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Blue Blooded-05
05-17-2012, 04:38 PM
Mark Zuckerberg, age 28, will "officially" become the world's newest billionaire tomorrow when the Facebook IPO begins trading around 11AM.

Think about this... According to marketwatch.com; the IPO consists of the following:

$16 billion IPO consisting of approximately 421 million shares, valued at $38 per share

Zuckerberg plans to sell approximately 30.2 million shares, which should net him a cool $1,147,600,000 (that's $1.15 Billion if all those didgits makes you nauseous).

Zuckerberg will retain approximately 502.6 million shares, leaving him with a mere $19,100,000,000 ($19.1 Billion) in unrealized value.

Add it all together, at 11AM tomorrow morning, Mark Zuckerberg will be worth approximately $20,821,400,000 ($20.8 Billion).

For perspective... Consider the Mega Millions lotttery last month that was making everyone go crazy (including many of us on this board)... Mark Zuckerberg will be worth more than 32 times the amount of that jackpot!

...Let that sink in...

GoMuskies
05-17-2012, 04:45 PM
I don't know that he's any more "officially" a billionaire tomorrow than he is today. His shares are obviously worth a lot more than a billion today. That won't change tomorrow. Charles and David Koch's money is mostly tied up in illiquid stock in a private company, and no one claims they're not billionaires.

Blue Blooded-05
05-17-2012, 06:07 PM
I don't know that he's any more "officially" a billionaire tomorrow than he is today. His shares are obviously worth a lot more than a billion today. That won't change tomorrow. Charles and David Koch's money is mostly tied up in illiquid stock in a private company, and no one claims they're not billionaires.

The value of one's assets are only worth what someone is willing to pay for them in the open market.

While Zuckerberg has theoretically been worth billions for awhile now, it doesn't become official until the value of what he owns receives bids and these bids are exchanged for actual money. Tomorrow he will actually receive $1.15B in cash and the remainder of what he owns will receive bids for approximately $19.1B. Until now, no one has been able to place an actual value on what he owns because he has no inventory.

When people claim Charles and David Koch are billionaires, they are referring to the cumulative value of what they own... should it be sold on the open market.

However, unlike Facebook, Koch's revenue is made from the sale of inventory. This inventory has a quantifiable value in and of itself. Additionally, they own vast quantities of machinery and refineries that also have a quantifiable value. Lastly, Koch Industries does have a valuation history: Charles and David bought out their brother's company shares for over a billion in the early 80's.

Add all that together and the Koch brothers would have a street value of well over a billion each... should they sell everything on the open market.

GoMuskies
05-17-2012, 06:10 PM
Even under your standard Zuck's been an "official" billionaire for a long while. Facebook has been trading on SecondMarket for a long time.

And the financing rounds Facebook has done are a lot better valuation history than the '80s buyout of the two unlucky Koch brothers.

GoMuskies
05-17-2012, 06:21 PM
Forbes, by the way, listed Mark 35th with a net worth of $17.5 billion in their most recent rankings. When it comes to counting billionaires, it doesn't get much more official than the Forbes seal of approval.

bobbiemcgee
05-17-2012, 07:54 PM
I see Eduardo Severin renounced his US citizenship to save millions on his tax bill. What a patriot !

Kahns Krazy
05-17-2012, 08:28 PM
Whoever was behind MySpace has to be punching themselves in the testes for being so close to the idea, but about $16 billion away at the same time.

GoMuskies
05-17-2012, 08:35 PM
Whoever was behind MySpace has to be punching themselves in the testes for being so close to the idea, but about $16 billion away at the same time.

How about those Winklevoss clowns? Tomorrow cannot be a happy day for those two.

xudash
05-17-2012, 09:25 PM
How about those Winklevoss clowns? Tomorrow cannot be a happy day for those two.

They're already "of money." Besides, they received a "small" settlement didn't they?

Otherwise, I can't wait to see how this stock performs.

GoMuskies
05-21-2012, 11:36 AM
Facebook is getting pounded today. Facebook is on sale!

Kahns Krazy
05-21-2012, 12:18 PM
Zuickerberg has been married for less than 48 hours and his net worth has dropped nearly $2billion in that time. Take a lesson from that young men.

Masterofreality
05-21-2012, 12:19 PM
Facebook is getting pounded today!

And well it should

outsideobserver11
05-21-2012, 12:23 PM
Zuickerberg has been married for less than 48 hours and his net worth has dropped nearly $2billion in that time. Take a lesson from that young men.

He is now only worth $18 billion? She better try to get out quick, that's not what she signed up for.

GoMuskies
05-21-2012, 12:27 PM
Zuckerberg got married?!? What a dope.

Muskie in dayton
05-21-2012, 12:28 PM
And well it should

Amen to that. Although without facebook, the UC fans would have no evidence to discredit the PLAY accuser. What would they do then?

nuts4xu
05-21-2012, 12:49 PM
Zuckerberg got married?!? What a dope.

Don't these two look "over the moon" happy to be married to each other?

http://blogs-images.forbes.com/carolinehoward/files/2012/05/zuckerberg4.jpg

Kahns Krazy
05-21-2012, 12:56 PM
I'm not even sure they are in the same picture. I've done some photoshops that look more real than that.

I will give the dude some amount of credit for sticking with a long time girlfriend with $20B in the safe. It has to be a little tempting to try the Charlie Sheen lifestyle for a while, and there would be plenty of smokin hot chicks lined up to party with the guy with $20 b's.

blueblob06
05-21-2012, 12:59 PM
Two things -
1- It seems like a weird week to get married. He was in the office HQ the day+night+overnight before the IPO which would've been the day after he got married right? Seems kinda odd. "Hey honey, we can't go on our honeymoon. My company's going public so I have to work for the next 4 days straight. See you when I see you."

2- Did people just today realize Zuck's not going to completely change facebook to monetize it to be worth the actual value the market projected it was? (100 billion or whatever it is) Sure if you're filthy rich and could get in before it went public and pay way less than us commonors, that's one thing. But lots of those people are cashing out this week and in the case of IPOs, it sucks to be anyone other than a super rich person.

GoMuskies
05-21-2012, 01:19 PM
I will give the dude some amount of credit for sticking with a long time girlfriend with $20B in the safe.

I give him zero credit. In fact, I deduct points. He should be having orgies at least two/three times a week.

X-band '01
05-21-2012, 01:22 PM
Facebook is getting pounded today. Facebook is on sale!

You and 4 billion people like this.

bobbiemcgee
05-21-2012, 01:22 PM
I think Zuck played Wall St. pretty good. The original ipo price was going to be $28 which is much more realistic. The "Greed" factor took it to $38. Bad day for the greedy bastards.

GoMuskies
05-21-2012, 01:24 PM
Bad day for the greedy bastards.

When it's a bad day for the greedy bastards, it's also a good day for the greedy bastards.

pickledpigsfeet
05-21-2012, 01:27 PM
Facebook had to go public, it had no choice. Zuckerberg didn't want it, and now the law has since been changed to where they wouldn't have had to go public but it was too late.

http://dealbook.nytimes.com/2011/11/29/facebook-may-be-forced-to-go-public-amid-market-gloom/

http://www.wired.com/epicenter/2012/03/ff_facebookipo/all/1

GoMuskies
05-21-2012, 01:31 PM
Facebook had to go public, it had no choice. Zuckerberg didn't want it, and now the law has since been changed to where they wouldn't have had to go public but it was too late.


Those rules made them subject to the SEC reporting rules. They didn't force Facebook to do an IPO or to list shares on an exchange.

bobbiemcgee
05-21-2012, 01:38 PM
When it's a bad day for the greedy bastards, it's also a good day for the greedy bastards.

Not sure how. Can't short an IPO until Day 3.

GoMuskies
05-21-2012, 01:44 PM
Not sure how. Can't short an IPO until Day 3.

Someone sold those shares at $41. And the underwriters certainly made out. And the lawyers. And the institutional investors and employees who sold at the IPO price.

paulxu
05-21-2012, 01:55 PM
Do you think you'd notice any difference if instead of being worth $15 billion, you were only worth $12 billion?

blueblob06
05-21-2012, 01:59 PM
Do you think you'd notice any difference if instead of being worth $15 billion, you were only worth $12 billion?

I think the main difference would be your name would be an inch or two lower on the page in a couple magazines' lists. That's about it.

bobbiemcgee
05-21-2012, 02:00 PM
Someone sold those shares at $41. And the underwriters certainly made out. And the lawyers. And the institutional investors and employees who sold at the IPO price.

JPM, MS and Nasdaq pretty much botched the IPO and look to be facing large lawsuits. Employees are locked out for 3-6 mos. But you're right about the Lawyers, they always clean up.

http://www.minyanville.com/business-news/editors-pick/articles/MS-FB-LNKD-ZNGA-GSVC-YELP/5/21/2012/id/41124

I watched this stock the last hour on Friday. The underwriters were apparently buying every single share the last hour to keep it @ $38. They have to be taking a huge hit today.

Kahns Krazy
05-21-2012, 02:02 PM
Do you think you'd notice any difference if instead of being worth $15 billion, you were only worth $12 billion?

I had that thought about the marriage. Do you even bother with a Pre-nup? It seems silly to look the woman you're about to marry in the eye and say "It's just for my protection. I need more than $10 billion if we divorce".

GoMuskies
05-21-2012, 02:06 PM
JPM, MS and Nasdaq pretty much botched the IPO and look to be facing large lawsuits. Employees are locked out for 3-6 mos. But you're right about the Lawyers, they always clean up.

Some of the employees were able to offer their shares in the IPO. The company didn't sell any shares in the IPO. Anyone who offered shares in the IPO made out.

And I don't see the underwriters having any issues with lawsuits. Someone may try, but I wouldn't expect any sort of significant dent to be made in their fee haul.

Kahns Krazy
05-21-2012, 02:24 PM
Someone sold those shares at $41. And the underwriters certainly made out. And the lawyers. And the institutional investors and employees who sold at the IPO price.

I saw an article that mentioned that the underwriters got "stiffed" in this deal because they only made about $170 million, or 1.1% as opposed to the more typical 3-4% in an IPO.

The federal government is also looking at a nice payday thanks to the use of RSU's instead of options for pre-ipo employees.

bobbiemcgee
05-21-2012, 02:26 PM
Some of the employees were able to offer their shares in the IPO. The company didn't sell any shares in the IPO. Anyone who offered shares in the IPO made out.

And I don't see the underwriters having any issues with lawsuits. Someone may try, but I wouldn't expect any sort of significant dent to be made in their fee haul.

Doesn't seem profitable to buy for a whole hour for 38 and sell today.

"The underwriter, Morgan Stanley stepped in to support Facebook's stock when it fell toward its $38 IPO price shortly after it opened, a source familiar with the matter told Reuters. The shares spent much of the last hour of Friday trading near that price, with onlookers watching to see if it would post a $37.99 price - which it did not.

But the bank will not support the stock indefinitely, analysts said, and once that firepower is gone, funds that received IPO stock looking for a bounce may decide to bail as well."


Read more: http://www.portfolio.com/views/blogs/money-hunt/2012/05/21/nasdaq-glitches-mar-facebook-ipo-morgan-stanley-rescued-share-price#ixzz1vXA9qZXe

GoMuskies
05-21-2012, 02:27 PM
We'd all like to get "sfiffed" to the tune of $170 million, I'd wager. They obviously wanted the deal enough to sign up for that fee structure.

GoMuskies
05-21-2012, 02:28 PM
Doesn't seem profitable to buy for a whole hour for 38 and sell today.


Fees

bobbiemcgee
05-21-2012, 02:36 PM
Fees is good. Anyway, guess Bono is happy. Loaned them 90 million a few years ago and got stock worth 1.5 BILLION.

XUglow
05-21-2012, 02:37 PM
I don't think the marriage thing is his idea. She seems to be hitting him with some kind of green tractor beam ray to make him hold hands. She is probably some sort of alien that is hiding out on this planet, and she decided to do it in style. He knows that he is a dead man if he doesn't do exactly what she wants.

Kahns Krazy
05-21-2012, 02:54 PM
She seems to be hitting him with some kind of green tractor beam ray to make him hold hands.

I think that's a floating hologram he had installed near his body as part of the instagram acquisition.

XUglow
05-21-2012, 03:30 PM
I actually ran ads on Facebook for a while last year, but it isn't for a company like mine. GetClicky showed me that 75% of my click-throughs from Facebook were bouncing off of my site in less than 10 seconds. That is pretty pathetic.

I love Google. People that want to buy glow things mostly search for that stuff on Google. I try to hit them with my ads. When they click on my ad, most are at some stage of the buying process. My bounce rate is low, and I feel that I am getting my money's worth for my paid clicks.

The Facebook failure made sense after I saw the results. People that are trying to see what people they no longer know are doing aren't likely to go, "Oh yeah, and I need some glowsticks also."

stxxu
05-21-2012, 06:18 PM
Fees

There is a chance that Morgan Stanley's fee was wiped out by losses from propping up the stock price Friday. At the very least they saw a potion of their fee wiped out.

bobbiemcgee
05-23-2012, 03:19 PM
There is a chance that Morgan Stanley's fee was wiped out by losses from propping up the stock price Friday. At the very least they saw a potion of their fee wiped out.

Will be hard to turn a profit with everyone getting sued and a Senate investigation:

http://blogs.barrons.com/techtraderdaily/2012/05/23/fb-gives-up-some-gains-as-investors-sue-senate-calls-for-probe/?mod=barrons_msnhttp://online.barrons.com/article/BL-TB-36612.html?

stxxu
05-23-2012, 06:29 PM
Will be hard to turn a profit with everyone getting sued and a Senate investigation:

http://blogs.barrons.com/techtraderdaily/2012/05/23/fb-gives-up-some-gains-as-investors-sue-senate-calls-for-probe/?mod=barrons_msnhttp://online.barrons.com/article/BL-TB-36612.html?

I really don't think there is much to that (at least as it stands now). Nothing MS did is out of the ordinary for an IPO (like I said, given the facts I have heard so far). The idea that the underwriters were somehow hiding information is ridiculous. They changed estimates based on a change in the prospectus, a document any investor has easy access to. Just because a retail investor doesn't know how to look at a prospectus doesn't mean someone else broke the law.

I also retract my original statement. Stabilizing the offering has apparently netted the underwriters about $100 million in profit.

XUglow
05-29-2012, 11:47 AM
FB is down another $2.50 today. FB has been floating ideas about increasing revenues, and the analysts that I watched this morning were just shaking their heads. One talked about FB's half-baked business plan. Another chimed in that he was insulting people with half-baked business plans. FB is quarter-baked at best.

nuts4xu
05-29-2012, 04:19 PM
FB is quarter-baked at best.

I can attest, quarter baked is not baked at all.....

If you are going to be baked, get baked all the way.