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| Facebook: Peter Thiel cashes in stake for $396m | Facebook: Peter Thiel cashes in stake for $396m |
| (40 minutes later) | |
| One of Facebook's earliest backers has sold most of his stake in the social network, making a substantial profit. | One of Facebook's earliest backers has sold most of his stake in the social network, making a substantial profit. |
| Peter Thiel, a venture capitalist and Paypal co-founder, cashed in 20.1 million shares, raising $395.8m (£251m) last week, official filings state. | |
| Last week was the first time since Facebook's float that early backers could cash in their shares. | Last week was the first time since Facebook's float that early backers could cash in their shares. |
| The value of Facebook shares have fallen sharply since their debut two months ago. | The value of Facebook shares have fallen sharply since their debut two months ago. |
| Mr Thiel had already sold shares worth more than $640m during the flotation, taking his total profit to more than $1bn. | |
| Last week, Facebook released 271.1 million shares as the first so-called "lock-up" stopping early investors and employees selling their shares expired. | Last week, Facebook released 271.1 million shares as the first so-called "lock-up" stopping early investors and employees selling their shares expired. |
| Another 1.44 billion shares, owned by early investors and Facebook staff, are set to be freed up by the end of November as five additional lock-ups expire. | Another 1.44 billion shares, owned by early investors and Facebook staff, are set to be freed up by the end of November as five additional lock-ups expire. |
| Flotation woes | Flotation woes |
| Shares in the social network last night closed at $20.01, almost half the $38 that they floated at in May. | Shares in the social network last night closed at $20.01, almost half the $38 that they floated at in May. |
| Despite the shares' dramatic fall, Mr Thiel, who owned around 10% of the firm thanks to his $500,000 investment in 2004, sold his shares for an average of $19.73. | Despite the shares' dramatic fall, Mr Thiel, who owned around 10% of the firm thanks to his $500,000 investment in 2004, sold his shares for an average of $19.73. |
| Mr Thiel, who has sold 80% of his holding, according to his filing with US regulator, the Securities and Exchange Commission, still owns around 7 million shares. | Mr Thiel, who has sold 80% of his holding, according to his filing with US regulator, the Securities and Exchange Commission, still owns around 7 million shares. |
| Filings from venture capital firm Accel Partners, another early Facebook investor, indicated that it distributed over 50 million shares to its limited partners after the lock-up expired. It is not clear, however, whether the partners then sold the shares. | Filings from venture capital firm Accel Partners, another early Facebook investor, indicated that it distributed over 50 million shares to its limited partners after the lock-up expired. It is not clear, however, whether the partners then sold the shares. |
| Data from financial information firm Markit indicates that the number of investors betting on the shares to fall further - so-called short interest - in Facebook is now at record levels. | Data from financial information firm Markit indicates that the number of investors betting on the shares to fall further - so-called short interest - in Facebook is now at record levels. |
| According to Markit, 15.9% of the shares available to trade in the company are now being held by investors betting on a further share price fall. | According to Markit, 15.9% of the shares available to trade in the company are now being held by investors betting on a further share price fall. |
| "This is the highest it has been since Facebook floated," said Simon Colvin at Markit. | "This is the highest it has been since Facebook floated," said Simon Colvin at Markit. |
| "It's not just over the past couple of days since the lock-up expired, but reflects a longer term negative sentiment." | "It's not just over the past couple of days since the lock-up expired, but reflects a longer term negative sentiment." |