"The first issue - if the "economic recovery is accelerating" why is California's revenue still decelerating on numbers that have been revised downward something like 5 times?
The second issue - It is becoming an extremely uncomfortable spot to be placing an IPO for anything right now. It doesn't matter that the entire finances of California apparently depends on you. The world doesn't care about your finances California. They have a few problems of their own.
A company that is suppose to have such a strong market position will certainly be embarrassed if the market takes a dive, and the IPO doesn't go well. It hurts your brand."
I wrote this about Facebook at the beginning of February in What if facebook withdrew its IPO.
The things is - there were many articles out last year (2011) saying that Facebooks revenues were slowing. Read: All the Cool Kids Are Quitting Facebook.
Then there was the crazy valuations. 5 times what Google commanded. Seriously? Google has done nothing but gobble up IP. Google has F-U space money. Facebook isn't going to space! And if it did - so what?
Then there is California with it's hands out. I'd read they already penciled in the 2 billion they expected to make in taxes based on a 35.00 stock price.
Look, Facebook likely waited too long to go IPO. You are suppose to do it while you are still growing. Their growth had obviously peaked.
And I want to feel bad for Mark Zuckerburg - I think this debacle mostly wasn't his fault. But he has the President on speed dial and I am just sick to death of crony capitalism. It's why no one trusts the market anymore. Instead of taking a company public to grow it - they take companies public to loot the individual investors.
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