"Outsiders" Technology Watch (5/17/2012): Facebook's D-Day
The Facebook D-Day has arrived!!!
Just like all around the World, I have continued to be fascinated by the rise of Facebook. I watched the Social Network to get some sense of the Facebook journey and transformation so far. I am a fan and am a regular visitor because I leverage the power of Facebook for its' knowledge, its' outreach and the information I need as I assess my work here in "Outsiders" and beyond. The idea of reaching almost 900 Million Users is indeed power.
There is a scene in the Social Network when Sean Parker, the First President of Facebook and one of these now "oldtimers" in Silicon Valley throws a party as Facebook approached its' first million member. I wonder what they will do when they reach a Billion--that's almost 1 out of 7 people on Mother Earth!!! To me, that's indeed power.
As Facebook's CEO gears up to ring the opening bell on NASDAQ Friday, there are indeed storms on the horizon. The good news is that the demand has been high. It was so high that Facebook was forced to issue 80 Million Additional Shares and stopped taking IPO orders yesterday. It increased the range of its' IPO price to upward of 38 Dollars a share. However, GM announced that it would stop promoting its' products on Facebook because it determined that its' return on investment for ads on Facebook was dubious at best. It would continue to maintain its' free presence on Facebook as would others. I am with Joe Scarborough of MSNBC when he noted on his show that this is 1999 all over again simply because of the immense valuation being placed on Facebook.
What I also find striking in the reporting I've reviewed has been the high percentage of insiders who are selling their stake. It is a lot higher than Google. I have to wonder how that would work out in the long term. What is clear is that Facebook has to continue to stay relevant to avoid being myspace's fate.
There will be many winners. One of the key winners will be the State of California who is expected to receive a 2.1 Billion Dollar windfall as a result of Facebook's IPO. It will come in handy as it deals with a 16 Billion Budget Shortfall. I would not bet against the Facebook team just yet as it gears up to roll out Facebook 2.0 and to introduce a 100 Billion Company to the World.
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