Friday, January 20, 2012

Wall Street 'Likes' Facebook IPO, But It's a Hard Climb From Private to Public (Tech Bubble 2.0?)

Reuters reports that investors are hungrily anticipating what is expected to be the biggest initial public offering for a tech company in history. But the imperviousness to criticism that helped the website become a global sensation can be a drawback for a publicly traded company. As the IPO hiccups of Groupon, Zynga and others have demonstrated, there are big differences between a Silicon Valley supernova and a Wall Street darling.

When Mark Zuckerberg and his cohorts open their books to the public, they will face a new and less-patient constituency of investors, many of whom will be more interested in short-term share price than in building a constantly evolving company.

Zuckerberg has demonstrated his business acumen with Facebook's growing revenue and user base of more than 800 million people. But investors might prefer a CEO who is more press-friendly than the sweatshirt-wearing, socially awkward Zuckerberg. They might also be put off by challenges from privacy watchdogs and major players like Google….

Read more at http://www.reuters.com/article/2012/01/20/idUS12812494120120120

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