Search

Results

Goldman Sachs likes Facebook

09 Jan 2011 - Preaching the News for Sunday

As we celebrate the Baptism of the Lord this Sunday, the readings make clear Jesus’ favored status in the eyes of God: Peter preaches that God anointed Jesus with the Holy Spirit and power, while Isaiah speaks of him as the chosen one, and, echoing Isaiah, the gospel describes a voice from heaven that proclaims Jesus “the beloved son, with whom I am well pleased.” Facebook president and CEO Mark Zuckerberg has gotten somewhat similar treatment in recent weeks. A short while after being chosen as TIME magazine's “Man of the Year” for 2010, Zuckerberg received the endorsement of Wall Street in the form of a $500 million investment by Goldman Sachs and a partner company. Goldman plans to raise at least $1.5 billion more for Facebook from private investors in a deal that is raising eyebrows at the Securities and Exchange Commission (SEC). In fewer than seven years Zuckerberg has developed a website visited by a twelfth of the world and has helped change the way people communicate online, which is why TIME singled him out. And this week he struck a deal with Goldman to create an investment vehicle that allows hundreds of wealthy investors to buy equity in Facebook, potentially blurring the line between public and private companies. Current SEC regulations require companies with 500 or more shareholders to publicly disclose certain financial information to give investors an idea of the risks they face when they buy stock. In light of the special investment vehicle created for the Facebook deal, the SEC is taking a hard look at whether disclosure rules need to change now that hundreds of investors are buying into privately held Internet companies without those companies being obligated to make public disclosures. Source: Articles by Jessica Guyenn for the Los Angeles Times and Jean Eaglesham and Aaron Lucchetti for the Wall Street Journal

facebook goldman sachs baptism of the lord mark zuckerberg securities and exchange commission sec

Restricted
Analysts to investors: Don’t rush to “like” Facebook

20 May 2012 - Preaching the News for Sunday

The readings for the Solemnity of the Ascension are uplifting in every sense of the word: They tell how God showed great might in raising Christ from the dead and how the disciples enjoyed 40 days of revelation and instruction before the risen Lord ascended to the heavens. Investors eager to buy into Facebook when shares become available can expect to see the stock price skyrocket the first day or two, but analysts advise it may be best to wait to buy. Just days before Facebook was set to go public through an initial public offering (IPO), General Motors Co., highlighting the risk in buying Facebook stock early on, will stop paying for advertising on Facebook after deciding that paid ads on the site have little impact on consumers' car purchases, according to a GM official. The move by GM, one of the largest advertisers in the U.S., puts a spotlight on an issue that many marketers have been raising: whether ads on Facebook help them sell more products. Facebook’s IPO could put a market value on the company of as much as $104 billion. “This is about whether you are going to take your money and transfer it to Mark Zuckerberg,” said Lee Munson, who runs the asset management firm Portfolio LLC. Munson calls the offering “one of the biggest transfers of wealth in market history.” Zuckerberg will maintain effective control after the offering, with around 55 percent of the voting rights, and Munson has concerns about his wholehearted embrace of “the hacker lifestyle” that may not necessarily align with the interests of shareholders. “Who is going to boot [Zuckerberg] out if he’s not running the company the right way?” Munson asked. The important thing for most investors to remember, Munson believes, is that there will be an opportunity in the future to buy Facebook at a fair value if the growth potential bears fruit, “when it matures and figures out how to make money.” A pre-IPO report on Facebook from Morningstar echoed that assessment. Analysts said “the enthusiasm for Facebook is not misplaced, but the market may be underestimating several near-term challenges for the company.” Sources: Articles by Sharon Terlep, Suzanne Vranica, and Shayndi Raice for the Wall Street Journal, Steve Shaefer for Forbes, and Olivia Oran and Alexei Oreskovic for Reuters

general motors investment facebook mark zuckerberg stocks ipo

Restricted
Facebook founder faces disgruntled investors

16 Jun 2013 - Preaching the News for Sunday

In the reading from 2 Samuel this Sunday, King David is found at fault and admits wrongdoing in the death of Uriah and the possession of his wife. Facing accusations of wrongdoing at a stormy meeting with disgruntled shareholders, Facebook founder and CEO Mark Zuckerberg said that while he was disappointed in the stock price, he believed the company was making the right decisions.With Facebook stock trading nearly 37 percent below its initial offering price, Zuckerberg fielded a litany of angry comments from investors at the company's first annual meeting since it went public in May of 2012. One investor called the stock a "disaster." Another lamented that as a fan of Zuckerberg's, he "blindly" invested money for his son's education.Anticipating a high level of discontent, Zuckerberg assured investors before the question-and-answer session began that "we're disappointed with the performance of the stock over the last year." He defended the company's strategic direction, however, saying its mobile advertising business is going strong. "Nothing in that has made me think that the fundamental strategy is wrong," he said.At the close of the shareholder meeting, Zuckerberg was handed a reprieve from the collective chiding. "I'm not asking a question. I'm telling you: You are wonderful," one elderly investor said. Zuckerberg thanked her.Homily hint: Apropos of the previous article on privacy concerns, Facebook is a prime example of a company that only makes money if it successfully exploits personal data gleaned from its users. Encourage members of the congregation to use social media networks with caution, aware that their privacy is not the company’s priority. Younger people especially need to be made aware of the risks involved in putting their lives online. Source: An article by Jessica Guynn for the Los Angeles Times

facebook mark zuckerberg stocks shareholders

Restricted
Working for a truly worldwide web

25 Aug 2013 - Preaching the News for Sunday

This Sunday’s psalm makes it clear that the Good News goes out not only to a select few but to all the world. With a similar vision for the reach of the internet, Facebook CEO Mark Zuckerberg announced Tuesday the formation of a partnership with Samsung Electronics, Nokia, Qualcomm, and other corporations to make internet access available to everyone on earth.About 2.7 billion people, one-third of the world's population, currently have internet access. The new group—internet.org—intends to make the internet an option for the other 5 billion people on the planet, regardless of financial means."There are huge barriers in developing countries to connecting and joining the knowledge economy,” said Zuckerberg in an online post. “Internet.org brings together a global partnership that will work to overcome these challenges, including making internet access available to those who cannot currently afford it."The founding members of internet.org—which also includes Ericsson, MediaTek, and Opera—will develop joint projects, share knowledge, and mobilize industry and governments to bring the world online, according to Zuckerberg.Unlike Google’s Project Loon, designed to better connect the planet through a network of high-flying balloons, the internet.org plan seems to focus largely on expanding and improving current network technology to wire the unconnected parts of the world.As altruistic as the motives may be, observers point out it’s more lucrative for all the companies involved in the initiative to have more people using the internet and the Web in their daily lives. Networking and component companies would be laying the infrastructure for better internet around the world; mobile and other device manufacturers and online service firms would also reap the benefits.Homily hint: Internet access is one of many markers that distinguish the “haves” from the “have-nots” in this world of inequality. We tend to take so much for granted—drinking water, electricity, food, shelter, clothing, let alone online access—that many in the world struggle to obtain or gain access to. While we can’t end inequality single-handedly, we can each make a difference, especially when we work in community. How can your community help alleviate hardship? Sources: Articles by Jon Swartz for USA TODAY and Hayley Tsukayama for the Washington Post

internet mark zuckerberg inequality internet access internetorg

Restricted