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Friday, May 18, 2012

Facebook starts public sale of its stock

Report from voanews.com:

FacebookFacebook, the world's biggest social media website, started selling stock to the public on Friday, with its initial $38 share price edging above $40 in the first hours of trading.

Facebook’s chief executive, Mark Zuckerberg, signaled the start of trading on the Nasdaq exchange in New York by remotely ringing a bell from company headquarters across the continent in California.

The popular social networking site, with 900 million users worldwide, raised about $16 billion from the stock sale. That is one of the biggest stock debuts in U.S. corporate history and rivaled only by financial services company Visa and automaker General Motors. The stock offering drove Facebook’s value to at least $104 billion, making it one of the most valuable U.S. companies.

But contrary to some investors’ hopes, the stock price did not soar in the first day’s trading. The share price stayed in a relatively narrow range, topping $42 at one point, then falling back to the opening $38 level before settling above $40 in mid-afternoon trading.

Zuckerberg, who turned 28 earlier this week, started the popular social networking site just eight years ago in his college dorm room at Harvard. As investors bought shares, they became part owners of the company, but Zuckerberg will still control more than 55 percent of Facebook's voting stock.

Some analysts expect millions of Facebook shares will be purchased in the first hours of trading because of the high demand to own part of such a ubiquitous and recognized product. The stock is being traded under the symbol “FB.”

But others are advising clients to wait and see whether the company can still continue to grow and how much advertising it can sell before buying shares.

Facebook’s advertising revenue growth has slowed in recent months, and doubts about its long-term viability were heightened earlier this week when General Motors announced it was pulling its paid advertising off the website.

Facebook has also yet to devise a strategy to attract advertising on mobile devices like smartphones or tablet computers.

Originally published on voanews.com
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Opinion Articles

Free calls, free texts, free data: we talk to Dariush Zand of Ovivo Mobile

Mark Bridge writes:

The idea of a free mobile phone network is a dream for many consumers – and potentially a nightmare for traditional mobile operators. Most notably we saw Blyk launch an ad-funded network in the UK five years ago, with the MVNO closing in 2009 as the company’s business model changed.

In this week’s podcast feature I’ve been talking to someone who’s just launched a brand new mobile service that’s giving away calls, text messages and data in return for advertising. The company is Ovivo Mobile, it launched last month and it’s currently targeting students to sign up.

Author: The Fonecast
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Doro PhoneEasy 515 review

Mark Bridge writes:

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Don’t get me wrong, I hadn’t planned an elaborate ‘theatre-not-journalism’ piece of creative writing and I’m not tied to anyone’s apron strings. I was going to give mum a mobile phone to test.

Author: The Fonecast
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Cortado brings mobile device management to its cloud desktop service

Mark Bridge writes:

Cortado was founded in 1999 as ‘ThinPrint’, with the company’s expansion beyond wireless printing leading it to change its name.

This week it’s expanded even further, combining its cloud desktop services with mobile device management. The result is Cortado Corporate Server 6.0, a new service that enables organisations to offer their staff secure, managed mobile access to corporate files.

Author: The Fonecast
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Last week at The Fonecast: tell 'em about the money, honey

Mark Bridge writes:

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Author: The Fonecast
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Is Facebook killing SMS?

Mark Bridge writes:

Facebook is killing off SMS traffic and SMS revenue for mobile networks, according to a new research note from Strand Consult. It says the ‘golden days’ of messaging growth are over as consumers increasingly use Facebook to keep in touch.

Author: The Fonecast
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