The Faber Report

Flood of Facebook Shares For Sale

In recent days there has been a pronounced increase in offers of Facebook shares, according to the participants in the burgeoning world of private sale shares.


With its price having moved up to the $33-$34 range on the low-volume secondary exchanges such as Second Market, big holders of Facebook shares who have been holding out for a price in that range, have had firms such as Wedbush Securities and BTIG in the market offering their stock at those prices.

So far no big trades have taken place. But plenty of calls are being made to try and place this stock.

At present there is a five-million-share block being shopped at $35, while I'm told another four million shares have been for sale at $33.50. The sellers here are typically former insiders and consultants, although I'm also told one institution that bought into Facebook sometime back is now looking to get out.

Facebook Insiders & Behind the Hedges

Another reason for the increased activity may be due to the window for such sales getting closer to closing as Facebook itself moves closer to an initial public offering that would bring a lock up of shares. Facebook has to sign off on any new owners, but so far this year has approved all such changes.

At a price of $34, based on Facebook's 2.5 billion outstanding shares, the implied value of the company would be $84 billion.

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