There is a spectre stalking Silicon Valley, reports the Wall Street Journal. Specifically, it’s the ghost of once-bright hopes for wealth-creating IPOs. Zynga, Groupon, Facebook–none of them turned out quite like everyone hoped, and it is bumming out the rank-and-file in a big way.
The worker bees have lost a lot of the paper wealth Read More
Just as the social networking monolith hits a landmark 1 billion users, Facebook has had to admit it really does have a fake “like” problem. The fake clicks may well be hardwired into Facebook’s architecture at the moment, based on discoveries about the nature of false clicks. The BBC reports:
This morning, Dealbook honcho Andrew Ross Sorkin made his case for the villain in the melodrama that is Facebook’s bungled IPO: CFO David Ebersman, who gave the $38 offering price the go-ahead. His excessive optimism–so goes the argument–flooded the market with overpriced shares, which have since lost half their value, and now there’s no upswing in sight, and that means Mr. Ebersman, at the very least, deserves a public calling-out.
Well, Mark Cuban thinks that’s bullshit.
In a new blog post titled “Facebook Handled Its IPO Exactly Right,” he calls Mr. Sorkin’s conclusion “180 degrees wrong” then goes on an absolute tear in defense of Facebook’s IPO pricing. Short version: It’s not David Ebersman’s job to make sure you don’t lose money betting on Facebook.
Today, in Facebook hangovers: GSV Capital, a firm that got a big boost from its 2011 investment in the company. The New York Times reports GSV is now taking its lumps, thanks to that very same investment.
As Social Network star Justin Timberlake once put it: What goes around, comes around (comes around, comes around).
Here we were, prepping a Zynga post, when we popped over to check a detail on Facebook and discovered much to our horror a page that read “The webpage at https://www.facebook.com/ is currently unavailable.”
Nor is it our admittedly budget Internet, either: A quick check of Twitter reveals that this Betabeat reporter is not alone, with a flood of tweets confirming the social network is down for at least some users. DownRightNow confirms, as does downforeveryoneorjustme.com/facebook.com. We checked Facebook’s official Twitter account, but it hasn’t been updated since May 24th, of course.
We’ve reached out to Facebook for details and will update when we hear more. In the meantime, please remain calm, Twitter and Tumblr are still functioning.
Presumably Sheryl Sandberg, corporate ninja, is personally sorting this out as we speak.
Well, well. Color us shocked. Remember that Facebook policy poll that we reported on last week? In the post, we guessed that no one would actually take the time to vote, and apparently we were right: Ars Technica crunched the numbers and turns out that only .038 percent of Facebook users bothered to cast a vote in the site-wide poll.
According to Ars:
Facebook closed the vote on its new data use policy and new statement of rights and responsibilities Friday, with a paltry 342,632 ballots cast as of a minute before closing. The vote needed 270 million participants to be binding, but falling far short of that benchmark, Facebook will use the vote tally in an advisory manner as it mulls a change over its new policies.
We’d like to institute a moratorium against complaining about privacy issues for anyone who couldn’t be bothered to vote, but we know it won’t make a difference. Carry on, Internet folks.
Head for your bunkers: Facebook fallout is upon us. (Maybe.) Bloomberg reports that–according to one source, anyway–Kayak plans to delay its IPO, in the wake of Facebook’s less-than-stellar debut. Says Bloomberg:
The Norwalk, Connecticut-based online travel service has postponed the roadshow for the offering, which was scheduled to start last week, said the person, who declined to be identified because the information is private. Morgan Stanley, the lead bank on Facebook’s initial share sale, also was hired to lead Kayak’s IPO.
Facebook’s stock is currently at $28.19, well under its $38 debut. Given that it was the highest-profile technology IPO in years (seriously, “frenzy” doesn’t even do it justice), there was no way that wasn’t going to have some sort of impact. One researcher told Bloomberg: “After Facebook’s tumble, investors are not willing to buy pie in the sky.” Ouch.