Thursday, July 07, 2011

The bubble is upon us

Personally, I'm not a big Facebook user. Someone recently described it to me as the new AOL ;-)

Facebook Employees are selling X shares at a price of $35 per share in advance of the pending IPO. The price of $35 per share implies a valuation of $80 billion for the company (2,300,000,000 shares outstanding * $35). These shares will be subject to a 180 lock up period post the IPO (subject to extension). The timing of the IPO is unknown at this time and a syndicate has not yet been selected. The book is currently 2.0 – 2.5x oversubscribed. Expected pricing is mid next week, but is subject to acceleration.

Min purchase size 135K shares.

I'm playing with G+ right now and like it a lot better than Facebook...


botti said...

I was pretty addicted to it when I first joined in 2007, but now only check sporadically. It has been useful recently for posting some baby pics which friends & family members from around the world.

steve hsu said...

The most useful thing for me has been reconnecting with high school friends. But many (more than half?) of my "friends" on FB are people I have never met and don't know/care much about.

silkop said...

This will be a nice shorting opportunity.

TheValueMajor said...

No it won't. The market makers (who also happen to be the people running the IPO coincidentally) will make it very -EV to short it. The carrying costs for shorting LNKD are 100% annually at the moment.

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