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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

4G doesn't come to Three

Mark Bridge writes:

Earlier today, Three.co.uk published a blog post headlined “4G comes to Three”. But it hasn’t.

I spent most of this morning here at Mobile World Congress muttering about the blog before returning to it this afternoon. And suddenly it’s changed.

The blog post remains. The headline is completely different. Now we’re told “Three to launch leading edge 3G service”.

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How far does it go, mate?

Geoff Varrall of RTT writes:

About 15,000 years ago some indigenous Northern Australians decided that they needed a more efficient way of talking to each other than just shouting a lot.

And blowing into a long cylindrical tube proved to be just what was needed and seriously useful fun – the dawn of the didgeridoo.

Trumpets and bagpipes were invented at about the same time. The ancient Greeks used the trumpet in battlefield communication to devastating effect.

The way you can tell that your didgeridoo is better than everyone else’s didgeridoo is to blow into it and see how far the sound goes.

Author: The Fonecast
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Last week at The Fonecast: 20th February 2012

Mark Bridge writes:

Any sufficiently advanced technology is indistinguishable from magic. So said Sir Arthur C Clarke.

Last week’s magic was supplied by imaging company Scalado, which announced a new product called ‘Remove’. The clue’s in the name: it can automatically remove unwanted people from photos taken on a mobile phone. Expect to see it on a handset near you before too long.

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Last week at The Fonecast: 13th February 2012

Mark Bridge writes:

It’s not been a good week for Nokia staff, with 4000 of them likely to lose their jobs from factories in Finland, Hungary and Mexico. The company says it’s moving device assembly to Asia, where it’ll be closer to component manufacturers. The three scaled-down factories will remain open with a new focus on smartphone customisation.

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Could a new legal framework for FRAND principles end the mobile patent wars in 2013?

Mark Bridge writes:

I’m not the first person to point out that mobile phone patent battles are raging all around us. They’ve been going on for years.

However, the topic of FRAND patents - those designated as ‘industry standards’ and therefore required to be licensed on Fair, Reasonable And Non-Discriminatory terms - has become an increasingly newsworthy topic.

In the last couple of weeks we’ve reported on an EC investigation into Samsung’s licensing of mobile patents and a Motorola/Apple legal battle that involves FRAND licensing.

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