Earlier this week Facebook’s value slid below half of that of the company initial public offering, cutting Mark Zuckerberg’s fortune in half in the process.
On Monday Facebook dipped to its lowest price since the almost-botched IPO, which set shares at $18.75 each.
The latest drop in the company’s value comes thanks to the ending of a lock-up period which allowed some of the company’s earliest investors to divest themselves of shares in the company. The ending of the period increased the number of available shares by some 60%, further dropping the price of Facebook’s stock.
Some of Silicon Valley’s most visible investors were reportedly among those that reduced the amount of stock they held in the social network, though details of who sold off some or all of their stakes have not been made public.
Other lock-up periods are also due to end in the coming months, which may reduce the value of the company even further.
Source: The Guardian