Brace yourselves, Yelp
The lockup period was 180 days from the prospectus date, which puts the fateful expiration at tomorrow, Aug. 29. Shares have already been under pressure over the past week or so leading up to the known date, down 8.5% in the past week alone as we head into a date that should be circled red on investors' calendars.
We're talking about 52.72 million Class B shares that will be unshackled, potentially let loose into the market. That's massive relative to Yelp's three-month average daily trading volume of just over 700,000 shares, as well as the total 7.1 million shares sold in the IPO. Here are some of the larger shareholders that will be able to dump stock tomorrow if they so choose.
5% Stockholders |
Shares |
% of Total Voting Power |
---|---|---|
Bessemer Venture Partners Entities |
11.66 million |
22.1% |
Entities affiliated with Elevation Partners |
11.63 million |
22.0% |
Benchmark Capital Partners |
8.4 million |
15.9% |
Max Levchin, chairman |
7.1 million |
13.5% |
Jeremy Stoppelman, CEO |
5.9 million |
11.1% |
Source: Prospectus.
Rival reviewer Angie's List
Elsewhere in the recently public social media sector, Facebook
Chances are Yelp will follow in the same footsteps -- the real question is how bad will it be? Tomorrow the market will likely hear shareholders yelping in pain.
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