Some of the early backers of Groupon Inc., including Silicon Valley veteran Marc Andreessen, are heading for the exits, joining investors who have lost faith in companies that had been expected to drive a new Internet boom.
Facebook Inc.’s FB -3.22% stock price plumbed a new low Thursday as early investors were freed to sell some of their stakes, leaving the once-prized stock down nearly 50% from its debut and forcing executives of the young Internet giant to pump up morale.
After joining Facebook as vice president of marketing last year, Carolyn Everson made it her mission to win over skeptical ad executives who complained that spending on the giant social network wasn’t paying off.
An avalanche of privately held Facebook shares could begin hitting the market this week — potentially putting further pressure on the company’s stock — as rules expire that have kept some early investors from cashing out.
LinkedIn Corp. moved to reassure customers about the security of their data, following a password theft that caused a black eye for the social-networking service.
LinkedIn said in a blog post over the weekend that it had received no reports that member accounts were breached as a result of the stolen passwords.
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.
General Motors Co. plans to stop advertising on Facebook after the company’s marketing executives determined their paid ads had little impact on consumers, people familiar with the matter said — a move that comes as more companies question the effectiveness of advertising on the social networking site.
Facebook Inc. is planning to set the price range for its impending initial public offering in the high-$20s to mid-$30s a share, valuing itself at roughly $85 billion to $95 billion, said people familiar with the matter.
Facebook Inc. has built a $3 billion-a-year advertising business by convincing marketers to buy new forms of advertising designed to create buzz around their brands. But some advertisers with big spending accounts are wondering whether they’re getting their money’s worth.