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OPINION: Corruption’s Chokehold: Rebuilding South Africa’s Stolen Dreams

As we stand on the precipice of a daunting future, the United Democratic Movement (UDM) mourns the tragic collapse of the South African stat...

Sunday, August 12, 2012

Should advertisers worry about Facebook’s recent 83 million “dubious” accounts announcement?

Mark Zuckerberg could not have anticipated the current media onslaught when he listed Facebook on the Nasdaq in mid-May this year. The young man has seen off at least one bruising legal battle in the recent short history of this thriving social network, but that era may not come any close to the relentless heat that he will be feeling for the foreseeable future.

First, about the investors and the raw IPO deal

As Zuckerberg is learning, going public means you cannot avoid closer scrutiny of the scandal-hungry media. Unfortunately for him, the road leading to Facebook’s listing was already fraught with self-imposed potholes. Take for instance the fact that there are things that should have been said to all investors at the time of listing to temper their expectations of Facebook’s future growth prospects, but apparently only a select few of them were made privy to such information. The alleged reason for concealment from all the other investors is that this was going to impact negatively on the listing share price that was $38 at the time. As the media started peeling off Facebook’s skin and finding out the adverse information themselves, the share price followed by a steep decline, currently at more than 50% since listing, and this has left a lot of investors aggrieved.

To read more click here (Guest Column)

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