Secondary Markets

The Future of SecondMarket In a World Without Private Facebook Shares


In SecondMarket’s 2011 year-end report, Facebook beat out Twitter, Foursquare, Gilt Groupe, Hulu, Spotify, and more as the trading platform’s number one most-watched company. Facebook has 14,973 “watchers,” almost double the next-closest, Twitter at 7,854. More tellingly, according to public statements from CEO Barry Silbert, 30 percent of SecondMarket’s revenue came from trading private shares of Facebook stock, which will soon become a province of the public markets.

But to hear Mr. Silbert tell it, he’s coping with the loss just fine. After all, it’s not like they didn’t know this was coming. As Crain’s reports, on Wednesday, Mr. Silbert told the audience at an Xconomy forum on New York’s venture capital scene, “We’re completely prepared to fill the hole,” adding, “We’re hiring, and we have a lot of capital.” Read More

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Day After Facebook IPO, Appears to Be Having Some Problems [Updated]

A tipster wrote into Betabeat this afternoon to complain about not being able to get into the social network. You know the one? With a valuation in the the neighborhood of a $100 billion and a fancy new IPO filing? “Facebook is so slammed with traffic it’s basically nonfunctional #ipoday,” the source kvetched, adding, “It’s taking forever to load and won’t like, work. search etc.” In the past twenty minutes, Betabeat has failed to even log on to Facebook three times, before finally getting through. A quick search for “Facebook slow” on Twitter reveals we’re not the only ones: Read More

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Facebook Graffiti Artist May Be Worth $200 M, Is Pals With Porn Star Sasha Grey [VIDEO]


Charlie Ayers, better known as the “Google Chef,” is a popular reference point in IPO chatter because his stock options earned him a life-changing $26 million. Well, the New York Times has just uncovered the Facebook equivalent: graffiti artist David Choe.

Yes, the same David Choe who covered the office of Facebook’s first Silicon Valley office with erotic art. In fact, noted art appreciator Sean Parker encouraged Mr. Choe to “go crazy and draw as many giant ‘cocks’ as Choe wanted.”

Shares owned by the artist could be worth “upwards of $200 million” when Facebook goes public, based on the company’s $75 billion to $100 billion valuation. That could be more than Damien Hirst’s record-holding $200.7 million Sotheby’s auction in 2008. Read More

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Allen & Company Was the Only Facebook Underwriter Reporters Couldn’t Figure Out

Mr. Allen. (Ted Thai / Getty Images)

Facebook’s S-1 filing is out, and almost all the early reports were true. The company has reserved the ticker symbol FB, although it has not announced on which exchange it will debut; the working number is $5 billion and the lead underwriter is Morgan Stanley.

Reporters were also able to sniff out four other banks working on the IPO: J.P. Morgan, Goldman Sachs, Bank of America and Barclay’s Capital. But one underwriter slipped through: the boutique New York-based investment bank Allen & Company, which puts on the annual Sun Valley conference that regularly attracts billionaires and media mogulsRead More

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We Read Facebook’s S-1 Filing So You Don’t Have To

Mr. Breyer.


Voting rights:

Mark Zuckerberg has 28.2 percent voting power, pre-IPO based on personal shares: 28.4 percent of class B shares. But that’s not all. “As a result of voting agreements with certain stockholders, together with the shares he holds, Mark Zuckerberg, our founder, Chairman, and CEO, will be able to exercise voting rights with respect to an aggregate of shares of common stock, representing a majority of the voting power of our outstanding capital stock following our initial public offering.” Altogether, that gives him majority control with 57 percent voting rights. Read More


Facebook Founder Eduardo Saverin on Facebook’s IPO: ‘What a Ride!’

eduardo oh eduardo

Facebook is going to become a stock you can invest in as of today. If you haven’t already heard this news, you probably don’t even know what Facebook is (in which case: How’d you get here?).

Either way, Eduardo Saverin—the press-shy founder of Facebook who was famously ousted from the company in its early days, thus giving The Social Network a plot and Saverin a decent-sized cash settlement—has spoken on the matter of the Facebook IPO… Read More

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Zynga: Investors Only Really Have Two Things to Worry About With Facebook


Zynga mentioned Facebook 204 times in its S-1 filing. Zynga’s fortune is Facebook’s fortune, so we wondered, what keeps the game maker up at night? Zynga had plenty of concerns about its dependency on Facebook: terms of service changes, changes to the credits policy, changes to the way it can communicate with Facebook users, and fear of being booted from the platform.

Of course, the ultimate worst case scenario: Zynga fails if Facebook fails.