81 year old billionaire Warren Buffett said that he is not going to buy shares in Facebook but also mentioned that he doesn’t consider Facebook as a second dotcom bubble. “People get excited about companies that have done that well.”
The Daily Telegraph reported Mr Buffett saying: “It is not a bubble… this is not what we were seeing in late 1999 all the way into 2001. We aren’t in any bubble phase of anything.”
The largest investment funds that own shares in Facebook, including Goldman Sachs (one of the underwriters), Accel Partners and Digital Sky, immediately after the IPO will sell a big part of shares in the social network for a total amount of $ 2.68 billion, according to Bloomberg. Microsoft also plans to reduce the presence in the social network. All this tells us about uncertainty of the shareholders in the rapid growth of the company.
Goldman Sachs plans to sell 13.2 million shares of Facebook for the amount of $ 461.6 million, the fund Digital Sky – 26,3 million shares for the amount of $ 919 million. The founder of the social network, Mark Zuckerberg, expects to receive $ 1.1 billion for 30.2 million shares. And finally Accel Partners – $ 1.3 billion.
Yesterday the Facebook company published an updated emission document on the site of the U.S. Securities and Exchange Commission (SEC), which determined the value of 28-35 dollars for one share on the NASDAQ exchange, so the value of the company after the IPO can reach 77 – 96 billion dollars. According to the document, the IPO will take 10% of shares for the total amount of $ 12 billion. Goldman Sachs and Accel Partners representatives refused to comment it.
