Twitter investors sue Elon Musk and the company over a ‘chaotic’ deal to sell the social network. In their opinion, the statements and tweets of the entrepreneur led to fluctuations in the share price.
Twitter doesn’t object to Elon Musk’s proposal for a trial to end the deal but is concerned he’ll try to delay.
The stock quotes of the world’s largest social network climbed 10% after the publication of the mobile advertising revenue report which grew by 14 percent in the Q3 2012.
According to the report, in the third quarter of this year, the social network increased its total revenue by 32% up to $ 1.26 billion, topper forecasts of the analysts.
As we reported before NASDAQ Will Compensate Facebook IPO Issues, now we know the amount: NASDAQ agrees to pay $ 40 million compensation for the trader’s losses caused by software issues during the Facebook initial public offering.
Nasdaq CEO Robert Greifeld apologized for the problems encountered on May 18.
NASDAQ is ready to pay out compensation to the investors affected by the issues on the Stock Exchange while Facebook’s initial public offering.
NASDAQ mentioned $ 13.4 million compensation amout, but this is clearly not enough: investors estimate their losses from the glitches on the Stock Exchange at about $ 120 million. Total loss is even higher: Facebook’s capitalization fell down more than $ 50 billion after the IPO.
On Tuesday the price of the shares on NASDAQ stock market fell below $ 30 per share – the price dropped another 9.62% down to $ 28.84. The Facebook company value fell by 24%, to $ 61.66 billion since the Facebook IPO on May 18. Investors start talking about “bubble effect” of the social network and that the real level is $ 25 per share.
Facebook IPO scandals continue. Banks – co-organizers of the IPO (Goldman Sachs and JP Morgan) allowed short sell operations for their customers, which also affected Facebook shares fall, reported The Wall Street Journal (WSJ).
They played not only against the Facebook shares investors, but also against the leading underwriter of the IPO – Morgan Stanley, which tried to hold Facebook shares price on the first day of the IPO. Private investors began to take revenge on the social network, without waiting for court decisions: on Friday, someone flooded the article about Facebook in Wikipedia with pornographic images.
Let’s remind that Facebook IPO took place on May 18 with complications on NASDAQ, and Facebook shares quotes started to fall down after the first day of trading. The Friday’s quote is as follows: 31.91$ – 16% lower than the initial offering price.
Facebook launches online apps store with games and other applications intended for use in the social network.
Facebook users can access the Facebook App Center through the Internet and Facebook application for iOS and Android. This should help Facebook to monetize its mobile audience. Now it will be hard to say about Google-Apple monopoly in selling mobile apps.
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.”
Facebook decided to start the initial public offering (IPO) on 18 May, according to the Associated Press. This is considered to be the most anticipated financial event after the Google’s entering the stock market in August 2004.
As reported by the business newspaper The Wall Street Journal, social network Facebook will have an IPO on February 1 supported by the world’s largest bank Goldman Sachs.
