For most people in their mid-twenties, a typical New Year's resolution would be to lose some weight or even find a job. But for Facebook's mastermind, Mark Zuckerberg, the goals are certainly more cosmic. How about start the year with a $500 million investment that has a valuation of $50 billion? Yes, it's hard to top that.

Then again, Facebook is a game-changer in the same league as eBay (EBAY) or Google (GOOG). And investors are clamoring to get a piece of the action.

Continue reading Is Goldman Angling for a Facebook IPO?

Is Goldman Angling for a Facebook IPO? originally appeared on BloggingStocks on Mon, 03 Jan 2011 14:30:00 EST. Please see our terms for use of feeds.

Continue reading Facebook Ownership in Question as Man Claims 84% Stake

Facebook Ownership in Question as Man Claims 84% Stake originally appeared on BloggingStocks on Wed, 14 Jul 2010 12:00:00 EST. Please see our terms for use of feeds.

Continue reading Zuckerberg in 'No Rush' for Facebook IPO

Zuckerberg in 'No Rush' for Facebook IPO originally appeared on BloggingStocks on Thu, 04 Mar 2010 14:00:00 EST. Please see our terms for use of feeds.

If Mark Zuckerberg knew then what he knows now ... Facebook would be more like MySpace, which is now owned by News Corp. (NWS). And, he's willing to admit this in public.

In a six-minute on-stage interview with TechCrunch, Zuckerberg went on at length about the social media platform's privacy settings, which have been the subject of unending debate. He says that he'd make more data public by default if he could start Facebook again. Though Zuckerberg cites Internet trends that indicate a reduced concern with privacy, the real reasons are more likely financial.

Continue reading Facebook Wants to Be MySpace

Facebook Wants to Be MySpace originally appeared on BloggingStocks on Mon, 11 Jan 2010 10:40:00 EST. Please see our terms for use of feeds.

Facebook is implementing a new stock structure to make sure the founders retain control, immediately causing rumors about an impending initial public offering. Why would Facebook need Class A and Class B shares otherwise? Under the new structure, which is similar to Google's (GOOG), Mark Zuckerberg and other early entrants wouldn't have to worry about yielding the floor to outsiders when if the company goes public.

The stock structure was adopted to ensure that existing shareholders keep control on voting issues, according to Facebook statement. No details were given as to who the winners are in this arrangement, but a Wall Street Journal report says that, according to its sources, all current shareholders would be converted to Class B shares, which carry 10 times the voting rights of Class A shares.

Continue reading New Facebook share structure hints at IPO

New Facebook share structure hints at IPO originally appeared on BloggingStocks on Wed, 25 Nov 2009 08:30:00 EST. Please see our terms for use of feeds.

A look at the lives of the Forbes 400 implies that the most important attribute is the ability to sift through ambiguity. Contradictions abound, meaning that shades of gray hold the answer to your burning desire for riches. Should you go to a great school? Well, yes ... but only if you're going for an MBA and plan to work for a major financial firm. But, you can still go to an Ivy League school if you're not studying finance but join Skull and Bones. Of course, dropping out of Harvard can be a great way to launch a career in the technology field.

It's tricky. There are no easy answers. But, the road to billions is littered with the corpses of aspiring magnates who thought it wouldn't be difficult. So, don't just read the seven attributes after the jump. Understand them. Read them twice. Then, your future financial situation will be assured.

Or, you can just do one of those chain e-mails and wish for wealth.

[Thanks, Forbes and MSNBC]

Continue reading Seven characteristics of the rich and famous: A blueprint to uber-wealth

Seven characteristics of the rich and famous: A blueprint to uber-wealth originally appeared on BloggingStocks on Mon, 05 Oct 2009 17:00:00 EST. Please see our terms for use of feeds.

Marc Andreessen was only in his early 20s when he changed the world forever. Of course, he helped to create the Mosaic browser and was the cofounder of Netscape Communications (he even was on the front cover of Time).

No doubt, he learned some important lessons - especially during the dot-com bust. In fact, he has been able to deal with the adversity, having created such great companies as Opsware - which was sold to Hewlett-Packard (NYSE: HPQ) recently for $1.6 billion.

Well, now Andreessen is going to help another tech wunderkind: Mark Zuckerberg, who is the mastermind of Facebook. That is, Andreessen will join the company's board.

While such maneuverings are often cosmetic, I think this move is more substantive. Talking to a variety of Silicon Valley VCs, there's much skepticism about Zuckerberg's capabilities. Besides, is social networking really going to be a platform that can be monetized effectively - and justify the rich valuations?

No doubt, Andreessen understands the pressures and the importance of making key strategic decisions. So all in all, this looks like a pretty savvy move for Facebook.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates MergerBook.com.

Marc Andreessen becomes a big-time friend of Facebook originally appeared on BloggingStocks on Tue, 01 Jul 2008 12:28:00 EST. Please see our terms for use of feeds.

Gawker reports that Ben Mezrich, a Harvard graduate and author of a 'non-fiction' account of MIT students making it big in Las Vegas, has received a million dollar contract to write a book about Facebook. Mezrich's book proposal claims that his source co-founder, Eduardo Saverin, anticipated a Fall 2008 IPO for Facebook. But Facebook denies the claim. To go public this fall, Facebook would have had to register by now.

Here are some other story elements from Gawker:

• Founder Mark Zuckerberg and Severin started Facebook to help get into an exclusive Harvard Final club
• They also thought Facebook would boost their social life
• In high school, Zuckerberg got on an FBI list for accidentally hacking into a government site
• Zuckerberg and Severin "ate koala on the yacht of the CEO of Sun Microsystems" (NASDAQ: JAVA)

Meanwhile Zuckerberg has sued Saverin, claiming "Saverin tried to hijack the company by freezing its bank account when Facebook desperately needed cash in its formative months." And Saverin countersued for a return on his initial investment.

Continue reading Will Facebook IPO this fall?

Will Facebook IPO this fall? originally appeared on BloggingStocks on Thu, 22 May 2008 08:56:00 EST. Please see our terms for use of feeds.

Facebook to settle lawsuit on its origins originally appeared on BloggingStocks on Mon, 07 Apr 2008 13:59:00 EST. Please see our terms for use of feeds.

Facebook founder and CEO Mark Zuckerberg appeared on 60 Minutes on Sunday with a message that may be disappointing for investors looking for a piece of the red hot social networking site: An IPO this year is "highly unlikely".

Zuckerberg, who is worth a reported $3 billion, says he lives in a one-bedroom apartment with a mattress on the floor, and is CEO of a company with 400 employees.

Last year, Microsoft (NASDAQ: MSFT) bought 1.6% of the company for $240 million, but doesn't seem ready to take the next step anytime soon:

"I think what I can announce is that it is highly unlikely that we will go public in 2008. And when going public makes sense to do, we'll do that. And maybe that's two years out. Maybe it's three years out."

In spite of Facebook's huge popularity, there is concern that Zuckerberg and company have not yet found a way to monetize it successfully and turn it into a wildly profitable venture. It may be that Facebook plans to wait to go public until it finds a way to do that and score a higher valuation.

But long-term, I see the company's decision not to rush into an IPO as bullish. If Zuckerberg wants to cash out, he could do it right now and and get a nice bed for his mattress. His decision to keep the company private demonstrates a long-term commitment and optimism that the company will be as highly regarded 2 or 3 years down the road as it is now.

Facebook IPO for 2008? Founder says it's unlikely originally appeared on BloggingStocks on Mon, 14 Jan 2008 11:57:00 EST. Please see our terms for use of feeds.

If half the stuff published about Facebook founder Mark Zuckerberg is true, the 23-year-old Harvard dropout is a major league kook. But he's also one of the most important entrepreneurs of the past 20 years.

People -- including me -- thought he was nuts when he turned down a $1 billion buyout offer from Yahoo Inc. (NASDAQ: YHOO) and a $750 million one from Viacom Inc. (NYSE: VIA). It turns out that Zuckerberg got the last laugh. In October, Microsoft Corp. (NASDAQ: MSFT) agreed to invest $240 million for a 1.6% stake in Facebook in a deal that values the company at $12 billion.

Zuckerberg also reportedly drove the suits who wanted to buy his company bananas for, among other things, delaying meetings in order to spend time with his girlfriend. But he knows his user base. When Facebook users revolted over the company's Beacon advertising program, he admitted the company screwed up, saying on his blog "we simply did a bad job with this release, and I apologize for it." Now, users who don't want to participate in Beacon can opt out of it.

But like all great entrepreneurs, Zuckerberg has a gigantic ego and is attracting his share of nasty lawsuits. The New York Times recently reported that Facebook tried to get the magazine 02138 to remove documents from its website related to a lawsuit against that claims Zuckerberg "stole the idea and some of the computer source code for Facebook from some fellow students."

Let me make a not so bold prediction and say that this case will be settled sometime next year. The settlement amount will be considerable and kept confidential, allowing Zuckerberg to continue tinkering with his company, enabling him to wreak havoc in the media world for years to come.

He's got plenty of time to make and lose several billion before he turns 30.

Be sure to check out more Money Winners of 2007.

Money Winners of 2007: Facebook's Marc Zuckerberg calls the shots originally appeared on BloggingStocks on Fri, 14 Dec 2007 12:35:00 EST. Please see our terms for use of feeds.

DealBook reports that Google Inc. (NASDAQ: GOOG) is shoving more chips to the middle of the table in its battle for a stake in Facebook.

Facebook's investors, which include Accel Partners and Greylock Partners, want a deal that values Facebook between $10 billion and $15 billion. That would mean that Microsoft Corp. (NASDAQ: MSFT) or Google would have to fork over $1.5 billion for a 5% to 10% stake.

Who will win this Facebook face-off? Google wants to raise the price so high that Microsoft will walk away. But Microsoft is said to be willing to pay any price to keep Facebook away from Google. We'll know who wins in 24 to 48 hours.

But we won't need to wait that long to find the real winner -- Facebook CEO Mark Zuckerberg and his investors are guaranteed to make big bank on this deal regardless of who wins the Google-Microsoft face-off.

Update: The New York Times reports that Microsoft won the Facebook face-off -- paying $240 million for a 1.6% stake -- valuing Facebook at $15 billion. That's 100 times its expected $150 million in 2007 revenue -- valuing $1 of Facebook's sales at 7.1 times more than a dollar of Google's -- whose Price/Sales (P/S) ratio is 14.1 -- and 17.5 times that of Microsoft's which sports a P/S ratio of 5.7. It looks like the old school Harvard ties paid off (that's where Gates, Ballmer, and Zuckerberg attended college).

Peter Cohan is President of Peter S. Cohan & Associates, a management consulting and venture capital firm. He also teaches management at Babson College and edits The Cohan Letter. He has no financial interest in Google or Microsoft.

Google ups the ante in Facebook face-off with Microsoft originally appeared on BloggingStocks on Wed, 24 Oct 2007 13:07:00 EST. Please see our terms for use of feeds.

For those of you who didn't follow the internet bubble, let me just clarify something: The suggestion that a company could be "the next GeoCities" is not a compliment. It's sort of like being "the next Ryan Leaf" or better, "the next Pets.com."

But The Wall Street Journal's Dennis Berman (subscription required) makes that suggestion. GeoCities got off to a hot-start but withered after Yahoo! (NASDAQ: YHOO) paid $4.7 billion for the unprofitable site. Yahoo! focused on building traffic and neglected innovation and today, Geocities is mainly a memory.

While there have been reports that Microsoft (NASDAQ: MSFT) is in talks over spending up to $500 million for a 5% stake in the company (giving Facebook a total value of $10 billion), you have to think that the site's founder, Mark Zuckerberg, is wary of selling out to a larger company.

Continue reading Is Facebook the next GeoCities?

Is Facebook the next GeoCities? originally appeared on BloggingStocks on Tue, 25 Sep 2007 16:05:00 EST. Please see our terms for use of feeds.

No doubt, Facebook is one of the internet's hottest startups. The company has raised gobs of venture capital, has deals with companies like Microsoft (NASDAQ: MSFT), and is often rumored to go public or be bought out.

The company's founder, Mark Zuckerberg, is just in his early twenties, fresh from Harvard. Over the past few months, several of his recent classmates have made claims that they are the real owners of the Facebook concept.

Such disputes are very common for early stage companies. And it's also common for these companies to be sloppy in protecting themselves from legal claims.

So what can be done?

Continue reading Entrepreneur's Journal: Facebook's lessons on intellectual property

Entrepreneur's Journal: Facebook's lessons on intellectual property originally appeared on BloggingStocks on Sun, 09 Sep 2007 13:10:00 EST. Please see our terms for use of feeds.

Do Skype and eBay make sense together? originally appeared on BloggingStocks on Tue, 21 Aug 2007 13:26:00 EST. Please see our terms for use of feeds.