So the Facebook roadshow moved into the city that really matters on Monday. Zuck zipped up his hoodie and headed for NYC. Zuck was of course there to entice and convince Hedge Fund managers and investors that it is worth taking a gamble on him. And that is excatly what they will be doing as Zuckerberg will after IPO still hold 57.3% of Facebook stock. Still be in control. Forget about what Mark Zuckenberg and the rest of the stake holders will earn. To my mind the following are the questions investors will and should be asking if they are going to be sumping up $25 to $30 bucks a share.
* Will Zuckenberg contuine to act alone and sign cheques for up a billion dollars like he did with Instagram?
* Will Facebook and its board put some corporate governance in place to ensure the above can not be done by Zuck alone .
* Facebook wants both business and consumers to meet and do business and trust it as the platform to do so. They want us to use Facebook to talk to big business. Facebook is known to has issues around how it treats users information. Do you think big business has enough trust in Facebook to store, handle and protect all parties. Again the question hangs over their corporate governance and compliance.
* The last question surrounds the big if, which is if Facebook is to deliver for the markets and grow it has to find a way to get is all to buy into their advertising on smart phones. Even they admit as much. To be honest I don’t see it happening. I think you go on Facebook on your phone to quickly update your status and check your friends. I don’t think your going to engage with Coke Cola while you on the Subway and on Facebook. The fact that so much is riding on Facebook, mobile advertising and a complete change of governance and behavior inside the company leads me to think it’s a pipe dream. The Hedge Fund managers and big investors may be able to take a gamble on Facebook but I think the little guys should steer clear next week. We will have fun watching though.