Game developer Zynga and Facebook, once virtually intertwined, continue to drift further apart from each other, as Zynga announced in a post on its blog that while login with Facebook will still be an option for game players, it will no longer be a requirement starting next week.
The name Barbara C. Jacobs may not ring a bell for most readers, but the name of the assistant director for corporation finance at the Securities and Exchange Commission is definitely a familiar one in the offices of Facebook Chief Financial Officer David Ebersman and Fenwick & West, the social network’s law firm, as she and her staff were responsible for vetting the company’s initial public offering filing.
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.”
Facebook, Morgan Stanley Face Lawsuit, Investigation Over Alleged Selective Sharing Of Lower Revenue Projections
Were certain big-name investors made privy to information that should have been disseminated more widely? Such are the latest allegations with regard to last Friday’s Facebook initial public offering, which have led to a lawsuit filed against the social network and banks including Morgan Stanley today, following the call for an investigation yesterday by the Financial Industry Regulatory Authority and the Securities and Exchange Commission.
A total of 38.5 percent of the 421,233,615 Facebook shares purchased by underwriters prior to its initial public offering went to Morgan Stanley, while E*Trade, which had been touted as the best source of stock in the social network for individual investors, received only 0.05 percent of the shares, according to an amendment to Facebook’s S-1 filing with the Securities and Exchange Commission, filed after the close of trading Friday.
To the executive class, Facebook looks an awful lot like an old-school media company. That’s because its business model is built on earning revenue through, you guessed it, selling ads. In order for people to buy the ads, they have to prove effective and get people to buy things. But this return on investment has historically been difficult, no matter the medium.
Facebook late last night filed the sixth amendment to its S-1 filing with the Securities and Exchange Commission for its May 18 initial public offering, acknowledging the challenges of monetizing advertising on its mobile products, and announcing the grant of restricted-stock units to employees.
The fifth amendment to Facebook’s initial public offering filing contained a warning that Yahoo found 16 more patents that “may be relevant” to the patent-infringement lawsuit it filed against Facebook in March.
Facebook officially acknowledged that it topped the 900 million monthly average users mark, saying in the fourth amendment to its initial public offering filing that it totaled 901 million MAUs as of March 31, up 33 from 680 million on the same date in 2011.