Tag Archives: Facebook

Wall Street Punishes Facebook

 

 

NEW YORK – Facebook Inc. shares closed on Friday with a drop of 4.1%, to 19.05 dollars, but in intraday, trading fell 4%, to 19.04 dollars, far from the $38 with which debuted in Stock Exchange in May.

Shares fell sharply in Thursday’s session after completing a period of prohibition of sales for some people with interests in the company.

Over 270 million shares were unlocked on Thursday, representing more than half of the 421 million shares that were sold in the initial public offering of the social networking firm.

Shares of Facebook, the world’s largest social network with over 955 million users, sank on fears dragged a brake on growth in their income and their actual ability to generate profits from ads on mobile platforms.

 

 

Yahoo Reported Revenues of $1.081 Million

 

SAN FRANCISCO – Yahoo on Tuesday reported stable net income and a slight decline in profits in the second quarter, a day after announcing the appointment as CEO of a former Google executive who is seeking to revive its fortune.

Yahoo reported its results on the first day of its new chief executive, Marissa Mayer, Google executive, who was a long time and became the third leader in 12 months.

The company’s net income, excluding fees paid to partner websites, was of $1.081 million in the three months that ended June 30, which compares with $1.076 million in the comparable period of 2011.

Analysts polled by Thomson Reuters I / B / E / S estimated net income of $1.096 billion.

Yahoo’s net profit in the second quarter was $226.6 million, or 18 cents per share, slightly less than $237 million or 18 cents per share for the same period last year.

Excluding certain items, Yahoo said it earned 27 cents per share, up from 22 cents per share analysts expected.

Mayer faces a major challenge in the quest to revitalize a weakened Internet pioneer who has seen stagnant income growth because consumers spend more time on social networking sites like Facebook and Twitter.

Yahoo said its revenue from Internet advertising rose 2% over the previous year to 535 million, while its search revenue fell 1% to 461 million.

The hiring of Mayer as chief executive ends a difficult year in Yahoo. In May, Scott Thompson resigned as CEO after less than six months in office due to controversy about his academic background.

Thompson had replaced the direct and sometimes aggressive Carol Bartz, who was fired in September because he failed to revitalize the company.

Yahoo shares rose 10 cents to 15.70 dollars in after-hours trading on Tuesday.

 

 

Oracle Buys Social Marketing Firm

 

 

SAN FRANCISCO – U.S. technology company, Oracle, announced the acquisition of the social marketing firm, Involver, the third deal in three months in a key area for software vendors.

However, the terms of the deal were not provided.

Involver, based in San Francisco and founded in 2007, provides tools for developers to put up advertising campaigns on social networks like Facebook.

“Companies are trying to harness the full potential of social media to increase brand loyalty, connect with potential customers and anticipate the needs of buyers,” Oracle said in a statement.

Oracle, the third largest global software provider, has strengthened its position aggressively in social media in recent months, starting in May with an agreement with Vitrue. The next month, Oracle bought Collective Intellect, a social media analysis company.

Although problems with the Facebook IPO in May could cast doubt on the use of social media, in business agreements. they have continued at a blistering pace.

Salesforce.com bought the advertising company, Buddy Media, for $689 million in June, while Microsoft acquired the software maker, Yammer, by 1.200 million in July.

 

 

Yahoo and Facebook to Reconcile

 

NEW YORK – Yahoo Inc. and Facebook Inc. believe that conciliation talks on a clear demand for patents would benefit if a U.S. judge postponed certain deadlines, according to a court document filed Tuesday.

Yahoo sued Facebook this year, claiming the company violated 10 social networking patents, including several that cover online advertising technology. In its lawsuit, Yahoo said that Facebook was considered “one of the worst places for publicity” before adapting to the ideas of Yahoo.

Facebook then filed a countersuit, accusing Yahoo of having short-sighted their decision to give priority to “litigation over innovation.”

Yahoo filed its lawsuit when the company was under the leadership of then CEO, Scott Thompson. However, shortly after the start of the Thompson case, it was dismissed amid a question regarding his resume.

In the document presented on Tuesday, Yahoo’s lawyer, Kevin Smith, asked the San Francisco federal judge to postpone for two weeks a series of deadlines for the case. Facebook did not oppose the order, Smith wrote.

The extension “would facilitate the negotiations,” he added. District Judge Jeffrey White approved the postponement Wednesday.

Yahoo and Facebook representatives declined to comment.

 

Apple is Moving Away; But Facebook Accelerates

Apple confirmed their position as the most valuable company in the world, with an amount of 182.951 million dollars (mdd), representing an increase of 19% over 2011, according to the study of “The 100 Most Valuable Global Brands in the World”, presented by Millward Brown.

“It seems that the death of Steve Jobs did not leave any effect on the mark and left everything very well maintained for years after his death,” said Ricardo Barrueta, director of the consultancy.

This ranking is done for seven years with data collected from the consumer’s opinion, Bloomberg financial reports on companies, and the contribution of the brand with its products.

The “bell” in this count gave Facebook , who advanced 16 positions and is now within the top 20 most valuable companies in the world, with a rating of 33.233 billion.

“At this rate of growth would not surprise me to see this social network within the top 5 most valuable brands,” Barrueta said in an interview.

The valuation of Facebook, which first appeared in this ranking in 2010, was made before the company started trading in the Nasdaq, although the manager said the company already reported financial status since the end of 2011.

 

 

Pakistan Cuts off the Wings to Twitter

ISLAMABAD, Pakistan – Pakistan on Sunday blocked the social network, Twitter, because they refused to remove material deemed offensive to Islam, said a Pakistani official telecommunications.

The material promotes competition on Facebook for uploading images of the prophet Muhammad, said Mohammad Yaseen, Chairman of the Pakistan Telecommunication Authority. Many Muslims consider blasphemous images of the prophet.

Yaseen said that Facebook agreed to consider the complaints of Pakistan on the competition, although officials acknowledged that they have succeeded in the case of Twitter.

“We have been negotiating with them until last night, but they did not agree to remove the material, so we had to block it,” Yaseen said.

The orders to block the page came from the Ministry of Information Technology in Pakistan, Yaseen said.

The directors of Twitter and Facebook did not submit comments.

A court in Pakistan banned Facebook in 2010 to the outrage sparked by a similar competition. The ban was repealed two weeks later, after the network blocked that particular page in Pakistan.

The Pakistani government said at the time that it would continue to monitor other web sites for content and links to anti-Islamic.

Facebook Co-founder Causes Controversy

Eduardo Saverin, co-founder of Facebook, said in a statement Thursday that he is obligated to pay “hundreds of millions of dollars in taxes to the U.S. Government.”

Saverin said his decision to renounce his U.S. citizenship and move to Singapore, was “based solely on my interest in working and living in Singapore, where I have been since 2009.”

At the gates of the multi-billion IPO of the company’s social network, Facebook, Saverin has been criticized by U.S. lawmakers for what they said was to avoid taxes on gains that are expected in the stock for his involvement in Facebook.

In a statement sent to Reuters by his spokesman, Saverin says, “I paid and I will pay any tax on any gain achieved while (is) a U.S. citizen. It’s unfortunate that my personal choice has caused a public debate based not on facts, but entirely on speculation and misinformation.”

 

GM Looks to Leave Facebook

General Motors, the largest automaker in the U.S., plans to withdraw ad spending that keeps the pages of the social network, Facebook, because of the limited impact of these ads on their prospects.

According to a note published Tuesday in the electronic version of the The Wall Street Journal, GM executives have “determined that their paid ads have little impact on car-buying consumers.”

The text cited people close to negotiations, without naming. In addition to that, it collected testimony from the director of marketing for General Motors, who agreed to be “definitely re-evaluating their ads on Facebook.”

If realized, the decision would be a blow to Facebook, which will make its first public offering this week and whose titles have generated great interest among investors.

Due to the demand for their actions, Facebook’s value is up at 104.000 million dollars to start trading on the New York Stock Exchange.

GM’s position coincides with that expressed by some critics, who claim that Facebook is overvalued, arguing that the company does not have a clear business plan.

Happy Birthday, Mark Zuckerberg!

Mark Zuckerberg, Facebook founder, turns 28 years old and holds a fortune of 17.500 million dollars, which is positioned in 35th place in the list of Forbes’ richest.

Zuckerberg, who was born in White Plains, New York, founded Facebook in 2004 in his dorm at Harvard, along with Dustin Moskovitz, Chris Hughes and Eduardo Saverin.

Eight years after its creation, the social network was launched on 1 February with the Securities and Exchange Commission (SEC) documents for an Initial Public Offering in order to raise 10.000 million. The operation may be the largest IPO of a company in Silicon Valley and is expected to occur this week.

If the price for its IPO is located in the range of 28 to 35 cents a share. Zuckerberg pocketed up to 1.100 million dollars, according to experts.

Zuckerberg is one of the leading entrepreneurs of Silicon Valley.

For experts, this is the most important explanation of why Facebook has not yet founded any formidable rival in the sector, including the challenge of Google last year.

Although a busy man, the young CEO gets challenges each year: in May 2011, Zuckerberg said he was willing to eat meat from animals he had killed.

In December 2010, the publisher, Bluewater Productions, released the biographical comic “Mark Zuckerberg: the Creator of Facebook.”

Facebook Promotes Organ Donation

NEW YORK – Facebook is intended to help the public to donate organs.

Its CEO, Mark Zuckerberg said users in the U.S. and the UK will be able to register as organ donors through links on the largest social networking site.

Zuckerberg said his friendship with the co-founder of Apple, Steve Jobs , who received a liver transplant before dying last year, gave him the idea.

The executive of the giant social network announced the news on Tuesday on “Good Morning America”.

Some users of Facebook have already been registered as organ donors. Facebook is preparing a stock offering that is expected to be $5 million dollars.

The offer could raise the value of the company to $100 million.

 

Facebook’s Weapon to Get to NASDAQ

Current Status 

Facebook, the social network created by Mark Zuckerberg, is betting that its IPO prospectus will occur in the second half of May. The company explained that after the first quarter of 2012, these are the most representative data:

  • 901 million active users each month.
  • 3.200 million comments and “likes” are made every day.
  • 300 million photos are uploaded to the social network every day.
  • 125.000 million “friends” are on the platform.
  • 488 million active users each month via phone.

The company explained that their markets have higher growth rates in Brazil, India and the U.S.

Purchase Instagram

Facebook bought Instagram for millions of cash and stock. Instagram is an application to edit and share photos.

“This is an important step for Facebook because it is the first time we buy a product and a company with many users. We have no plans to do more of these acquisitions,” said Zuckerberg at the time, in the company’s official blog.

IBM Patent

The company acquired 750 patents of International Business Machines Corp. (IBM), in an effort to increase its intellectual property portfolio following a lawsuit filed by Yahoo for an undisclosed sum by the company.

Microsoft Patents

Facebook bought 650 Microsoft patents, for $550 million in cash.

These licenses had been recorded in the first instance by AOL, who sold part of its portfolio of IP at Microsoft last April 9, and for which the company founded by Bill Gates, would have paid 1.000 million dollars in cash.

“The agreement today with Microsoft represents an important acquisition for us. It is a significant step in creating a portfolio of IP to protect Facebook and its long-term interests,” said Ted Ullyot, legal representative of the company created by Mark Zuckerberg in 2004.