Month: June 2012

Why Facebook Flopped

ICangles Communications Post…

The reason for the failure of the Facebook initial public offering can be summed up in a single word, mobile. Problems at Nasdaq, investment banker miscalculations, a share structure tailored to strip shareholders of traditional rights, concerns over the leadership abilities of a CEO actively articulating his disinterest in making money or even one of their biggest advertisers in General Motors pulling out on the eve of the deal because Facebook advertising was deemed ineffective certainly didn’t help. But all of these issues could have been overcome. What could not be overcome was the inability to communicate a viable mobile strategy.