Moneycontrol.comFacebook to join Russell 3000 indexReutersFacebook will be the largest addition to the index in market capitalization. The social network giant made a market debut in May. Among other IPO additions to the Russell 3000 are software maker…
Moneycontrol.comFacebook to join Russell 3000 indexChicago TribuneFacebook will be the largest addition to the index in market capitalization. The social network giant made a market debut in May. Among other IPO additions to the Russell 3000 are softwa…
ValueWalkFacebook to join Russell 3000 indexReutersFacebook will be the largest addition to the index in market capitalization. The social network giant made a market debut in May. Among other IPO additions to the Russell 3000 are software maker Splunk…
CBS NewsFacebook, Twitter try to make mobile payCBS NewsThat challenge — and the fundamental questions it raises about the social network's future as a business — is at the heart of the company's botched IPO and the reason it has lost more th…
The question is, from where? Facebook is Top Short-Seller Target Among Large Stocks – Bloomberg No large U.S. company is attracting more attention from short…
TechCrunchWill Facebook's IPO Woes Hurt Start-Up Funding?Wall Street Journal (blog)By Scott Austin Ever since Facebook's bungled IPO, we've wondered whether the social network's subsequent 28% drop in market capitalization would ripple …
CNBC.com (blog)Facebook IPO Bad Sign for Others: BankerCNBC.com (blog)Facebook, the internet's top social network and the first US company to start with a market capitalization of more than $100 billion at its initial public offering (IPO) last mon…
ITProPortalFacebook shares plumb new depths, valuation questionedSouth Bend TribuneSince its market debut on May 18, the eight-year-old company has shed approximately $25 billion in value — roughly equivalent to the market capitalization of Morgan Sta…
I hope you didn’t buy shares of Facebook (Nasdaq: FB). The valuation was always too aggressive.
And increasing both the price and amount of Facebook stock at the last moment ensured that both underwriters and retail investors ended up with far more shares than they bargained for.
In fact, the Facebook fiasco reminds me of another deal that marked the peak of the dot-com boom.
No, not the ineffable and rather sweet Pets.com- their IPO was far too small a deal to have genuine market significance.
Instead I’m talking about the AOL and Time Warner merger announced on January 10, 2000.
Like Facebook, the deal was sold as a big success. It was only later that it quickly became clear that AOL had sold itself at the absolute peak of the market.
From there on out it was all downhill as the storied merger practically top-ticked the market.
Before Facebook There Was AOL
AOL had built up a nice business from “dial-up” Internet access, but it was already obvious by January 2000 that the arrival of broadband Internet would make for a difficult transition.
As such, AOL’s market capitalization of around $200 billion was purely the result of the frothy market of 1999.
Nevertheless, that rich valuation enabled AOL to become the senior partner in an acquisition of the Time Warner media conglomerate, getting 55% of the merged company in a deal valued at $350 billion. It was the largest merger in U.S. history.
Facebook’s IPO Already Happened – Several Months Ago on Secondmarket | Daniel Gross – Yahoo! Finance
Back in the day, when a hot company with scale and a lot of interest came along, there was nowhere for investors to express their…
