Facebook Director Andreessen’s Firm Sells Third of Shares

Facebook Inc. (FB) Director Marc Andreessen’s venture-capital firm sold a third of its holdings in the world’s biggest social-networking service after the stock price reached a record last month.

Andreessen Horowitz sold 2.28 million shares on Nov. 6, according to a filing with the U.S. Securities and Exchange Commission yesterday. The shares were sold at about $49 to $50 apiece, making the divestment worth more than $111 million, the data show. The firm still holds 4.57 million shares.

Facebook reached a record valuation amid growing optimism about the company’s prospects for making money off its more than 1 billion users, especially those logging on via mobile devices. The company reported a 60 percent surge in revenue in the latest quarter to $2.02 billion, exceeding analysts’ average projection and adding fuel to a share rally that has pushed the stock up 79 percent so far this year.

“The investment and the return fully satisfies our venture thesis,” Margit Wennmachers, a spokeswoman for Andreessen Horowitz, said. “We’re obviously pleased with that.”

Peter Thiel, an early investor in Facebook and a board member, sold more than $1 billion worth of the company’s shares in the IPO and after the end of the first lockup period.

Photographer: David Paul Morris/Bloomberg

Andreessen Horowitz co-Founder, and Facebook Inc. Director, Marc Andreessen listens during the Minds + Machines 2012: Unleashing the Industrial Internet conference in San Francisco, on Nov. 29, 2012. Close

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Photographer: David Paul Morris/Bloomberg

Andreessen Horowitz co-Founder, and Facebook Inc. Director, Marc Andreessen listens during the Minds + Machines 2012: Unleashing the Industrial Internet conference in San Francisco, on Nov. 29, 2012.

Facebook, based in Menlo Park, California, declined less than 1 percent to $47.53 at yesterday’s close in New York.

Bloomberg LP, the parent of Bloomberg News, is an investor in Andreessen Horowitz.

To contact the reporter on this story: Brian Womack in San Francisco at bwomack1@bloomberg.net

To contact the editor responsible for this story: Pui-Wing Tam at ptam13@bloomberg.net

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