Are Facebook employees who took advantage of the ability to cash out
some of their stock holdings as part of a tender offer from investor
Digital Sky Technologies "mercenaries"?
Controversial BusinessWeek tech reporter Sarah Lacy thinks they are.
The reason: they're giving up too soon. Lacy believes the $100m tender
offer, which is giving some employees the ability to sell up to 25% of
their Facebook stock at a $6.5bn valuation, will prove to be a
steal for Digital Sky Technologies.
The IPO market for technology startups seems all but shut these days thanks to the recession and financial system meltdown.
The bar has been raised very high; much higher than most tech startups are confident they can reach.
By almost all metrics, Facebook is the top dog in the social networking market. Even though it's now 5 years old, it's still growing like a weed and there's no reason to believe that its growth is going to subside anytime soon.
But is the company increasingly troubled?