Facebook in a crisis

[Bailey]

http://http://www.bbc.co.uk/news/business-19565937

Still sounds like a 6 year old looking for his mum

 

[foz]

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.

Before I begin, let me remind you that I own 57% of the voting stock of Facebook, which means I have complete control over it. I organized the company this way many years ago, with the very deliberate intention of maintaining complete control over it. I did this so I wouldn't get overruled and canned by venture capitalists, a fate that unfortunately befalls many entrepreneurs. I also did it so in the event that we ever had to go public—which we unfortunately have to do now—I would never have to pay attention to whiny short-term public shareholders. Those whiny short-term public shareholders have destroyed many great companies by making management obsess about absurd near-term financial targets. I have made sure that that's never going to happen to Facebook. If there ever comes a day when you and I disagree about the future direction of the company, rest assured: Your choice will be my way or the highway.

Read more: http://www.businessinsider.com/facebook-stock-letter-shareholders#ixzz26F0sSjHX

 

[Thomas Nash]

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.

 

[max99x]

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

 

[TinkyWinky]

monetise mobile and add a simple search box

My sentiments exactly...

 

[Aegean]

I think it was crazily overvalued at first

Absolutely right.

 

[eddieb]

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

...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

 

[Rob_F]

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

 

[Edwin]

...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

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.

 

[eddieb]

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.

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.

 

[Edwin]

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.

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!

 

[eddieb]

If you actually read up on it

Amazing, you know what I have and haven't read up on

no he doesn't have much money at all compared to the current value of Facebook

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

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!

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?