UPDATE 1-Interpublic exits Facebook
Nov 20 (Reuters) - Interpublic Group of Cos said it sold its remaining investment in Facebook Inc for $95 million in cash.
Interpublic said it expects to record a pre-tax gain of $94 million. It had recorded a pre-tax gain of $132.2 million for the third quarter of last year from the sale of half of its 0.4 percent stake in Facebook.
Interpublic paid less than $5 million for the stake in 2006.
Shares of Facebook, which debuted with a market value of more than $100 billion in May, have lost nearly half their value since then on concerns about money-making prospects.
"We decided to sell our remaining shares in Facebook as our investment was no longer strategic in nature," Chief Executive Michael Roth said in a statement.
Interpublic also authorized an increase in its existing share repurchase program to $400 million from $300 million. The company repurchased shares worth $151 million, as of Sept. 30.
Shares of the company were up 1 percent at $10 on the New York Stock Exchange on Tuesday.
Facebook shares were marginally up at $23.00 on the Nasdaq.
- Investigators look for motive in Malaysia plane disappearance |
- Police make third arrest in murder of Colorado socialite
- Malaysian PM says lost airliner was diverted deliberately |
- Indian Ocean poses daunting challenge in search for missing Malaysia plane
- Malaysia PM says lost plane's movements indicate a deliberate act