Microsoft offloaded 20 percent of its Facebook shares

Microsoft is probably used to forklifting its money by now.

A new report reveals Microsoft sold 20 percent of its shares in Facebook when the social media company went public earlier this year. By selling 20 percent of its shares, Microsoft made $250 million, or almost $10 million more than it originally invested in the social networking giant in 2007 for all of its shares.

According to a report by The Associated Press, Microsoft sold 6.6 million of its shares in Facebook, which was 20 percent of its total amount of Facebook shares. Insideris reports that Microsoft made more than $249 million from the sale. Because Microsoft sold its shares when Facebook first went public, its shares were sold at the IPO price of $37.75 – a substantial amount more than the stock's current $19.20 price per share. Microsoft had originally invested $240 million in Facebook in 2007 for a 1.6 percent stake in the company.

Facebook's stock recently hit a new low as the lockup period the company imposed on early investors was lifted. Lockup periods are typically imposed to prevent early investors from flooding the market with excess stock, which can lower a company's price per share.

Thanks for the tip, FoxieFoxie!

Via: Insideris
Source: The Washington Post | Forklift of dollars via Shutterstock

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16 Comments

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It is close to illegal, because MS used privileged information to sell their shares. They knew about the flop.

Brony said,
It is close to illegal, because MS used privileged information to sell their shares. They knew about the flop.

You didn't need privileged information to know that it would flop.

Brony said,
It is close to illegal, because MS used privileged information to sell their shares. They knew about the flop.

Source?

While I don't deny it certainly looks like that, there needs to be some proof. The upcoming class action lawsuit should sort this out!

Raa said,

Source?

While I don't deny it certainly looks like that, there needs to be some proof. The upcoming class action lawsuit should sort this out!

Before the IPO, Wall Street talked to Facebook and said the initial price of the share is too high. So, everybody knows about it, so the question is, who purchased the shares and why?.

Made their profit, and still have a lot of shares to sell off if they so wish. Very smart business from Microsoft.

capr said,
It's funny how going public is gonna ruin the company.

Facebook already made the money they wanted with the IPO, this doesn't really affect them. The people who are getting screwed now are the one's who bought the inflated shares at twice the price.

I'm guessing Microsoft wants to at least get the money back that they invent, so that if Facebook falls to nothing like most online company, they would not lose anything.

Lol they made their money back + 10Mil...and they still have the other 80% left that will hedge against facebook's volatility.

If they decides to sell of the rest right now at the low price of $19.20, they'll still rack in $506,880,000 Mil.

In other word, HUGE win for Ballmer. And they say Ballmer is dull--he knew what he was mucking with.