May 18, 2012 SouthAmerica: The Facebook IPO fiasco did not become a total catastrophe because the underwriters of this IPO did not let the stock price to fall below the original IPO price of US$ 38 per share. Without the artificial support of the underwriters this stock probably would have headed south to at least US$ 30 per share on its first trading day, and the closing price could have been even in the US$ 20's per share. To be realistic and optimistic at the same time, because of future potential for the Facebook stock then this stock should be trading in the range of US$ 5 to US$ 10 per share. ***** Associated Press (AP) â May 18, 2012 â 4:30 PM Facebook IPO: Who is selling stock? Facebook IPO: âA look at who's selling shares in the social networkâ By The Associated Press | Associated Press Facebook Inc. sold 180 million of its shares in its initial public stock offering. Another 241.2 million came from existing stockholders, including the company's earliest investors and CEO Mark Zuckerberg. Even after the IPO, Zuckerberg remains Facebook's single largest shareholder, with 503.6 million shares. And he will control the company with 56 percent of its voting stock. The IPO sold at $38 per share, generating $6.8 billion for Facebook and $9.2 billion, collectively, for existing stockholders. Here's a look at early Facebook Inc. investors who sold stock in the IPO, how much money they gained and how many shares they still own. â Mark Zuckerberg Number of shares being offered: 30.2 million Value: $1.15 billion Number of shares still owned: 503.6 million â James Breyer and Accel Partners, where he's a partner Year invested in Facebook: 2005 Number of shares being offered: 49 million Value: $1.86 billion Number of shares still owned: 152.3 million â Peter Thiel, managing partner at The Founders Fund and PayPal co-founder Year invested in Facebook: 2004 Number of shares being offered: 16.8 million Value: $640 million Number of shares still owned: 27.9 million â DST Global Ltd. and affiliates, a London-based, Russian-founded investment firm focused on Internet companies and founded by Yuri Milner Year invested in Facebook: 2009 and late 2010 Number of shares being offered: 45.7 million Value: $1.74 billion Number of shares still owned: 85.6 million â Goldman Sachs and affiliates, investment bank and one of the IPO's underwriters Year invested in Facebook: 2011 Number of shares being offered: 28.7 million Value: $1.09 billion Number of shares still owned: 37.3 million â Elevation Partners, private equity firm focused on media and technology and affiliates Year invested in Facebook: Undisclosed Number of shares being offered: 4.6 million Value: $176 million Number of shares still owned: 35.5 million â Greylock Partners, Silicon Valley venture capital firm and affiliates Year invested in Facebook: 2006 Number of shares being offered: 7.6 million Value: $289 million Number of shares still owned: 29 million â Mail.ru Group Ltd., Russian Internet company Year invested in Facebook: 2009 Number of shares being offered: 19.6 million Value: $745 million Number of shares still owned: 36.8 million â Mark Pincus, Zynga Inc. CEO Year invested in Facebook: 2004 Number of shares being offered: 1 million Value: $38 million Number of shares still owned: 4.3 million â Meritech Capital Partners, venture capital firm focused on late-stage investments Year invested in Facebook: 2006 Number of shares being offered: 7 million Value: $266 million Number of shares still owned: 33.4 million â Microsoft Corp. Year invested in Facebook: 2007 Number of shares being offered: 6.6 million Value: $249 million Number of shares still owned: 26.2 million â Reid Hoffman, co-founder of LinkedIn Corp. and affiliates Year invested in Facebook: 2004 Number of shares being offered: 942,784 Value: $36 million Number of shares still owned: 3.8 million â Tiger Global Management, New York-based investment firm Year invested in Facebook: Undisclosed Number of shares being offered: 23.4 million Value: $889 million Number of shares still owned: 30.4 million â Other, smaller stockholders are offering another 70,504 shares. Value: $2.7 million Source: Facebook and Associated Press calculations ***** May 18, 2012 SouthAmerica: Here is a related stock to the Facebook IPO. Wall Street Journal â Market Beat - January 25, 2012 Four Out Of Five Underwriters Agree: Buy Zynga By Chris Dieterich The consensus among investment banks that helped launch Zyngaâs initial public offering: buy the stock. Wednesday marks the first time that analysts at underwriting banks can issue stock recommendations for Zynga, and four out of five were bullish on the San Francisco social game maker. Goldman Sachs, Morgan Stanley, JPMorgan and Barclays Capital each gave Zynga buy-equivalent ratings. Bank of America Merrill Lynch was more cautious, rating the stock at âneutral.â Source: http://blogs.wsj.com/marketbeat/2012/01/25/four-out-of-five-underwriters-agree-buy-zynga/ ***** Zynga's performance: December 16, 2011 - Zynga IPO price = US$ 10 May 18, 2012 â Zynga current market price = US$ 7 .
May 18, 2012 SouthAmerica: RT just uploaded this video of their Capital Account Show for May 18, 2012 with interesting information about the "creative accounting" to create income that is used by companies such as Zynga and Facebook. Capital Account â May 18, 2012 Facebook's IPO bombs & "hot" tech co.s cook the books <iframe width="420" height="315" src="http://www.youtube.com/embed/s1PWlUlAFAk" frameborder="0" allowfullscreen></iframe> All eyes seemed to be on Facebook's IPO today. But we look at some of these hyped up social media and gaming companies that have gone public and ask if they can get away with some choose-your-own-adventure accounting methods to boost profits. Plus, the Financial Times reports JP Morgan's chief investment office has built up positions totaling more than $100 billion in complex risky bonds - the types at the center of the 2008 crisis. This is in addition to the positions in credit derivatives that led to the $2 billion dollar trading loss we learned about last week. Has the bank's reputation until now as an "excellent risk manager" allowed it to escape scrutiny when taking these risks? We discuss all of this with Francine McKenna on this episode of Capital Account. McKenna is author of the blog re: The Auditors, and a columnist for Forbes and American Banker. .
markets tanking and captured investors on expectation of rally and enough funny money and easy money. i find it interesating that high was on may 1.
May 21, 2012 SouthAmerica: I just found on the web this video about Facebook: It is a funny video, but I wonder how many people who use Facebook on a regular basis use it like these guys. Facebook <iframe width="560" height="315" src="http://www.youtube.com/embed/LRKPY6geKV0" frameborder="0" allowfullscreen></iframe> .
May 22, 2012 SouthAmerica: The talking heads on the various business channels are all trying to find a scapegoat for the failure of the Facebook IPO. First it was not a failure, since they were able to find enough suckers and fools to buy a US$ 10 stock for US$ 38 per share. Wall Street hype once more took the public for a ride. "Goldman Sachs the Pillage People" cashed out a large chunk of their holdings and they are laughing all the way to the bank. Talking about a Wall Street heist, this Facebook IPO gave the American public another very good screw. Anyway. Americans should be used by now of being screwed by the banksters of Wall Street. As I said many times before Facebook should be trading in the range of of US$ 5 to US$ 10 per share - and I find difficult to justify even a US$ 10 billion US dollars market cap for this stock. .
facebook is worth no more than a few billion, the hype going on behind this company is incredible, its quite pathetic how people can actually believe this company is worth more than $100 billion. I hope no one is surprised when its trading in the single digits.
Yep...they sold all their shares of facebook and then cut revenue estimates the day after the IPO. http://finance.yahoo.com/blogs/dail...ebook-revenue-estimates-middle-133648905.html
May 22, 2012 SouthAmerica: Reply to peilthetraveler I hope you did not lose too much money on the latest Wall Street scam. I warned you in advance that this Wall Street IPO did smell like another Wall Street bankster scam - and when "Goldman Sachs the Pillage People" is involved in any deal you can be sure that the public will be screwed in a big way. .