Facebook is facing reality and cancels secondary offering to try to stabilize stock value.
Facebook planned a secondary offering to pay for the $2 billion tax bill. Facebook has lost $50 billion in market value since the iPO. According to a new filing, Facebook is canceling the secondary offering. Facebook will now pay the taxes with cash and credit lines. Mark Zuckerberg also said to not sell any shares over the next 12 months.
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Facebook employees can also sell their vested shares a bit earlier according to the Facebook filing. Instead of November 14 they already can sell on October 29. Not sure if that will help anybody.
After the Facebook IPO I thought I would buy Facebook shares once they fall under $20. They are now at $18, but I am still not buying. Facebook appears to be far away to make significant money that would even rectify the current market value. I would not be surprised to see FB fall under $10 by year end.