Update: The Times confirms the story.Earlier: We’re hearing from market sources that $13 billion hedge fund SAC Capital is accumlating a large stake in Facebook. It’s possible that SAC people are investing in Facebook, and not SAC funds.
We’ve been unable to corroborate some details, so we’ll break it down for you…
- Here’s what we’ve been told by a trusted source: For months now, SAC has been one of the more active buyers of Facebook stock in the secondary markets. SAC has also been buying Facebook stock directly from former employees.
- Here’s what we’ve been told by a new, untested source: SAC Capital just acquired 8 million Facebook shares at $32.50 per share. That’s a $260 million stake at a $76 billion valuation. SAC is looking to buy as much as 50 million shares at $33 per share – a $1.65 billion stake at a $78 billion valuation. Word is that SAC found out about a new 409A revaluation on Facebook employee shares from KPMG at $30+/share, and this caused to “pull their trigger.” This source admits he or she is in a position to sell Facebook stock, and that word of SAC’s interest will help.
- An SAC spokesman declined to comment on this story.
Our second source speculates: “It’s obvious SAC doesn’t want this story out, they’re not done accumulating so they don’t want to start a frenzy with the price. They’re smart!!”
For months now, much smaller chunks of Facebook stock have been selling for $35 per share on the secondary markets.
Facebook is expected to float a relatively small amount of stock on the public markets sometime early next year at a valuation above $100 billion. Facebook has about 700 million users. Last we heard it was set generate $2 billion of EBDITA on $6 billion revenues.
Obviously, we’d like to know more details. If you have them, please reach [email protected] or 646.376.6014.