Facebook is in big trouble.
First, the much-hyped initial public offering of Facebook stock barely cracked its launch price of $38 on May 18 before plummeting to $26 today.
And now shareholders are accusing the world’s #1 social network of vastly overestimating the value of its stock by claiming to be worth more than Microsoft, Kraft Foods and Ford Motor company.
Small shareholders, who lost millions on the first day of the IPO launch, are screaming foul amid a flurry of lawsuits and complaints. It seems that Facebook’s CEO Mark Zuckerberg knew his company didn’t have the revenue to justify his $1 billion valuation.
The shareholders accuse 28-year-old Zuckerberg of dumping millions of shares of his own stock for a billion dollar profit before the IPO launched.
And now, in what some are seeing as a desperate move, Facebook has announced it is developing technology to allow children under 13 access to the network.
This is a complete reversal for Facebook execs who previously denied any such technology was being developed.
Facebook currently bans users under 13, but they acknowledge that children lie to register on the service.
The under-13 features could enable Facebook and its partners to charge parents for games and other entertainment accessed by their children, according to Fox News.
This move is particularly troubling to federal regulators. Aside from the fact that Facebook is crawling with pedophiles, regulators fear that Facebook will undermine the privacy of children and their parents for a profit.
But Facebook has little choice than to come for your children since new user registrations among the adult population has declined in recent months.
Photo by Reuters Pictures
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