Microsoft Sold 20% of its Facebook Shares for Massive Profits at IPO

It’s no secret that Microsoft and Facebook have lucrative search and advertising deals together, but a new report suggests that Microsoft won big time by investing in Facebook before its initial public offering. Microsoft sold 20% of its shares in the company at the IPO, raking in $250 million, which is $10 more than the company originally invested in 2007 for all of its shares in the company.

The selling price at IPO for Facebook was $37.75, which is substantially higher than the current $19.20 price. Microsoft made a smart move by selling off stock in order to regain profits from the initial investment. If the company were to sell the entirety of its remaining stock at the current price, it will still rake in $500 million in profit. This probably won’t happen any time soon given the state of Facebook stock and how intertwined the two companies are, but it’s still interesting to note that Microsoft is capable of making sound business decisions.

[via The Washington Post]


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