Facebook is probably going to IPO at a valuation over a $100 billion.You might think this fact has Facebook employees giddy.
But it also has them worried sick.
Suddenly, they have a lot to lose.
If Facebook, or the market as a whole, goes down in flames – well, there goes the house and car in Hawaii and maybe the next startup, too.
So, as we keep reporting, vested Facebook employees are headed for the door. They want to quit so they can go ahead and sell some of their stock on the secondary markets.
“If you’ve seen the world blow up once, you just don’t know what’s going to happen a year from now,” one former exmployee tells Miguel Helft of the New York Times.
“It seemed very risky to stay in a situation where all of your liquidity was tied up in what I consider a high-risk company.”
To prevent a total exodus, Facebook has, from time to time, allowed employees to sell portions of their stock to outside buyers.
The manoeuvre didn’t always work.
“Even if I could sell all 20 per cent, having 80 per cent of your wealth in one illiquid asset is pretty insane,” the ex-Facebooker tells the Times.
“It’s not enough to make yourself bulletproof if the world blows up.”
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