Friday, August 10, 2012

Facebook CFO Said to Meet Investors Before Lockup Expiration


Facebook Chief Financial Officer David Ebersman is meeting with investors in New York today, a person familiar with the matter said, days before the lifting of a ban on stock sales by some of the company’s biggest shareholders, Businessweek told us..

The person asked not to be identified because the meetings are private. Through yesterday, Facebook had tumbled 45 percent since the company sold shares at $38 in a May 17 initial public offering. The lockup on the first block of shares held by insiders expires on Aug. 16.

Facebook, which hasn’t closed above the IPO price since its first trading day, needs to reassure investors that it can increase revenue from advertising as more of its almost 1 billion users access the social-networking service on mobile phones, said Victor Anthony, an analyst at Topeka Capital Markets in New York, in an interview.

“Investors who bought into the IPO have lost billions of dollars,” Anthony said. “He needs to get out there and tell the story of how he’ll drive revenue growth…..”

Read more at: http://www.businessweek.com/news/2012-08-10/facebook-cfo-said-to-meet-investors-before-lockup-expiration#r=bloomberg

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