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GM Ad Cancellation Does Not Hurt Facebook IPO

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By Douglas A. McIntyre Published
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Investors do not seem to care that GM (NYSE: GM) has dropped Facebook as an advertising medium. The press made a great deal of the news, but GM’s investment was only a few million dollars over the last year. Maybe skeptics about Facebook’s future reason that other very large advertisers will be unhappy with the result of their marketing on the social network and will withdraw as well.

But, in the face of the GM news, Facebook as raised the number of shares it will sell in its IPO to 421 million,which is up 25% from the number expected just a few days ago, according to several media reports. This would set the amount of money collected by Facebook at $16 billion, and value the company at over $110 billion. A great many analysts believe that Facebook’s valuation is much too high.

Whatever the reason. that has not stopped a nearly insatiable appetite for ownership in the company. Perhaps Facebook users want to be stock holders are well. It works that way with Apple (NASDAQ: AAPL), so there is a precedent.

Douglas A. McIntyre

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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