muses of the moment

February 5, 2012

So, explain to me again….

Filed under: Odds 'n ends — totallygroovygirlfriday @ 5:56 am

….how does Facebook make money?

With the TOTAL HYPE over the Facebook IPO, as if this is the second coming of Jesus Christ for the stock world, groovygirl is still confused. How does Facebook make a profit? Is it strictly data mining and selling? Advertising? Is it really worth that much money? Haven’t they reached their global saturation point yet?

If readers haven’t already figured it out, totallygroovygirl likes her privacy and she doesn’t spend 24-7 plugged-in. She chose this blog to communicate to the world and you guys are lucky of gg checks her email account once a day. GG is not a super-techie, she has a child’s flip phone. It’s like she lives in the Dark Ages….

No, actually, groovygirl just doesn’t want to be that hooked into The Matrix. And she is a rebel at heart. If it’s supposed to be cool, she doesn’t want to do, just as a matter of principle.

So, groovygirl isn’t on facebook or twitter or linked-in and she doesn’t even know what pandora is (isn’t that a Greek myth?). So she just doesn’t get all the hype. The main reason that gg isn’t on facebook is the privacy issue. Even if you only have a select group of friends that can see your page, you are held hostage by their security wall and the security wall of all their friends.

Groovygirl refers to it as the STD of the internet. You are really sleeping with everyone that your partner slept with before you and everyone they ever slept with.

I mean, I trust my friends not to communicate with psychos on the web, but not their friends’ friends who I don’t even know. And, oh boy, are there some psychos out there.

That’s my two-cents.

And, there’s that other thing that confuses me, why would ANYONE buy an IPO at issue? Who are these buyers? It always goes down. If you look at the list of underwriters (the Big Five), this looks like a short-term profit generator for them for 2012, not an IPO.

Update: Confirm by Reggie Middleton, GS makes huge fees on this. GREAT POST by Reggie.

Update: Here is a post about how facebook will pimp you out for $120 and other cool stuff. Click here. Just say “no”.

Update March 8, 2012: This is just an income generator for the banking industry and apparently the rest of the banking world got pissed that they were passed over. Facebook just added 35 more banks to peddle Facebook’s IPO.

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