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Social networking service now subject to intense scrutiny by demanding shareholders and government regulators
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Good evening I'm shivering in her -- the -- investors definitely -- FaceBook when its stock came up for sale late this morning.
But could government regulators dampen the mood correspondent Doug Callaway reports.
Within thirty seconds of his 38 dollar a share initial public offering 82 million FaceBook shares -- changed hands.
FaceBook has become the most valuable US company at the time of its IPO making its founder Mark Zuckerberg.
With nineteen point one billion dollars in making millionaires of hundreds of other early investors.
You've done amazing things that we never would have dreamed.
-- -- can't wait to see what you guys all do going forward.
FaceBook jumped 11% before sliding back down on the fall cushion by underwriters who bought the stock as it drops averting potential embarrassment.
It closed today at 38 dollars and 23 cents.
The key question now can FaceBook maintain its value as a publicly traded company intensely scrutinized by demanding shareholders and government regulators.
You can't just say hey we're gonna decide to do XYC.
You need -- think -- have -- the public can view that I think they're going to be other federal government implications such as.
The security exchange commission and financial recordings there the Federal Trade Commission.
Another government entities are now have an eye on what's happening here what with FaceBook.
The IPO comes at a time of deep sovereign debt -- certain markets and finicky public -- for new technology.
The Internet is moving so quickly that technology is advancing so what might be applicable today in terms of information data sharing.
-- being totally irrelevant a year or two years from now.
One warning sign for FaceBook General Motors pulled reported ten million dollars of advertising from the side.
Finding that its investment had little effect on sales congressional overseers worried about abuse of privacy present another obstacle.
One of the reasons FaceBook created its own political action committee and contributed heavily to both political parties.
I think FaceBook has actually taken privacy very seriously this is you know one of their for -- Success measures is that if they don't get this right then people will cease to use it.
Experts say it success will be judged over the long term not by today's IPO.
Certainly there's the excitement about a we just get people talking about this city does.
Necessarily solve what you solve the economic problems on Europe and -- -- slowing economy here in the states or anywhere else.
Still the tremendous wealth created by Facebook's IPO and Mark Zuckerberg it's vision is a reminder the American dream is still works.
It's also a gift to the state of California where FaceBook is headquartered that deeply indebted state is expecting a tax windfall.
Of two point one billion dollars from Facebook's earnings over the next thirteen months -- Lots of settings and zeros to their bank accounts and -- thinks I'm.
