Stock exchanges and brokerages have been gearing up for one of the biggest initial public offerings on record; as shares in Facebook went on sale today in the US.
Facebook raised the price on it’s initial public offering from $28-$35 to $34-$38 a share, [UPDATED] Shares in the social networking site rose to $42, before falling back to trade flat; in response to strong demand from individual investors, leaving the social-networking company with a $104bn valuation (£66bn). This means Facebook’s founder, Mark Zuckerberg, will have a stake valued at $19bn; confirming him as one of the richest men in the world, as well as fellow founders Dustin Moskovitz, Eduardo Saveri and former employee of Facebook Sean Parker (Napster founder) becoming overnight millionaires.
[UPDATED] US venture capital firm Accel Partners and Russian internet investment group Digital Sky Technologies now hold significant stakes in the mega social platform, whilst U2′s Bono and software giant Microsoft also stand to make a vast profit on their investment in the company.
[UPDATED] Facebook’s owners are releasing just under a fifth of the company’s total shares, about 421 million, which could raise about $18bn. Facebook’s valuation means the social network site is worth about the same as internet shopping giant Amazon, and more than the value of the likes of Disney. The initial public offering (IPO) of the shares is the third-largest in US history, after the financial giants Visa and General Motors.
Although, the companies high valuation has fuelled growing doubt and criticism over whether they will be able to develop enough new and effective advertising tools and whether they’ll be able to create an effective revenue stream for the increasing number of users who access the social network via mobile devices.
Facebook also faces concerns over privacy.
On Friday a law suit was brought against the company in the US for “improperly tracking the internet use of its members even after they logged out of their accounts”.
Warnings have been previously issued to Facebook about the possible impact of evolving legal protections across the world on consumer privacy; specifically a revision to the European Union’s privacy laws.
Consumer privacy & data protection protocols at Landlord Referencing explained here.
At Landlord Referencing we believe that the future of business lies within social platforms specialised for specific groups, that can also provide a unique product. Facebook was created for the purpose of socialising and Google was created for the purpose of providing internet-related products and services; therefore the sceptics out there are now asking :
‘ Can combining these two elements really work? ‘
Landlord Referencing Services was primarily created to protect landlords from bad tenants and to stop good tenants having to live with bad neighbours, via online Lifestyle Referencing. But since we have been taking on Sponsors to support our free network our landlords and letting agents are now visiting the website not only to use our referencing system but to find trusted services. This is because they are fully aware that if they use these specialist Landlord Services that it will keep their unique referencing services free. This in-turn protects us all from the pit-falls brought about by habitually bad tenants, bad legislation and strengthens the community.
So, our answer to the sceptics out there is a firm YES! IT REALLY CAN WORK!