Mark Cuban On Facebook IPO: “I Took A Beating and Then Left”

Posted Jun 19, 2012

Mark Cuban revealed that he sold all 150,000 of his shares in Facebook when being interviewed on CNBC’s Squawk on the Street. “I already sold it, I took my hit, my thesis was wrong. I thought we would get a quick bounce just about the excitement about the stock. I was wrong, and when you are wrong you don’t wait, you just get out. So I took a beating and left,” said Cuban.

Cuban said that the Facebook stock was a trade and not an investment because there was an over issuance of shares. Cuban said that issuing 421 million shares hurt Facebook’s stock price.

“I mean if you look at other companies like LinkedIn, they issued 8.4 million shares and the stock skyrocketed. If Facebook would have come out with 8.4 million shares, instead of 421 million, the stock would be at about $200 right now. So it was just the circumstances that led to me getting in and out,” added Cuban.

Mark Cuban is the owner of the Dallas Mavericks NBA team, Magnolia Pictures, Landmark Theatres, and the HDTV cable network HDNet. He is also a “shark” investor on the TV show Shark Tank.

“It’s not just Facebook, like some people are trying to make it sound, it’s Google, how do they get out ads? It’s Zynga, it’s everybody dealing with the same issues,” said Cuban. “I think you will see an increase of monetization on the mobile level. But if Facebook can’t do it, everybody else has the same risk and the same problem.”