Publication: The New York Times
Title: Interpublic Sells Half Its Stake in Facebook
Article by: Stuart Elliot
Interpublic first acquired its stake in Facebook in 2006. The stake was a strategic move to signal to clients (current and future) that they were invested in the growing area of social marketing.
On Monday, in a filing with the SEC, Interpublic said that it “would receive $133 million in net cash proceeds for the shares it is selling.”
The terms of the deal between Facebook and Interpublic Facebook were as follows: Facebook agreed to sell shares to Interpublic and in return Interpublic agreed “to spend $10 million with Facebook for clients of its agencies.”
With regards to deciding to self half their stake in Facebook, Michael I. Roth, chairman and chief executive at Interpublic, said “when an attractive opportunity to divest a portion of our position recently presented itself, we decided that it made sense to do so.”