$FB The Facebook Exit – Another Snub of Future Shareholders

There are countless blog posts that explain how Facebook’s Share structure leaves all the power in Mark Zuckerberg’s hands.  In addition, discussing the overvaluation of the company, something that was all to obvious to anyone actually trying to be realistic.

When a company IPO’s, and the share price sky rockets, who loses in that deal?  The initial sellers ie. Mark Zuckerberg.  But in an IPO that ends up going south within a few days, who loses the shareholders that were on cloud nine having the chance to own such as “high potential” company.  Who wins? Mark Zuckerberg.  Today, I would like to say well played sir, he exited at a price that allow him and many others to capture more money rather than leaving money on the table for new investors to be entitled to.

I do not want to argue against the blatant overvaluation of the IPO price, since if they could find so many investors willing to participate so be it.  But long term, this is just another Snub for future shareholders of Facebook.  Not only will they have no control over the company and its decision, but now they will be sitting on a stock that will continue to be underwater until Facebook can prove its worth, and overcome many obstacles.



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