The reader's comments in this article are much more insightful than that of the author. Investors are unhappy because they paid too much for Facebook stock in the recent IPO. I get why the investors are disappointed, but for everybody inside Facebook at the IPO, they executed a brilliant financial transaction. They maximized the return for the current stakeholders, and they didn't do anything illegal in the process.
The irony of this kind of a deal, of course, is that one second after the transaction, the people who overpaid you now become your stakeholders. In this way, CFO Ebersman finds himself in a tricky, uncomfortable position. But still, he totally did the right thing and got outstanding results.
Reminds me of the brilliant move Steve Case made, well over a decade ago, locking in much of AOLs excessive valuation by selling to the Washing Post company. I'm pretty sure he knew they were grossly over-paying, but that was hardly his fault or problem.
Like I said, many of the readers seem to get this quite clearly, unlike the author of the article.
The irony of this kind of a deal, of course, is that one second after the transaction, the people who overpaid you now become your stakeholders. In this way, CFO Ebersman finds himself in a tricky, uncomfortable position. But still, he totally did the right thing and got outstanding results.
Reminds me of the brilliant move Steve Case made, well over a decade ago, locking in much of AOLs excessive valuation by selling to the Washing Post company. I'm pretty sure he knew they were grossly over-paying, but that was hardly his fault or problem.
Like I said, many of the readers seem to get this quite clearly, unlike the author of the article.
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