At last, here’s the sort of friend Facebook needs. George Soros, the legendary investor, has revealed he spent around $10.6m buying 341,000 shares in the social networking site in the second quarter.
The new investment by the billionaire, which was revealed in a regulatory filing by Soros Fund Management for his holdings at the end of June, is contrary to move of other investors who have been rapidly “defriending” Facebook ever since it listed in May.
Shares in Facebook, which was one of the biggest listing in history and one of the worst performing, have plunged by almost 50pc from their listing price of $38 per share. They’ve dropped around 34pc since Mr Soros bought his stake amid doubts over the value of the company.
A fresh instalment of Facebook shares could hit the market on Thursday after the first “lock-up” – which prevents staff and pre-IPO investors from selling – is lifted.
The ban on selling shares is set to be lifted gradually over nine months, adding 9bn shares to the 421m offered at the IPO. A total of 271m shares could potentially be sold oN Thursday, although analysts are not expecting a big sell-off because the stock is so low.
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