A few weeks ago, we highlighted how the Facebook's IPO will probably disenfranchise investors (below).
 
Now, the Wall Street Journal reports that Mark Zuckerberg just plain went around the BoD in the new Instagram deal:
 
The board, according to one person familiar with the matter, "Was told, not consulted."
 
Of course, right now FB remains a private company, accountable to its private equity investors. No reason to think, though, that this can't or won't happen after the IPO.
 
MRL
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Resources and Advisory Services
 
If you're an investor that wants to turn around an underperforming portfolio company, then TAI is for you.
 
Management listens to The Activist Investor.
 Why Would Anyone Buy FB?

Or even worse, wait in line and pay a premium price? 

 

FB is of course the new ticker for Facebook, Inc. when it goes public sometime in the next few months (still deciding between NYSE and NASDAQ). Everyone expects it to become the hottest IPO in recent memory, as investors call in favors from brokers to fight over scarce shares.

 

Others have studied the prospectus, and found many distinctly investor-hostile governance terms. 

 

See our current blog post for why Facebook and others like it offer a simple lesson about how investors can avoid activist situations before they ever become necessary, or can pick activist situations that are most likely to succeed.
For further information, or to discuss a specific turnaround situation, please contact:
 
Michael R. Levin
m.levin@theactivistinvestor.com
847.830.1479