Facebook's swooning stock: Pity Sean Parker, other gajillionaires

Found on CNet News on Wednesday, 23 May 2012
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As a result of the swoon in Facebook's stock, early investor Sean Parker is likely to lose out on $380 million in cash he had expected; Facebook co-founder Dustin Moskowitz: $285 million.

At issue is what's called the "over allotment" of shares -- known in Wall Street lingo as the greenshoe.

With the bankers under attack and the stock hovering around $31 a share -- roughly 18 percent below the offering price -- it's unlikely the underwriters can exercise the over allotment, unless the stock takes a surprising turn and starts to rally.

Luckily people know that Facebook is pretty much another bubble only with no real business plan. Until now it was always hyped, but now money gets involved and investors start to think about the not exisiting business plan.