

Why Facebook's IPO could be disappointingly weak  - jasonlbaptiste
http://www.dailyfinance.com/2009/08/19/why-facebooks-ipo-could-be-disappointingly-weak/

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donaldc
_The upshot: the people with the best insight into Facebook's valuation voted
on what it's truly worth. And those people were heading for the exits._

 _Employees taking part in the buyback could sell stock equal to the lesser of
25 percent of their holdings or $1 million_

I don't really have a good idea how a facebook IPO would go, but I think it's
easy to read too much into what the stock buyout says about the IPO prospects
of facebook.

Were I a current employee of facebook I'd be happy to lock in 25% of my gains
at a $6.5 billion valuation even if I thought, _on average_ , my stock might
be worth more at an indeterminate future time.

If the stock did exceptionally well, I'd still get a fortune out of the IPO,
with the remaining 75% of my stock, and if the stock did poorly, I'd already
have made a lot of money.

