George Soros, the legendary investor, has spent more than $10m (£6.3m) acquiring a stake in Facebook, signalling a rare vote of confidence in the social-networking site after its troubled flotation in May.
The billionaire, who led a run on the pound in 1992, purchased 341,000 of the social network's shares – worth $10.6m – in the second quarter, it emerged yesterday. But the share price of Facebook, which was co-founded by its chief executive, Mark Zuckerberg, has dropped by more than a third since Mr Soros bought the stake.
Indeed, the company's value has nearly halved since it floated at $38 three months ago, driven by investors questioning its long-term prospects. The share price could come under yet more pressure after a lock-up agreement preventing employees and early investors selling their shares expires today.