RSS LinkedIn Google Plus

Call us: 0800 014 9884

Zuckerberg vows not to sell shares for one year

Zuckerberg_vows_not_to_sell_shares_for_one_year_11801

Facebook’s new low

Facebook founder Mark Zuckerberg has vowed not to sell his shares in the company for at least twelve months, in a bid to restore investor confidence.

The announcement came as shares in the social network hit an all-time low of $17.55 (£11.08) yesterday. It marks a drop of over 50 per cent since the IPO in May 2012, when shares hit the market at $38. As a result, analysts have wiped around $50bn off the estimated value of Facebook in under six months – which according to Bloomberg, makes it the worst performing IPO since records began.

One of the factors that has contributed to the slump is the expiration of lock-up periods that prevented employees and insiders from selling their stock. Since August 16, board member Peter Thiel has unloaded $400m of shares, while Dustin Moskovitz – Facebook’s co-founder – sold shares amounting to $34.5m, just over 1 per cent of his stake. Future lock-up expirations will free up over a billion more shares that could cause stock to drop even lower.

Paying taxes

The CEO has around 444 million shares in the company, so his pledge to keep hold of them is a strong statement; shares rose 2 per cent to $17.73 following Zuckerberg’s announcement. However, Facebook has also been levied with a hefty $2bn tax bill; instead of selling shares to cover this, Reuters reported the company plans to use existing cash and credit.

Natalie Booth, online marketing manager at theEword, said: “The numbers must be worrying for Facebook investors, so Zuckerberg’s decision to keep hold of his shares may be encouraging. However, to truly reassure investors and reverse the decline, action will need to be taken over the coming months to further monetise Facebook membership and user engagement.”

Written by rachel_hand_swapRachel Hand

Testimonials

"theEword team have been crucial to us achieving record growth in the last financial year"

~ defibshop ~

  defibshop

"theEword understand our market dynamics"

~ Lees Solicitors ~

  Lees Solicitors

"theEword are scrupulously honest and hardworking"

~ Britannia Living ~

  Britannia Living

"theEword consistently go above and beyond"

~ Merlin Entertainments ~

  Merlin Entertainments

View more of our testimonials »

Bing implements one small change and one big change Tuesday 14th of April, 2015by Dan Moores Over the past week, Bing has implemented two changes. One appears to be directly influenced by Google, while the other demonstrates independent thinking and creativity.

More on this story »

April UK search market share: Bing revival stutters again Tuesday 5th of May, 2015by James Riches Bing’s mini-revival in the UK search market appears to have stalled, with data from StatCounter Global Stats showing a second consecutive monthly loss.

More on this story »

May UK search market share: Small gain for Google Monday 1st of June, 2015by James Riches Google’s dominance of the UK search market continues, as webmasters focus on mobile and the public search for Election and Eurovision results.

More on this story »
Twitter
theEword - 8 hours ago

Feel like you should know more about #digital? Book a place at our Eworkshop in September > http://t.co/APGqNn68zD http://t.co/JsCIkm6Wbm

Twitter
theEword - 11 hours ago

20% of people think that LinkedIn is the best channel for marketing a business. Do you agree?> http://t.co/OWKybrfFoz http://t.co/U9L0I8oVFH

Twitter
theEword - 15 hours ago

Want to write great digital #content? Read our latest ebook to learn some tips > http://t.co/xiADQ4gOQq http://t.co/QUiIgCGG1H

Twitter
theEword - 1 day ago

Looks tasty! #lightafireJo http://t.co/XMUEEMnrvH

Twitter
theEword - 1 day ago

Is anyone hungry? lightafireJo http://t.co/zRBlZ7STLM

Why it’s time to stop obsessing over search engine rankings Friday 12th of June, 2015by Dan Moores In this blog, we look at why the time is well past for some business owners and directors to let go of their obsession with rankings, and focus more on metrics like traffic and conversions.

More on this story »

What retailers need to know about conversion rate optimisation Monday 15th of June, 2015by Andy Williams Conversion rate optimisation (CRO) is the process increasing the number of visitors to a website into conversions. See why it's vital for retailers to use it.

More on this story »

What's the best social channel for your retail brand? Wednesday 24th of June, 2015by Dan Moores You already know how vital social media presence is. Here's how you can make the most of three very popular platforms - and not just from a brand-amplification standpoint.

More on this story »

Who loves theEword

Who loves theEword Who loves theEword