Featured, Money & Power

Facebook’s IPO: A Good Investment? U of MD Prof Says, Maybe

0 Written by: | Friday, May 18, 2012 6:30am

This story was originally published on Feb. 1, 2012, but given today’s Facebook IPO, we thought we’d re-run it. – The Eds.

Rumor has it that Facebook is set to file an IPO in the near future. No doubt, this will be a big deal. Not only is Facebook omnipresent in our social lives, its also helping shape our economy. A few months ago, a study showed that Facebook apps have created 182,000 jobs worth more than $12 billion. So is investing in Facebook a good idea?

Well, maybe, according to Gerard Hoberg, associate professor of finance at the University of Maryland. In the pro-column:  Facebook is already huge, and it seems like it’s here to stay. And word on the street that Morgan Stanley is underwriting the IPO. “History shows that IPOs underwritten by strong names… tend to be successful investments,” Hoberg points out. But the big question is growth. Is it possible for Facebook to get bigger than it already is? “How much upside is left?” Hoberg wonders. “Although the first day return for Facebook will likely be substantial, its long-term outlook may be average for the industry.”

So invest or not, as you see fit… but prepared for a whole lot more Facebook in your future.

Featured, Money & Power

Mark Zuckerberg’s Sneaky Visit to Baltimore Last Week

0 Written by: | Wednesday, May 16, 2012 9:00am

As was reported earlier this month in The New York Times, Mark Zuckerberg visited Baltimore last week as part of his Facebook IPO dog and pony show. One place he paused? The downtown headquarters of T. Rowe Price, of course, whose stake in the social media juggernaut is worth over $500 million.

Boy Wonder brought along his chief operating officer, Sheryl Sandberg, and the two had to sneak inside.

“They were trying to avoid  a Fox 45 camera team near the building so they came in throught the service elevator,” said one person who attended the meeting. “Mark was in his hoodie, as is his M.O.”

Zuckerberg presented to the group and munched on chicken parm, pasta, and Italian bread, just like any 27-year-old (he turned 28 a few days later).  Then he was off to BWI to head back to California and more of the roadshow.

 

Money & Power

IPO the Orioles: Sell Team to the Baltimore Community

0 Written by: | Thursday, Apr 05, 2012 9:00am

Courtesy of Citybizlist – With each opening day, Orioles fans hope that the team will defy all odds and come out of nowhere, like Jeremy Lin,to surprise and delight us. The Orioles may have the same chance of winning the World Series as we did of winning the last mega millions drawing. But we still keep buying tickets, albeit not so many as we used to.

For me, last year’s final game against the Red Sox at Camden Yards that denied Boston fans the opportunity to see their Sox in the playoffs was like winning the 7th game of the World Series. Call it my version of fantasy baseball – it’s about all this long-suffering O’s fan has to hang onto these days.

Read More →

Money & Power

IPO to Make Instant Millionaires of Millennial Media Founders

0 Written by: | Monday, Jan 09, 2012 10:00am

Watch for these two names: Paul Palmieri and Chris Brandenburg.  Both are poised to become Kevin Plank-important, and soon.

With the filing last week of the necessary documents for an initial public offering of Millennial Media, the Baltimore-based mobile ad network is sure to make multi-millionaires of its 40ish founders — Palmieri and Brandenburg. The documents put the value of the company at $305 million. And it’s just the beginning. See filing at Citybizlist

Five-year-old Millennial Media is the largest independently owned mobile ad network, with offices in Baltimore, London, DC, New York, San Francisco, Los Angeles and Singapore. Its two major competitors — Admob and Quattro — are owned by tech giants Google and Apple. According to TechCrunch, Millennial has seen growth of 138 percent in the last year with revenues near $70 million in the first nine months of 2011. Net losses, meanwhile, declined from $5.4 million to $417,000. 

While the company and its co-founders are well-known in the tech community — both have been the recipients of too many awards to list here — they are less known in and around Baltimore.  Palimieri graduated from Mount St. Mary’s College in 1992 and lives in Hunt Valley. Brandenburg is a UMBC grad, who is from Harford County.

So if you’re a development director looking for deep-pocketed board members or a scientist in search of someone to fund your latest study or a just an ambitious artistic visionary in search of a patron, you should probably friend these guys on Facebook, or better yet, connect with them on LinkedIn. But don’t get hurt feelings if they ignore your request. They’re kind of busy right now…

Money & Power

Baltimore-founded NEA’s Groupon Investment Valued at $2.3B, T. Rowe’s at $330M

0 Written by: | Tuesday, Nov 08, 2011 12:00am

Courtesy of Citybizlist — Many pre-IPO investors tripled their money while early investors like New Enterprise Associates made astronomical returns as Groupon Inc. (Nasdaq: GRPN), the daily deals company, completed a $700 million initial public offering, the biggest by a dotcom since Google Inc.

Groupon shares touched $31 before closing at $26.11 on Nov. 4, giving investors a 31 percent boost on the opening day. The share price gave Groupon a valuation of $16.50 billion.

New Enterprise Associates was among the biggest gainers. Among the earliest investors in Groupon, NEA’s 87.45 million shares were valued at $2.28 billion, for a potential return of about 154x, according to peHUB, a venture and private equity news site run by Thomson Reuters.

Among other investors in citybizlist’s geographies, Boston-based Fidelity Investments and Baltimore-based T. Rowe Price were the biggest. Each invested $100 million in the Internet startup and their stake was each valued at $330.61 million on Nov. 4.

From New York, Morgan Stanley‘s $75 million investment grew to $247.96 million; and Allen & Company‘s $4 millioninvestment grew to $13.22 million.

Boston-based Battery Investors VIII LP‘s $23 million investment grew in value to $76.04 million, and Greylock XIII L.P.’s $65 million investment rose to $214.89 million.

Also, Dallas-based Maverick Fund Private Investments Ltd.’s portfolio grew to $165.30 million,from $50 million.

The following are some Groupon investors and the value of their holding as on Nov. 4:

read more at Citybizlist

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