The world’s youngest billionaire is distancing himself ever so slightly from the social networking giant he helped to create. Forms filed with the SEC on Wednesday show that Facebook cofounder Dustin Moskovitz sold 450,000 shares since last Friday –less than 1% of his stake in Facebook.
A financial filing with the Securities and Exchange Commission shows Moskovitz sold three tranches of shares from his personal trust between last Friday and Tuesday for an average of $19.61 a share, pocketing about $7.5 million dollars after taxes. He still owns just over 133.2 million shares, which represents about 6.2% of shares outstanding in the Menlo Park, Calif.-based company.
Moskovitz’s sale, though small, represents a growing trend of early Facebook employees and investors who have sold in the last week. On Monday, the company’s first institutional investor, Peter Thiel, and his venture capital firm Founders Fund revealed through financial filings that they had sold over 20.1 million Facebook shares since last Thursday. Venture firms Accel Partners and Greylock Partners also distributed Facebook shares to its investors, giving them the option to sell their shares, as my colleague Eric Savitz explains here.
The spate of share sales came after the first of a series lockup agreements between early investors and the social networking company expired last Thursday, giving some shareholders the opportunity to offload stock onto the open market. In the months ahead, over 1 billion shares will become freed from lockup agreements, worrying some investors that Facebook, down to nearly half of its initial public offering price of $38, may continue to fall as those with currently locked shares seek to cash in on their positions.
Moskovitz, worth $3.5 billion as of FORBES 2012 World’s Billionaires list in March, is the first of Facebook’s five cofounders to reveal that he has sold shares since the company’s May IPO. Moskovitz’ net worth has fallen to a recent $2.7 billion as Facebook shares have dropped in value. During the IPO, Moskovitz did not sell any shares; filings show that he intended to sell 7.5 million shares in an over-allotment option, proverbially known as the greenshoe. The greenshoe gives bankers the option to sell more shares during the IPO if an offering is oversubscribed. In Facebook’s case, the greenshoe was not exercised.
Before selling last week, Moskovitz converted 7.5 million super-voting Class B shares into Class A shares so that he could sell on the Nasdaq. He still holds 7.05 million Class A shares, which he can sell at a later date.
Moskovitz, one of Zuckerberg’s roommates at Harvard, left Facebook in 2008 to start Asana, a collaboration and messaging software company.
A spokesperson for Facebook declined to comment.
Facebook closed up 1.46% Wednesday at $19.44 a share.