Next Media Animation Takes On Facebook IPO

    May 18, 2012
    Chris Richardson
    Comments are off for this post.

Come for a childlike Mark Zuckerberg riding a bull down Wall Street and stay Goldman Sachs shaking people down–literally–for whatever’s in their pocket. Then there’s this pertinent question: “if Facebook is worth owning, then why did company insiders dump $9.2 billion in shares?”

Of course, the answer to that can be found within the question itself–“Just got paid. It’s Friday night…” Take a look around, especially if you’re in NYC and you might see the newest members of the billionaire club rolling around Wall Street in hoodies, playing on their iPhones. However, NMA goes a little deeper, suggesting Facebook is not a viable business. To illustrate their point, NMA points out that GM cancelled their multi-million dollar advertising campaign that was supposed to rollout on the Facebook platform.

Unfortunately, they are overlooking the one thing Facebook can sell. In other words, the product that turns the social media platform into a viable business: its members. That has always been Facebook’s selling point. The platform itself is not being sold. Instead, the people that inhabit Facebook’s world are. Case in point, if Facebook had 900,000 members instead of 900 million, would their IPO been anywhere near as successful?

[H/t to GeekOSystem]

  • http://www.andreasmoser.wordpress.com Andreas Moser

    I warned you not to buy any Facebook shares: http://andreasmoser.wordpress.com/2012/05/18/dont-buy-facebook-shares/ !
    Hopefully you guys listened to my advice.

  • Renaldo

    I don’t understand the ‘joke’ (?) about Goldman Sachs “shaking down” people for whatever is in their pockets? After all, Sachs is an underwriter, which means they put their money up. In other words, they are the ones taking the risks with their own money. Not the money in ‘other folks” pockets. Is it possible the creators of this piece don’t know a thing about finance?