Palantir cofounders Peter Thiel and Alex Karp have unloaded over $400 million in shares since the IPO by AngelAuYeung
Since data mining company Palantir’s IPO on September 30, its billionaire cofounders Peter Thiel and Alex Karp have sold a combined 41.45 million shares, for more than $400 million. Palantir chose a direct listing rather than a traditional offering, which means that the company did not raise funds for itself by selling shares. Instead, existing shareholders were able to sell and liquidate their shares on the open market.
But while it is undoubtedly a big payday for both billionaires, the story behind the numbers is a little more complicated. Karp, who is the CEO of Palantir, sold 14.1 million shares, or just under 11% of his stake, for $135 million. After taxes, he likely netted about $103 million. This is a significant chunk for a CEO to sell during, and within days of, a company’s IPO, though Karp had earmarked around 20.5 million shares that could have been sold at the IPO, per the company prospectus — a sale that would be worth nearly $200 million .
The IPO for this 17 year-old data mining company—which counts government agencies like the Department of Defense, the Central Information Agency and the Immigration and Customs Enforcement as its clients—was long-anticipated. However, investors had technical issues selling their shares during the offering. This was after the company had already pushed back its listing date twice and filed seven amended prospectuses before it finally went public on September 30.
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