What’s all the fuss about Facebook’s IPO?

I totally agree with Frank Bruni’s account of the Facebook’s IPO. It seems to me that if the current price of FB is pretty close to the offering price, then the bankers were doing their job.

I mean, as I see it, their job is to open the stock at a price that’s as close as possible to it’s true price, that is, what the market will think its worth. And common sense says the only way to find that out (‘what the market will bear’) is to put it on the market and see what the market will bear. If their research is excellent they will be able to somehow figure out what the market will bear, ahead of time, and offer it there.

I think that’s just what happened! Good on them. From Frank Bruni’s Article:

“Instead, virtually everyone who bought Facebook on that first day was making a one-day, get-rich-quick calculation. It didn’t work out. Too bad.” (from Facebook’s Brilliant Disaster – NYT)

Kindle book prices: another genius move

Take a book that I was interested in, “The Lords of Finance”, by Liaquat Ahamed. This is a brand new book, very timely that I heard mentioned on TV.


I think this might again turn the publishing world upside down. Questions:

  1. Will it cause publishers and printers to loose a bunch of money because people who normally buy hardcovers will by Kindle books instead?
  2. Will it cause them to MAKE a bunch of money because people who never buy hardcovers now will buy Kindle books (as I am tempted to, with this particular book)
  3. What is Sony thinking? I think they are running a huge free marketing program for Kindle. They convince someone to read books on a device, and once they do they see the huge amount of money they can save by doing it on a kindle and go buy one.