Three Facebook Inc. investors filed a civil lawsuit Wednesday in Manhattan federal court, alleging the company and its underwriters failed to properly disclose changes to analysts’ forecasts made at the underwriting banks.
Less than three days before Facebook Inc.’s initial public offering, Chief Financial Officer David Ebersman decided to boost the number of shares the company would offer investors by 25 percent, said people familiar with the planning. His main adviser at lead underwriter Morgan Stanley assured him there was plenty of demand, they said.
A senior Nasdaq Stock Market official told customers Tuesday afternoon that it would have pulled the plug on Facebook Inc.’s initial public offering had it known the full extent of the technical problems that plagued its systems.
Here’s one to watch: The ride-sharing service Zimride, which has focused on matching riders and drivers for long trips, is launching a new on-demand ride-sharing app called Lyft.
King.com, one of the fastest-growing social games companies on Facebook, has opened a new game studio in London that will be led by Electronics Arts and Playfish veteran Catharina Lavers Mallet. While an executive producer at EA, Lavers Mallet worked on major titles like The Sims Social. The London studio is expected to hire about 40 employees and to work with the company’s headquarters there in addition to other offices in Hamburg, Stockholm, Milan, Romania, Malta and San Francisco.
Shares of Facebook stock sank 4.2 points in their second day of trading on the Nasdaq, ending the day at $34.03, a somewhat expected downturn after a lackluster start last Friday. The stock opened at around ten percent under where it closed on Friday, most likely due to lack of underwriter support in propping prices up by exercising the “greenshoe” option.
Nasdaq OMX Group Inc. faced the fallout for mishandling Facebook Inc.’s initial public offering, as irate brokers and traders demanded the exchange company make up losses they blamed on Friday’s technical glitches.
Ubisoft is releasing a free version of its popular Ghost Recon on Facebook today, with the goal of attracting the same hardcore audience that will pay $60 for the console version coming out tomorrow.
Robert Greifeld, chief executive of Nasdaq OMX Group Inc., on Sunday acknowledged design problems with Nasdaq’s technology after the exchange operator was widely seen as bungling the landmark listing of shares of Facebook Inc. on Friday.
Haven’t gotten enough coverage of Facebook’s initial public offering yet? Here’s a video of CEO Mark Zuckerberg giving a speech to employees before ringing the opening bell on Friday.
Here is the latest comic from our Joy of Tech friends at Geek Culture, Nitrozac and Snaggy. Joy of Tech appears three times a week in the Voices section of this site.
Facebook Inc.’s public debut had plenty of buzz but not much pop. The shares opened 11 percent higher, but struggled to stay above their $38 offering price and ended the day up just 23 cents.