Why Is Long-Time-Backer Peter Thiel Departing Facebook-Parent Meta's Board?

Billionaire-entrepreneur Peter Thiel is leaving Facebook-parent Meta Platforms Inc’s FB board.

What Happened: The PayPal Holdings Inc PYPL co-founder has decided not to stand for re-election to the Meta Board of Directors at its 2022 annual meeting of stockholders, according to a statement by the company.

Thiel, who is also a founder of Palantir Technologies Inc PLTR, will continue to serve as a director until the annual meeting. He has been on the Meta board since April 2005.

Meta CEO Mark Zuckerberg described Thiel as an “original thinker” and noted his two-decades-long service to the board.

“Mark Zuckerberg's intelligence, energy, and conscientiousness are tremendous. His talents will serve Meta well as he leads the company into a new era,” Thiel said in a prepared statement.

See Also: How To Buy Meta Platforms (FB) Shares

Why It Matters: Thiel wants to focus on the November midterm elections and sees those as crucial in changing the direction of the United States, reported The New York Times, citing an anonymous source.

The person told the Times that Thiel was backing candidates that support former President Donald Trump’s agenda.

Thiel provided $500,000 in capital for Facebook in the company’s early days, which in turn gave his venture company Founders Fund a 10% stake in the social network company and a seat on its board, as per the Times.

Thiel funded a clandestine legal effort against Gawker media, which ultimately led to the website’s bankruptcy. 

Price Action: On Monday, Meta Platforms’ shares closed 5.1% lower at $224.91 in the regular session. The shares slipped another 0.9% in the after-hours trading.

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Photo: Courtesy of Dan Taylor via Wikimedia