Facebook said Tuesday that Chief Executive Mark Zuckerberg would not sell stock in the company for at least the next 12 months, a move to reassure investors spooked that shares will flood the market when lockup periods that allow insiders to sell stock expire in the coming months.
The social networking giant was looking to do some damage control after Peter Thiel, a Facebook director and its earliest investor, sold most of his holdings in the company last month.
In a regulatory filing after financial markets closed Tuesday, Facebook said two of its board members, Marc Andreessen and Donald Graham, plan to sell shares to cover tax liabilities, but would not sell additional stock.
The company also said it would not sell stock to cover a nearly $2-billion tax bill related to stock compensation and that it would instead use cash and borrow from its credit facilities. The moves reduce by about 101 million the total shares outstanding.