A.
Lock-up releases will likely lead to hundreds of
millions of new shares being dumped on the market over the next six months ...
and Facebook can no longer do a simple "follow-on offering" to manage
this process.
B.
Facebook faces a massive ~$3 billion tax bill
related to its employee stock compensation and can no longer do what it planned
to do, which was sell shares to raise this cash.
C.
Facebook employees now have less incentive to
stay at the company than they did prior to the IPO, which may make retention
more difficult and expensive.
All of these issues could put additional pressure on
Facebook's share price. Let's take each in turn….
Find out more at http://www.businessinsider.com/facebook-lockup-release-2012-8
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