Facebook’s new look can’t conceal its old problems

NASDAQ’s Gamble With Facebook’s Fortune


NASDAQ had a choice. When its systems buckled under the titanic volume of Facebook IPO share orders, it could have pushed back trading a day, or at least recommended as much to Mark Zuckerberg and company.

But as the IPO’s scheduled time passed, NASDAQ made a cavalier decision to stumble forth on broken legs, pretending like little was wrong rather than halt trading as brokers asked. There seemed to be no plan for if things went wrong. An error-filled day of trading ensued, and confused investors pulled back. Financials aside, public perception is important for a public company. And when Facebook’s share price sunk, public perception went down with it.

In some ways, Facebook’s IPO was no disaster. It successfully raised $16 billion and didn’t leave a quick pay-day for the banks. Perhaps its share price would have fallen even if NASDAQ had upheld its end of the bargain…

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Facebook Revises S-1 Again: Adds 83,818,263 Shares Of Class A Stock, Could Raise $16B


Facebook is revising hard and fast in the lead-up to Friday when it is expected to ring in the Nasdaq bell and go public. In short, every revision is continuing to gradually push up the value of the company. Today’s S-1 filing has increased Facebook’s share offering to 421,233,615 shares of Class A common stock — 83,818,263 shares more than yesterday’s S-1, which had 337,415,352 shares of Class A common stock. Meanwhile the amount of Class B stock appears to have gone down.

With the additional shares, the company could now potentially raise up to $16 billion when it goes public, according to Reuters. Facebook is holding on the $34-38 price range. It will be trading on the Nasdaq as FB.

The move to increase the size of the offering could be read in two ways: it’s a way of meeting investor demand, which reports have noted continues to be high.

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Facebook’s Early Shareholders Will Sell Up To $5.5 Billion With IPO. Here’s Who’s Selling What:


Facebook’s early investors and employees may sell up to $5.5 billion alongside the company’s offering. Facebook said today that it is selling 180 million shares of stock at $28 to 35 a share. On top of that, other stockholders are selling 157,415,352 shares. Those proceeds will not go to Facebook.

Chief executive Mark Zuckerberg is selling 30.2 million shares, or up to $1.05 billion, which will mostly go toward settling the multi-billion dollar tax bill he’ll face when he exercises his options. Zuckerberg has an outstanding stock option to purchase 120,000,000 shares of our Class B common stock at a strike price of 6 cents. He’ll exercise half of it. That’s why he needs to sell 30.2 million shares to cover the taxes.

Even so, he’ll still have 57.3 percent voting control over the company, thanks to an extra 470 million shares over which he has “irrevocable proxy.” That…

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Meet the man behind the Facebook IPO

Facebook Set to File For $5 Billion IPO Wednesday: Report

Business & Money

Social networking giant Facebook is expected to file documents for its long-awaited initial public offering on Wednesday morning, according to a new report by International Financing Review, a Thomson Reuters publication. IFR said the 7-year-old company will seek to raise $5 billion.

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