Facebook to Let Employees Sell Restricted Stock at $4B Valuation

August 4th, 2008

Eric Eldon at VentureBeat is reporting this morning that Facebook has implemented a new policy regarding employees’ sale of restricted company stock: it is going to allow employees to sell up to 20% of their vested stock at a $4 billion valuation. Some employees are already asking for financial advice.

While the mechanics of the employee sales are not known - there have been rumors of private sales of employee stock for months - the total volume of company stock that’s likely to be eligible for sale is probably around $20 to $40 million. Facebook would probably like to keep the total number of shareholders under control, so it will be interesting to see if the company aggregates employee stock sales into a smaller number of transactions.

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Posted by Justin Smith

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4 Responses to “Facebook to Let Employees Sell Restricted Stock at $4B Valuation”

Nick Stamoulis Says:
August 4th, 2008 at 5:34 pm
Good for the employees! I’d be pretty psyched if I were them.
Svetlana Gladkova Says:
August 5th, 2008 at 12:39 am
Definitely a wise decision - after all, the employees may also want to cash out a little without getting permission every time they want to sell some of their stocks. After all, it is better to let them sell a portion of stocks then have those willing to sell stocks leave not to ask for permission again.
Alphonse Ha Says:
August 5th, 2008 at 6:22 am
I don’t know anything about stocks but I am curious to know how can somebody get a hold of these stocks?
Inside Facebook » Facebook Employees Selling Stock Starting November 1 Says:
October 3rd, 2008 at 12:07 am
[...] plan to let employees sell vested shares at a $4 billion valuation to outside investors is going into effect November 1, Valleywag reports. According to the rumors, the company has a [...]