Talk about a wise investment: Interpublic Group of Cos. paid less than $5 million in 2006 for a stake in Facebook. After selling about one-half of that stake to an undisclosed buyer in August 2011, for $133 million, IPG unloaded the rest of its share of the social network Tuesday for $95 million in cash.
IPG said it expects to record a pretax gain of $94 million on the transaction, and Chairman and CEO Michael Roth said in a statement:
The value of the investment we made in Facebook in 2006 has increased significantly during the past six years. We decided to sell our remaining shares in Facebook, as our investment was no longer strategic in nature. Simultaneously, our board has authorized an increase in our share-repurchase program of $100 million. We view this as another opportunity to enhance shareholder value reflecting the confidence we have in our company.