Facebook Valued at $104bn (£66bn)
Facebook has priced its shares at around $38 (£24) each which were put on sale in New York on Friday. Demand will be high and early stock investors new to the market are expected to rush in and buy Facebook’s stock. However questions remain about the firm’s ability to generate profits regarding its mobile phone platforms which are being used much more often decreasing its web service, the problem is the apps for mobile devices do not advertise and generate profits.
421 million shares are up for grabs at a price of $34 – $38 each would make it one of the highest value initial public offering, but will Facebook deliver the growth in profits that shareholders are expecting? The new shareholders won’t have much of a say with the shares that are going on offer, ‘A shares’ carry one vote per share, whereas the current shareholders carry ‘B shares’ which have 10 votes.