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Facebook in a crisis

Discussion in 'Business Discussions' started by Bailey, Sep 12, 2012.

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  1. Bailey United Kingdom

    Bailey Well-Known Member

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  2. Domain Forum

    Acorn Domains Elite Member

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    IWA Meetup
     
  3. foz

    foz Well-Known Member

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    The business (hence profits) is secondary to Mr. Zuckerberg thinking, and as he has a controlling stake in the company that's not going to change.

     
  4. Thomas Nash

    Thomas Nash Member

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    I'm not sure if they're in a crisis or the company was just wildly overvalued in the first place. It all hinges on whether they can monetise the mobile site well in the next year or two without annoying users too much, time will tell.
     
  5. max99x United Kingdom

    max99x Well-Known Member

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    I think it was crazily overvalued at first... it's now coming down to more like it should have launched at.

    They need monetise mobile and add a simple search box at top for web results and there revenue would go crazy i reckon
     
  6. TinkyWinky United States

    TinkyWinky Well-Known Member

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    My sentiments exactly...
     
  7. Aegean Greece

    Aegean Active Member

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    Absolutely right.
     
  8. eddieb United Kingdom

    eddieb Active Member

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    ...and Mr Z can now buy back some of the shares at a fraction of what they were sold for a few months back, WIN/WIN for him, LOSE/LOSE for the investors
     
  9. Rob_F United Kingdom

    Rob_F Well-Known Member

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    Up 6.5% today so guessing the market likes what he is saying. That might even be a record daily increase for FB, assuming it can hold on to it until close of play.

    - Rob
     
  10. Edwin

    Edwin Well-Known Member

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    Using what money? Pretty much the only cash he made at IPO time went straight to the IRS to offset the tax consequences of his new-found paper wealth.
     
  11. eddieb United Kingdom

    eddieb Active Member

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    Your not telling me Mr Z doesn't have any money are you? I wouldn't mind being a few quid behind him
    If his accountants can't use the drop in share price to his advantage when he makes his next tax return they should be sacked.
     
  12. Edwin

    Edwin Well-Known Member

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    If you actually read up on it, no he doesn't have much money at all compared to the current value of Facebook - which is what's important here. On paper he's worth several billion dollars, but that's exactly what it is: paper. And he can't use that paper wealth as collateral to buy Facebook shares because it IS Facebook shares!
     
  13. eddieb United Kingdom

    eddieb Active Member

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    Amazing, you know what I have and haven't read up on
    who's comparing it to Facebooks value? Only a tiny fraction of Facebook shares were sold off and I'm pretty sure he could scrape together enough to pick up some of those if he wanted
    Actually he can, the Glaziers raised collateral based on the assets of Man Utd (who they didn't even own) and then used that money to buy the club.
    If, as you say, Mr Z has little money I think Donald Trump, Bill Gates and the other members of The Giving Pledge may be disappointed. And what about the reported $100m that he donated to Newark Public Schools? Surely not Mickey Mouse dollars?
     
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