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 soon became an essential extension to our internal online marketing team."

~ Screwfix Bathrooms ~

  Screwfix Bathrooms

"We are extremely happy with the online visibility achieved through SEO and PPC."

~ Pure Student Living ~

  Pure Student Living

"theEword has consistently produced great results; very happy with the service."

~ Parasol ~

  Parasol

"theEword team has excelled itself in terms of client service, campaign measurement and responsiveness."

~ Linder Myers ~

  Linder Myers

View more of our testimonials »

james_riches_swap

Schmidt defiant on Google privacy efforts Monday 15th of December, 2014by James Riches Google chairman Eric Schmidt has outlined how the company responded in the wake of Edward Snowden’s shock revelations last year, including increased security and privacy measures.

More on this story »

Bing search results removed from Facebook Tuesday 16th of December, 2014by Andy Williams Facebook has completely removed Bing results from its internal search engine, instead focusing heavily on the improvement of their own search capabilities.

More on this story »

Google announces trending topics and videos feature Wednesday 17th of December, 2014by Martin Lindley The new feature is available in over 50 languages and allows users to deeper explore trending topics: to do so the user clicks on a trend of interest to them.

More on this story »
theEword - 12 hours ago

Marketers: if you could send a message to yourself back in time to the start of 2014, what would it say? http://t.co/9kqlzuN11W

Reply Retweet Favourite
theEword - 19 hours ago

Google announces trending topics and video feature: http://t.co/GYYJRatwKR

Reply Retweet Favourite
theEword - 19 hours ago

What is your Christmas tradition? http://t.co/RWBAiuycS9

Reply Retweet Favourite
theEword - 2 days ago

Slowly but surely presents are making their way under theEword tree! What's the best or worst Secret Santa you have received?

Reply Retweet Favourite
theEword - 3 days ago

What do Flappy Bird and Conchita Wurst have in common? http://t.co/IaBIMzscpX

Reply Retweet Favourite

theEweekly Wrap: 5 Dec Friday 5th of December, 2014by Andy Williams This Week: Google to develop child-friendly apps, North Korea denies hacking Sony Pictures and Gangnam Style manages to break Youtube’s view counter.

More on this story »

theEweekly Wrap: 12 Dec Friday 12th of December, 2014by Martin Lindley This week: Google Penguin gets live updates, Microsoft accepts bitcoin, and old iPod sells for thousands.

More on this story »
daniel_nolan_swap

Google Zeitgeist 2014 list reveals the world's search intere... Tuesday 16th of December, 2014by Daniel Nolan See the search terms the world has been looking for this year with Google's 2014 Trends.

More on this story »

Who loves theEword

Who loves theEword Who loves theEword