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...

4 comments:

  1. 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.

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  2. 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.

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  3. This will be a nice shorting opportunity.

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  4. TheValueMajor9:09 PM

    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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