Why Facebook's IPO could be disappointingly weak


Facebook is expected to go public this year, and sources in Silicon Valley say the fast-growing social-networking company is anticipating a blockbuster. But could such speculation be premature?

Indeed it could. A few days ago, word surfaced that Facebook's semi-stealth share buyback was oversubscribed. Demand was so high that former employees got pushed out of the buyback pool, with preferential treatment going those currently working there. The upshot: the people with the best insight into Facebook's valuation voted on what it's truly worth. And those people were heading for the exits.

Originally published