Facebook CEO Mark Zuckerberg Promises Not to Sell Stock for a Year
LONDON - Facebook CEO Mark Zuckerberg has promised not to sell stock in the social networking giant for at least a year.
It’s a move that was set to reassure investors and staff concerned about Facebook's stock decline since its IPO in May.
In a regulatory filing late Tuesday, Facebook said that Zuckerberg wouldn't sell any stock in the company for a year and that two high-profile board members, mass entrepreneur Marc Andreessen and Washington Post boss Donald Graham, have no plans to sell their personal stakes either beyond amounts needed to cover tax liabilities.
Last month, director Peter Thiel sold the majority of his Facebook stock after restrictions on insider sales expired.
Facebook also said it would buy back certain stock to keep additional shares from flooding the market.
Facebook's stock was priced at $38 in its IPO, but it fell to a new low of $17.73 on Tuesday after two analysts reduced their price targets.
In early Wednesday trading, the stock was up 3.5 percent.