Mother of God…no really, she has to be the Mother of God. My case of the Mondays is officially gone!
EliteDaily: In what seemed like a good idea at the time, the owners of Instagram took 23 million shares of Facebook valued at $700 million as part of their $1 billion acquisition. This has certainly backfired, as the shares, then valued around $30/share, are now hovering around the $20 mark. This means the owners have lost approximately $300 million on the stock. Ouch. Founders Kevin Systrom and Mike Krieger are far from hurting, as they also took $300 million in cash in the deal. The deal went down in April, and Facebook released its IPO on May 18th, when the stock was valued at $38/share. The shares reached $42/share on the day of the IPO, which had the deal valued at $1.266 billion at that point, but the shares finished flat and have declined ever since.
As Facebook stock continues to plummet, it looks like people are jumping ship. This week, Facebook Board of Directors, Peter Thiel, sold off $400 million worth of his stock. Then, Facebook co-founder Dustin Moskovitz sold off $9 million of his shares. THEN, we found out that the Instagram founders who invested in Facebook have lost $400 million already in their stock. I know they still have $300 million in cash but $300 million just isn’t the same as $1 billion. Isn’t this the point where guys start jumping off the roof of their penthouse suites or swallowing the end of a shotgun?
Here’s what I recommend for anyone still interested in buying Facebook stock. You pay me money, I’ll slap you in the face, you go home and call it a day!