Mark Zuckerberg has declared he will not sell shares in Facebook for at least 12 months in a fresh bid to reassure investors after his site’s disastrous stock market float.
Facebook shares have reached another new low, sinking yesterday to $17.73, more than 50% below its $38 float price in May.
Wall Street analysts have been spooked not only by Facebook’s slowing revenue growth in recent months but also by the fact that senior figures have been selling stock.
Early investor Peter Thiel got rid of most of his holding in August and other executives were able to sell after a “lock-up” period expired.
While Zuckerberg, pictured, Facebook’s chief executive, said in a regulatory filing that he won’t sell any stock, two other board members, Marc Andreessen and Donald Graham, will — but only to cover tax liabilities.
Facebook had also been planning to sell shares to cover a tax bill of more than £1 billion related to employee stock compensation but will now use cash and borrow from its credit facilities.
Zuckerberg owns about a quarter of Facebook.
