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Accel to sell around $1 billion in Facebook stock (most of their stock)

21 pointsby hornbakeralmost 13 years ago

2 comments

jgrahamcalmost 13 years ago
Or not:<p>"Update: This is a bit different than we thought. As it turns out, the shares Accel intends to sell are a majority of what it is now eligible to sell. Its total holdings exceeded 150 million shares. TNW apologizes for the confusion."
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startupfounderalmost 13 years ago
Accel is not in the business of publicly traded stock, they are in the business of high risk high return private investment. They invested $12.7 million in Facebook and selling it for $1 Billion. They have already made their money and want to return it to their LPs, take their 20% commission of $200 million and raise another fund to do it all over again. Even if the stock went to $100 per share the marginal return on their investment vs. them spending their time investing in the next Facebook. By my calculation they have already netted $200,254,000 on this deal +/-.<p>EDIT: They will Net the $200m from this deal and then another ~$400m from future sales.
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