Bloomberg News

Facebook Director Andreessen’s Firm Sells Third of Its Stake

November 09, 2013

Andreessen Horowitz Co-Founder Marc Andreessen

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. Photographer: David Paul Morris/Bloomberg

Facebook Inc. (FB:US) 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 (FB:US) 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 (FB:US) 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 (FB:US) 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.

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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Companies Mentioned

  • FB
    (Facebook Inc)
    • $74.63 USD
    • -1.33
    • -1.78%
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