Some private investors bought shares at $55
- Last Updated: 3:13 AM, June 17, 2012
- Posted: 11:20 PM, June 16, 2012
ON THE MONEY
Just when you think the Facebook IPO debacle couldn’t get any worse, word comes that it was pre-IPO investors who really got Face-burned.
Mark Zuckerberg’s Facebook told regulators that some individual investors bought shares for as high as $55 on private markets before the company ever went public.
These unfortunate buyers made those calls without any information about the social network’s business — not even the basics like how much revenue it made.
Facebook, in a regulatory filing last week, said it considered a host of factors before pricing its IPO shares — including the up-and-down private market.
Facebook, of course, ultimately priced its IPO at $38. Shares briefly jumped to $45 before tanking. They closed Friday at $30.01.
People who bought above $38 are suing the company, bankers and the Nasdaq for all the losses.
But they have nothing on all the so-called smart money that jumped in late in the pre-IPO cycle, all thinking they were getting a bargain.
A bargain it definitely wasn’t.-- Garett Sloane
Time Inc. is looking to trim payroll at its Sports Illustrated title and at the rest of the Time Sports Group. — and On the Money has learned the goal is to trim about $3 million from its budget.
Terry McDonell, the editorial director of the Time Sports Group, said he was unsure how many of the 210 editorial people he oversees will be cut. One estimate put the number at less than 12, which would represent about 5 percent of the work force.
“We’re still going through the process,” said McDonell. “We’re trying to become more efficient across all of our platforms.”
The cuts will involve Sports Illustrated and its related properties, from SI.com to SI for Kids and Golf Magazine.
Needless to say, the Newspaper Guild, which represents writers and editors at Sports Illustrated, is not happy. Guild employees were told last week that if they did not get enough volunteers to step forward by the end of this week, then there would be involuntary layoffs.
“We believe SI is understaffed at this point. It’s difficult to imagine how they will operate with fewer people,” said Bob Townsend, a former prizefighter who is now the local representative at the Guild handling Time Inc.
After the reorganization, McDonell said, he expects to divide work according to the particular sports a writer or editor covers, rather than dividing it into print, tablet or dot-com: “They’ll be headed by a baseball czar, an NFL czar, a hockey czar . . .” ---Keith J. Kelly
Walt Disney Co. opened theme-park addition, Cars Land, at Disneyland in Anaheim, Calif., on Friday, and Miller Tabak & Co. analyst David Joyce is already revved up.
Joyce predicts the new addition could drive a 4 percent increase in both attendance and per-capita spending at Disneyland in the third and fourth quarters.
Separately, our Tinseltown tracking sources tell us Disney will hit the bull’s-eye again with its latest animation feature, “Brave.”
The Pixar movie, which is scheduled to open on June 22, is tracking for an open in the region of $65 million.
Coincidentally, that would be almost identical to the opening weekend of Pixar’s “Cars 2” just about a year ago.
The movie, which is Pixar’s first female-anchored project, is pitched as an antidote to Disney princesses — there is no prince, for instance.
Pixar split with its first female director, Brenda Chapman, a year ago, but she still gets a director’s credit. --Claire Atkinson
Jenny in the buff
People would rather wait and see Jenny McCarthy in Playboy magazine than on the small screen.
The bombshell is set to appear on the July/August cover of the men’s magazine and will pose for a naked pictorial in the inside pages — almost 20 years since her debut for the publication.
NBC was hoping her return to host a reality show — “Love in the Wild” — would be met with the same enthusiasm.
Once again, apparently, the Peacock Network guessed wrong.
The show was a surprise hit last summer, reeling in 5.5 million viewers overall. Among adults 18 to 49, “Love in the Wild” finished at or tied for No. 1 in its time period.
Execs were expecting those numbers to vastly improve after they reeled in the sassy and popular McCarthy to replace the virtually unknown Season 1 host, Darren McMullen.
Not so much.
“Lover in the Wile” hasn’t even cracked the Top 15 of its time period, according to Nielsen, since the airing of the first two episodes.--Joseph Barracato