Microsoft is probably used to forklifting its money by now.
A new report reveals Microsoft sold 20 percent of its shares in Facebook when the social media company went public earlier this year. By selling 20 percent of its shares, Microsoft made $250 million, or almost $10 million more than it originally invested in the social networking giant in 2007 for all of its shares.
According to a report by The Associated Press, Microsoft sold 6.6 million of its shares in Facebook, which was 20 percent of its total amount of Facebook shares. Insideris reports that Microsoft made more than $249 million from the sale. Because Microsoft sold its shares when Facebook first went public, its shares were sold at the IPO price of $37.75 – a substantial amount more than the stock"s current $19.20 price per share. Microsoft had originally invested $240 million in Facebook in 2007 for a 1.6 percent stake in the company.
Facebook"s stock recently hit a new low as the lockup period the company imposed on early investors was lifted. Lockup periods are typically imposed to prevent early investors from flooding the market with excess stock, which can lower a company"s price per share.
Thanks for the tip, FoxieFoxie!
Via: Insideris
Source: The Washington Post | Forklift of dollars via Shutterstock