On May 18, Facebook (FB) announced it had acquired mobile gift-giving app Karma. There was other Facebook news that day, but lost in the hullabaloo was the fact that the deal was the social network’s second-largest acquisition to date. It totaled more than $80 million, according to two people familiar with the transaction who asked not to be named because the deal’s terms were private. Karma is a 16-person startup that debuted its first smartphone app in February. But unlike past acquisitions, where Facebook bought small companies mostly for their talented engineers, the social network plans to continue running Karma’s service and regards the purchase as an important step into the business of online commerce, say the sources. It’s also a bet that gift-shopping, a ... Continue reading →

The Facebook (FB) initial public offering—preceded by an epic lawsuit over ownership, an Oscar-nominated movie, a great leap forward for sweatshirts, and the constant feedback of roughly a billion customers—was always going to be more than just a financial event. It was a cultural event, too, a global party with a get-rich-quick theme. If nothing else, the poor performance of Facebook stock in the immediate aftermath of the IPO proves that on Wall Street, those who are late to the party don’t profit. There’s more to it than that, though. Investors are faulting everything from Morgan Stanley’s (MS) role in setting the terms of the offering to Facebook’s greed and the Nasdaq (NDAQ). And regulators including the Securities and Exchange Commission say that they may ... Continue reading →

Facebook Omitted Information in IPO, Prongay Says May 23 (Bloomberg) -- Robert Prongay, an attorney at Glancy Binkow & Goldberg, talks about the lawsuit the firm has filed with a California court over Facebook Inc.'s initial public offering. He speaks with Cory Johnson on Bloomberg Television's "Bloomberg West." Bloomberg's Emily Chang also speaks. (Source: Bloomberg) TV Channel Finder ZIP is required for U.S. locations Bloomberg Television in change Continue reading →

Morgan Stanley’s Gorman Said to Join Facebook Call on IPO Price By Serena Saitto and Douglas MacMillan - 2012-05-24T00:31:56Z Enlarge image Morgan Stanley CEO James Gorman James Gorman, chief executive officer of Morgan Stanley. James Gorman, chief executive officer of Morgan Stanley. Photographer: Scott Eells/Bloomberg May 23 (Bloomberg) -- Ken Polcari, a managing director at ICAP Plc's equities unit, talks about Facebook Inc.'s initial public offering and its listing with Nasdaq OMX Group Inc. He speaks with Emily Chang on Bloomberg Television's "Bloomberg West." (Source: Bloomberg) Enlarge image Morgan Stanley’s Gorman Said to Join Facebook Call on IPO Price Facebook shares tumbled 16 percent through yesterday. Facebook shares tumbled 16 percent through yesterday. Photographer: Scott Eells/Bloomberg As Facebook Inc. (FB) and Morgan Stanley (MS) executives ... Continue reading →

Facebook Banks Said to Make $100 Million on Stabilizing Stock By Lee Spears - 2012-05-23T20:31:09Z Enlarge image Facebook Spencer Platt/Getty Images The window of the Nasdaq stock market moments before Facebook shares went public on May 18, 2012 in New York. The window of the Nasdaq stock market moments before Facebook shares went public on May 18, 2012 in New York. Photographer: Spencer Platt/Getty Images Facebook Inc. (FB)’s underwriters for its initial public offering made gains of about $100 million through their work to stabilize the shares in public trading, said a person familiar with the matter. The gains will be shared by all banks on the IPO syndicate, said the person, who declined to be identified because the process was private. Morgan Stanley (MS) ... Continue reading →