Next Media Animation Takes On Facebook IPO
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]