Facebook is organising a party and is going to sell tickets to all of us.
It is a party that we have been waiting to be invited to for long time, but until now, it was restricted only to the company’s founders, key employees and some fortunate investors who had been buying its restricted stocks.
We still don’t know how much of the company will be sold, nor what the price per share will be. We don’t know how markets will behave in the next few months, since a depressed market could jeopardise the success of the initial public offering (IPO). But we do know Zuckerberg and his team are selling tickets worth about US$5 billion. But, isn’t the fact that we are invited a clear sign that the party won’t be as much fun as we thought? Two details make us wonder.
Read more in The Nation
Text: Arturo Bris and Salvatore Cantale, which are professors of finance at IMD in Lausanne.