And so the day has come.... Finally Facebook will find its valuation water mark. With a predicted share price of about $38, the "company" will market value over $100 B USD. The Initial Public Offering will price this evening and the NASDAQ equity will start to rock and roll in the AM of 5-18-201.
Facebook's mission is to make the world more open and connected. With over a half of a billion people using the social media daily, well-well-well. The founder and leader of FB is the enigmatic Mark Zuckerberg. A genius, his forte is not business schmaltz or hucksterism. For many, his style, his asceticism and his hoodies make him a present day guru. In truth, an observer would have to wonder why he is bothering to take his enterprise public. Money??
Money? Surely not. Business advantage? Not likely considering its market monopoly. Thirty-three banks are distributiong shares led by Morgan Stanley. The presently beleaguered JP Morgan is also in line to cash in. Doubtless millions of bucks will be generated by the middle juicers providing conveyance of shares to the well heeled. Only about 15% of the total equity drop will be held by the general public. Hmmm.
As hard as this may to believe, the apex of FB's worth may be today or tomorrow or soon. Despite the seeming invincibility apparent, this business will detriorate over time. New technology, changing tastes, better methodology and internal fracturing will invariably cause cracking and erosion of the foundations of the monolith. As for Zuckerberg, he will not adjust well to being public.
Is it possible that the decisionmakers herein recognize the ultimate demise of FB? Is it possible that this move, at this time, will generate the most value? For sure, by the time the individual investor gets in on this, he likely will be paying more than tonight's set price. Another way to say this is to define the the individuals as the profit makers for the institutional lucky ones able to wrangle shares at the opening.
Face it Facebook fans, the next 24 hours represent a big lottery. Lots of losers and a few big winners. The biggest winner is likely to be JP Morgan. Being the lead bank on a deal like this one is manna from heaven. Manna...
So let's all kick back and watch history unfold over the next 24-36 hours. For sure business school courses will be built around the FB IPO and its fall out and consequences. Fortunes will be made. By the way is there any validity to General Motors' assertion that Facebook ads are poorly subscribed? Nah...