Randos Still Getting Busted for Alleged Dumb Facebook Stock Scams

Who you callin nerd (Photo by Kevork Djansezian/Getty Images)

Apparently, a year later, we’re still not done with the fallout from the Facebook IPO. The Manhattan District Attorney has just indicted Ronen Zakai, a former stockbroker, for an alleged scheme to defraud his pals with promises of Facebook shares.

He’s accused of soliciting $705,000 for something called the “Social Innovation Fund,” promising to use the money to buy Facebook stock and then… not. Instead, the D.A. says, he allegedly used the money “on various expenses – including country club membership fees, car payments, traveling, and shopping trips – and through large cash withdrawals.” Read More

IP Uh Oh

Facebook’s Cold IPO Calculus: Protecting Insiders Over Shareholders, Obscuring Risks

Zuck. (Photo: scrapetv.com)

Yesterday over drinks, we asked an angel investor if he thought Gilt Groupe would actually go public this quarter or next year, as planned. Fat chance given the post-Facebook IPO market, he replied. (Stronger language was used.)

Today, Bloomberg offers a must-read, in-depth investigation into just how cynical Facebook was in the lead-up to the IPO, including obscuring material information on risks demanded by the Securities and Exchange Commission. Those vulnerabilities, such as difficulties in monetizing mobile, decelerating revenue and dependence on Zynga, became painfully evident to shareholders who have watched what was supposed to be “the IPO of the Century,” drop in share price from $38 down to $19.69 as of this afternoon.  Read More

It's Zuck's World We're Just Living In It

Mark Zuckerberg No Longer On List of 40 Wealthiest People

Hang in there just like that kitten on the poster, Mr. Zuckerberg. (flickr.com/gpaumier)

If you felt The Force shudder and ripple sometime tonight it may have been due to the Earth-shattering report that Facebook’s C.E.O. Mark Zuckerberg has left the world’s 40 richest people list. We would pause while you gasp and sob but it’s scab-pulling time regarding the bad news for the youthful billionaire–and anyway, we think Zuck can handle the pain: Read More


IPO Day Facebook Statuses From Early Facebook Employees

14 Photos

Chris Hughes, cofounder

Congratulations to all the newly minted billionaires out there! (For up-to-the-minute coverage, see our liveblog.) So how are early Facebook employees celebrating, since it’s apparently déclassé to run out and buy a shiny new Lambo? To check up on the Facebook Mafia, we went right to the source and investigated. We found radio silence from a few prominent names (Sean Parker and Dave Morin*, please call your offices). We also discovered that more than a few of these folks seem to have either instituted strict privacy settings, bailed on the network entirely or, most scandalous of all, still haven’t switched to Timeline. But we found plenty of status updates to amuse and enlighten.  Read More

On the Scene

In Which We Investigate the Scene Outside of NASDAQ’s Times Square MarketSite

7 Photos

Facebook IPO Day!

Betabeat has the distinct pleasure of working a few blocks from the NASDAQ MarketSite, so we decided to venture over and see what the scene looked like on the day of the biggest-ever tech IPO. We arrived just as Facebook released its shares and watched the prices flash up and down on the TVs. “FB NASDAQ Listed” read the big screen facing Times Square. Read More


The Facebook (FB) IPO Day 1 Liveblog, Go!

The man of the day. (Photo: flickr.com/rubygoes)

And that’s all she wrote! Enjoy your weekend, try not to spend it on Facebook. 

6:06 p.m.: Cue the speculation on the next Facebook to go public. Over on

3:55 p.m.: Zynga investors are likewise not having the best day.


Booting Up: All Facebook Everything

You know who. (Photo: flickr.com/prospere)

Facebook’s 421,233,615 shares are opening at $38 each [Facebook]

Who’s getting paid today? [Fortune]

A picture of a Facebook share [Business Insider]

Facebook had a wacky hackathon last night! [VentureBeat]

How will Europe ever build the next Facebook? [New York Times]

Hong Kong trading platform offers $200 of Facebook stock to new users [TechCrunch]

Ostentatious wealth is frowned upon in Silicon Valley, which likes its millionaires in jeans and hoodies [New York Times]

There are more than 30 banks handling Facebook’s public trading debut, for fees of $100 million. What, exactly, do these banks do? The Guardian investigates. [The Guardian]

It's Zuck's World We're Just Living In It

NASDAQ and NYSE Bicker Over Facebook IPO: You, Sir, Are No Brad Pitt

Not this.

Mark Zuckerberg still hasn’t announced which stock exchange he wants to call home, but that hasn’t stopped NASDAQ and the New York Stock Exchange from sniping at each other in the press.

Their bitter rivalry is underscored by the fact that their business is “being eroded by other global exchanges and upstart electronic-trading venues,” reports the L.A. Times. Read More