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CNBC TRANSCRIPT: CNBC'S DAVID FABER: SALES OF FACEBOOK SHARES RISE

WHEN: THURSDAY, JULY 7, 2011

WHERE: CNBC'S "THE STRATEGY SESSION" AT 12PM ET

Following is the unofficial transcript of CNBC's David Faber today on "The Strategy Session" at 12pm ET. All references must be sourced to CNBC.

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DAVID FABER: WELCOME TO THE STRATEGY SESSION. I'M DAVID FABER ALL ALONE AT MY POST WHILE MY CO-HOST GARY KAMINSKY PARASAILS HIS WAY TO HAPPINESS AT AN UNDISCLOSED CARIBBEAN DESTINATION. WELL THERE IS PLENTY OF STOCKS OF COURSE CHANGING HANDS TODAY BUT IT IS SHARES OF ONE COMPANY THAT DOES NOT TRADE ON A PUBLIC EXCHANGE WHICH CONTINUE TO CAPTURE INVESTORS IMAGINATIONS. 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 BETWEEN $33 AND $34 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, WELL THEY HAVE HAD FIRMS SUCH AS WEDBUSH SECURITIES AND BTIG AND OTHERS IN THE MARKET OFFERING THEIR STOCK AT THOSE PRICES. NOW SO FAR NO BIG TRADES HAVE TAKEN PLACE BUT PLENTY OF CALLS ARE BEING MADE TO TRY AND PLACE THE STOCK AND I'VE CERTAINLY BEEN HEARING ABOUT A LOT OF PEOPLE GETTING CONTACTED. AT PRESENT THERE APPEARS TO BE A 5 MILLION SHARE BLOCK BEING SHOPPED AT $35 WHILE IM TOLD ANOTHER 4 MILLION SHARES HAVE BEEN FOR SALE AT AROUND $33.50. NOW THE SELLERS HERE TYPICALLY FORMER INSIDERS, CONSULTANTS, THINGS OF THAT NATURE, ALTHOUGH I'M ALSO TOLD ONE INSTITUTION THAT BOUGHT INTO FACEBOOK SOME TIME BACK IS NOW ALSO LOOKING TO GET OUT, OBVIOUSLY AT A SIGNIFICANT PROFIT. ANOTHER REASON FOR THE INCREASED ACTIVITY THOUGH MAY BE DUE TO THE WINDOW FOR SUCH SALES GETTING CLOSER TO CLOSING. AS FACEBOOK ITSELF MOVES CLOSER TO AN IPO, THAT WOULD BRING A LOCK-UP OF EVERYBODY'S SHARES FOR SOME TIME. NOW FACEBOOK OF COURSE HAS TO SIGN OFF ON ANY NEW OWNERS. SO FAR THOUGH THIS YEAR, I'M TOLD IT HAS APPROVED ALL SUCH CHANGES AT A PRICE OF $34 BY THE WAY BASED ON FACEBOOK'S 2 AND A HALF BILLION OUTSTANDING SHARES THE IMPLIED VALUE OF THE COMPANY ABOUT $84 BILLION.

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