Facebook’s oft-criticized initial public offering has at least one high-profile backer: InterActiveCorp Chairman Barry Diller, who spoke out in favor of the social network’s $38-per-share launch price on CNBC’s “Squawk Box” Tuesday morning.
It was rumored that Facebook Director Peter Thiel was going to sell some of his stock in the social network when it was possible. The rumor is now fact. CNBC reported Monday that Thiel offloaded nearly all of his shares — about 22 million of them (2 million of which were distributed to his limited partners). Microsoft also sold 20 percent of its Facebook stock, which dipped below $19 per share Monday before rallying to $20.01 at closing time. The fallen stock price has an effect on the social network’s pending Instagram acquisition, as well.
The stock of popular Facebook application developer Zynga has dropped despite growing revenue, which the company reported Wednesday in its second-quarter financial results. Zynga noted that it is scaling back its outlook for the rest of 2012, citing a challenging environment on Facebook’s platform.
It has been a rocky road for Facebook after its initial public offering. The reports of several Facebook underwriters were released today, as analysts feel that the company will be fine long-term, but there are still some lingering doubts about turning mobile usage into money.
No Facebook by 2020? That’s how one analyst sees it, comparing the next few years for the social network to the past few years for Yahoo.
Morgan Stanley Chairman and Chief Executive Officer James Gorman appeared on CNBC’s “Closing Bell with Maria Bartiromo” Thursday afternoon, reiterating that his company did nothing improper in the run-up to Facebook’s initial public offering and urging patience with the social network’s slumping stock, saying, “The story isn’t over. Again, we are at day eight here. Give this a little bit of time.”
Social enterprise software giant Buddy Media Co-Founder and Chief Executive Officer Michael Lazerow was at no loss for words this morning when it came to dissecting Facebook’s impact on advertising.
The much-ballyhooed Facebook initial public offering will open trading Friday morning at $38 per share, the top end of the range the social network filed with the Securities and Exchange Commission earlier this week, CNBC reported.
Facebook filed with the Securities and Exchange Commission Wednesday morning to add 83,818,263 shares to its Friday initial public offering, bringing the total offering to 421,233,615 shares of class-A common stock.