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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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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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