Skip to content
Subscriber Only

Facebook Director’s Quick $1 Billion Share Sale Lacks Precedent

Peter Thiel’s decision to sell almost all of his stake in Facebook Inc. so soon after the company’s initial public offering has few precedents in Silicon Valley, where venture capitalists typically hold shares longer.

Thiel, a Facebook director and its first outside investor, divested 72 percent of his remaining shares three months after it went public. Of the 40 biggest U.S. technology IPOs since the end of 2010, only Facebook and its underwriters let some backers sell so soon, with every other company adopting a so-called lock-up period about twice that long.