Early Facebook Investors Want Out
A group, including employees, looks to dump shares
By Evann Gastaldo, Newser Staff
Posted Apr 28, 2011 7:45 AM CDT
The Facebook logo is displayed at a news conference in New York in this November 6, 2007 file photo.   (AP Photo/Craig Ruttle, file)

(Newser) – In a sign of increasing wariness among Facebook's earliest investors, a group of shareholders is looking to dump $1 billion worth of shares in the social networking company. The sale would value Facebook at more than $70 billion, five sources tell Reuters. The group, which includes Facebook employees, tried and failed to sell at a price that would have valued the company at $90 billion.

The move, which would be one of the largest transactions of Facebook shares thus far, indicates a concern that the site is overvalued and won't be able to keep up with its valuation. Though investors have pushed to grab pieces of the company before it goes public, Reuters talked to several investors who think it's a better idea to pass. "At the current valuation where it is, it is really hard to justify the investment," says one. "It's hard to imagine it will turn into a $270 billion company in the next few years."

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Showing 3 of 4 comments
Apr 28, 2011 6:26 PM CDT
The early guys make out like bandits - the stupid grunts scratch their heads when the shares drop to nothing. Can you sat 2001 deja vu?
Apr 28, 2011 10:39 AM CDT
Even a company that data-mines its users as ferociously as Facebook isn't worth the billions that these people are trying to get out of it.
Apr 28, 2011 10:29 AM CDT
"It's hard to imagine it will turn into a $270 billion company in the next few years." DUHHHHHHH!!!!!!!!!!!!! I guess we didn't learn anything from the tech bubbles of the 90s, or the current MySpace situation, which was in the same boat in 2004/2005:very popular, lots of users, how do we make money/generate revenue off them again? Incredible.