Facebook Offers More
Shares in Stock Debut
Facebook said Wednesday it will now offer 421 million shares for sale —
a 25 percent increase. The privately owned social network Internet site
will become a public company on Friday with a stock sale that analysts
say could raise $16 billion for the company.
Facebook plans to set the price for its stock on Thursday, but says it
will cost between $34 and $38 a share.
Then on Tuesday, the world's largest carmaker, U.S.-based General Motors, said it is ending its $10 million advertising account on Facebook after concluding that its promotions on the site had little effect in boosting sales.
The loss of paid advertising from GM will have little affect on the
Internet giant, which earned $3.7 billion in revenues last year. But
financial analysts say this could lead other businesses to reconsider
using Facebook as part of their overall advertising strategy. Facebook's
advertising revenue growth has slowed in recent months, and it has yet
to devise a strategy to attract advertising on mobile devices like
smartphones or tablet computers.