The state of Massachusetts has fined Morgan Stanley $5 million because of the botched Facebook IPO. After Facebook went public this past May, stock traders were riddled with system errors. A lot of people lost money as a result. The company’s stock price opened at around $38 per share and today it is trading at $27. Back in September, the company was trading at as low as $17.79.
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Riverbed Technology announced today that they are planning to acquire Opnet Technologies for $993.3 million in cash and stock. The acquisition will help Riverbed optimize their software on corporate networks. Riverbed will pay $36.55 in cash and 0.2774 of a share for each Opnet share. This is a 34% premium to Opnet’s closing price on Friday.
Facebook is reducing their $3 billion credit line due to a decline in their tax liabilities according to a source with Bloomberg. Facebook will be extending the term of their loan to three years from one year as well. Facebook was able to secure a $3 billion 364-day bridge loan to help fund taxes for employees that exercised their restricted stock units. They also set up a $5 billion five-year revolving line of credit before their IPO in May. Facebook’s tax liabilities are much lower than expected because the value of their stock dropped 45% since the IPO. The credit financing was set up by banks like JPMorgan Chase & Co., Morgan Stanley, and Goldman Sachs Group. [BusinessInsider]
Palo Alto Networks has filed a statement to go public with the SEC this morning. They expect the price of the IPO to be at between $34-$37 per share. Palo Alto Networks plans to sell 6.2 million shares including the 1.5 million from selling holders.
Kayak.com, the hotel and flight search engine company, has filed for a $100 million IPO with a trading range of between $22 to $25 on the Nasdaq exchange. Kayak will trade under the symbol “KYAK.” Kayak will offer four million shares and will raise a maximum of $100.6 million, which is twice as much as their initial filing.
If Groupon accepted Google’s $6 billion offer, it would have been the largest acquisition in Internet history. The acquisition offer was made in the fall of 2010. Groupon was the fastest website to hit $1 billion in sales and was the second quickest growing website behind YouTube to hit a $1 billion valuation. The company is led by 32-year-old Andrew Mason, an inexperienced CEO with a sharp mind, which means that he could have been a billionaire by age 30. Groupon was experiencing rapid growth and Google had a really fat wallet at the time so a sale was attractive to Groupon’s leadership team and venture capital investors.
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The stock price of Facebook Inc. has jumped $1.41 (5%) to close at $29.60 on Thursday. This jump is good news for the company after three consecutive days of decline. Unfortunately Facebook’s stock price is still down 22% since their IPO from two weeks ago. Facebook Inc. went public on May 18 with an opening price of $38. Facebook’s trades on that day suffered from market glitches.
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