a single additional share.
The entire increase--of 85 million shares--is coming from existing shareholders.
Eric Savitz at Forbes breaks down the details:
- Tiger Global upped the number of shares it will sell to 23.4 million, from 3.4 million.
- Mail.ru upped its planned sale to 19.6 million from 11.3 million.
- Accel Partners now plans to sell 49 million shares, up from 38.2 million.
- DST Group will sell 45.7 million shares, up from 26.3 million.
- Goldman Sachs will sell 28.7 million shares, up from 13.2 million.
- Greylock will sell 7.6 million shares, up from 7 million.
- Peter Thiel will sell 16.8 million shares, up from 7.7 million.
Yes, all of these folks will still hold stock in the company.
But all of them are also taking advantage of the extraordinary demand for the IPO (from people who know nothing about investing) to unload a lot more stock than they had initially planned.
Meanwhile, Facebook's revenue growth is decelerating and big customers are suddenly talking about how ineffective Facebook advertising is.
The bottom line?
As we've said, Facebook is "muppet bait."
SEE ALSO: Facebook Is Muppet Bait
Read more: http://www.businessinsider.com/facebook-insiders-dump-stock-2012-5?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+TheMoneyGame+%28The+Money+Game%29#ixzz1v4CccvFN
Facebook Insiders Jump On IPO Frenzy -- Now Dumping 85 Million More Shares On Delirious Muppets - Business Insider
