Sharespost informed its members that it would stop "facilitating transactions in Facebook stock" as of this Friday. Sources say Facebook is targeting an early May IPO, and it requested that trading in its shares cease in advance of that.
The final Facebook auction will be March 30. According to Bloomberg:
Facebook’s implied value dropped 5 percent to about $93 billion in a late-February auction of a fund that holds shares of the social-networking company’s stock. The sale set a price of $40 apiece for 125,000 units of the fund, according to San Bruno, California-based SharesPost, which managed the auction. A Feb. 14 fund auction valued Facebook at about $98 billion.
It certainly makes sense for Facebook to stop the trading of its shares on the secondary market in advance of the IPO, especially given the risk of overvaluation.
TrackBack URL for this entry:
Links to weblogs that reference On Friday the Clock Strikes Midnight: