Tag Archives: Facebook
Morgan Stanley Banker Michael Grimes Getting Put On The Spot
After Facebook’s stock price dropped from $38 to below $32, Morgan Stanley investment banker Michael Grimes has been put on the spot. Grimes, co-head of the global technology banking at Morgan Stanley, has been capitalizing off of Silicon Valley companies since the mid-1990s. Facebook CFO David Ebersman relied heavily on Grimes’ advice during the IPO process. The two live a couple of miles apart and it was Grimes that counseled Ebersman to boost Facebook’s IPO price to $38 and increase the number of shares before the IPO.
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Categories David Ebersman, Facebook, Michael Grimes, Morgan Stanley, Stan Meresman
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How Facebook Fights Spam
Facebook has roughly 900 million users and the social network is constantly being flooded by spammers. The Verge interviewed Facebook’s security experts to find out how the social network remains protected.
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Categories Facebook
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Facebook Launches A Standalone Mobile App Called Facebook Camera
Facebook has announced a new app called Facebook Camera. Facebook Camera is a mobile app that makes using Facebook photos app faster and easier. After you launch the app, you will see a feed of photos from your friends. You can swipe to see more of any album or tap to see an enlarged individual photo.
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Categories Facebook, Facebook Camera
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Definition 6 Launches Facebook Timeline Movie Maker
If you have a Facebook Timeline and want to make a movie out of it using photos, videos, and status updates, Definition 6 has created a website called Timeline Movie Maker. After granting Definition 6 access to your Timeline, the company creates a one-minute chronological video of some highlights from your profile with some awesome music. After seeing the video with hand-picked footage, users can customize the video by choosing the visual elements and songs.
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Categories Definition 6, Facebook
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Capital Research & Management and Fidelity Investments Knew About Facebook’s Business Weaknesses Sooner Than Other Shareholders
An executive at Facebook had reportedly told analysts that Facebook’s business was weaker than what everyone thought. This information was provided to large investors, but not smaller ones. The Wall Street Journal has reported that that Capital Research & Management wanted to buy into the Facebook IPO, but an underwriting bank on the deal warned them about Facebook’s revenue prospects being lower. Capital Research then slashed the number of shares that they planned on buying and a manager from the company told a banker at Morgan Stanley that the deal’s pricing was “ridiculous.” Fidelity Investments was another big client that was told by analysts of Facebook’s declining financial situation. Fidelity expressed their frustration to Morgan Stanley about Facebook valuations.
Facebook and Banks Being Sued Over IPO
Facebook Inc. (NASDAQ:FB) and banks that include Morgan Stanley are being sued by the shareholders that claimed the defendants weakened growth forecasts ahead of the $16 billion IPO. The defendants including Facebook CEO Mark Zuckerberg are being accused of concealing “a severe and pronounced reduction” in revenue growth forecasts, which resulted from increased use of its app through mobile devices. The lawsuit was filed in the U.S. District Court in Manhattan. In this case, shareholders are saying that research analysts at several underwriters lowered business forecasts for Facebook during the IPO process, but the changes were “selectively disclosed by defendants to certain preferred investors” instead of to the public.
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Categories Facebook, Mark Zuckerberg, Morgan Stanley
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Facebook Settles Sponsored Stories Lawsuit
Facebook has made an agreement to settle a lawsuit involving “Sponsored Stories.” Sponsored Stories is a feature that publicized the “likes” of users without compensation or the ability to opt out. The class action lawsuit was filed at a federal court in San Jose, California. The settlement terms are unknown.
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Categories Facebook, Judge Lucy Koh, Lucy Koh
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Facebook Starts Testing New Timeline
Facebook has started testing out a new look for the Facebook Timeline. The new design of the Facebook Timeline has a subtle change that involves moving the user’s name, home location, occupation, and education on top of the “cover photo.” The text is in white, but this could be an issue for people that have a photo with a white background unless the text automatically turns black in those cases. The new Timeline has a new tab on a user’s profile that says “Summary.” Summary shows a list of major Life Events for that user. The “Likes” section of a user’s profile is renamed to “Favorites.” It is unknown whether this new design will become the standard or if it will be completely scrapped.
Categories Facebook, Facebook Timeline
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Morgan Stanley Cut Facebook’s Revenue Estimates Right Before IPO
During Facebook’s investor roadshow before the company IPO, lead underwriter Morgan Stanley delivered the news to clients that revenue forecasts were being reduced by the company. This could have been one of the reasons for the weak performance of Facebook shares between Friday and today. The $38 per share value valued Facebook at $104 billion.
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Categories Facebook, Morgan Stanley, Scott Devitt
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Facebook Share Price Dropped Over 13% On Second Day Of Trading
Over this past week, Nasdaq CEO Robert Greifeld acknowledged that he was embarrassed over the technical glitches in terms of the Facebook IPO. Today Facebook’s shares dropped over 13% and is currently trading at $34.10. Facebook’s share price closed at $38.23 on Friday. The reason why Facebook’s share price did not drop below $38 on Friday is because the underwriters stepped in and bought millions of shares to stabilize it. On Friday, Facebook’s market cap was around $104 billion and the share price caused it to fall to about $93 billion.
Categories Facebook, NASDAQ
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