Mail.ru, which owns a stake in Facebook, has set the price it hopes to get for its shares when it floats on the London Stock Exchange. The Initial Public Offering was announced earlier this month. Today's filing with the London Stock Exchange shows an indicative price range of between $23.70 and $27.70 per share, actually a …
we are owning all your identities
Holy bleeping $deity. Wall Street really will buy /anything/, won't they? Does Facebook even have a revenue stream that comes closet o covering their expenses? In what universe is Facebook worth $5.7B?
Facebook is turning a profit now, and has for a while. Now that it has no burn to contend with, it is just a matter of "pouring gas on the hockeystick", as Google would say.
As far as "Wall Street" will buy anything, Wall Street doesn't really buy anything. They buy things on behalf of people like you, and take a commission. As Warren Buffet says, "take advantage of market folly" (to make money). I can only image what the firms who are taking the lead on this IPO will personally make. 5% probably. And probably more, and they probably get huge bonuses if the stock rises after the IPO (to discourage traders from shorting their own stock, and then dumping it to drop the price).
$200 millions for 1.96%, that's just above $10 billions valuation... looks like they are going to loose half of their money and that's if they find people stupid enough (in my opinion) to buy a company that makes no/little money, selling advertisement with a freetard user base...
Why so cheap?
Quick calc: they valued Facebook at 10bn when they bought the stake.
I wonder why they would sell for half the cost??? Am i missing something?
Welcome to the world of finance...
Where you can found WebStuff.com, create 100M shares, sells one to your dog for 10 bucks and be an instant billionaire.
I thought this insanity was over after 2000...