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Facebook is rolling back the employee stock sale initiative that it launched in August this year. The plan allowed employees to sell a small amount of their shares – no more than $900,000 or 10 percent of their stock holdings, whichever was less. According to an email sent by Zuckerberg to employees:

“I’m writing this note to let you know some bad news. Despite a lot of work, we have not been able to finalize a plan for the employee stock sale we announced in August.”

One possible reason for this might be that potential investors wanted to buy shares from employees a much lower valuation than the $4 billion figure we have had sometimes back.  This obviously would have resulted in a tremendous loss of the paper value of Facebook.