Long before the dawn hours I saw the encrypted email with the news blink into existence on my “other” laptop, and I could barely believe my eyes, and stifle a laugh:
…BONO IS BUYING A BIGGER STAKE IN FACEBOOK. THE DEAL HAPPENS TUESDAY.
As a father of a thirteen-year-old girl, I have many issues with Facebook. Mind, you the site represents many opportunities for character to be both tested and proven. But, it more often than not creates more problems than shining moments for kids mis-communicating through poorly monitored social media. I have a Facebook page, myself. But, I don’t use it; and, I don’t accept friends on it – to make a point.
I’ve addressed concerns over Facebook before. You can ponder that, here.
Hmmm. Maybe a few of you hold-outs might not know about this Facebook. So, here is a training video:
In any event… Now we have additional proof that Facebook defines poor decision-making and obfuscates reality.
It’s true… Irish rocker BONO thinks he can cash-in on the popularity of social networking website by investing money into Facebook.com. It’s inconceivable to me, but he U2 frontman has nearly doubled a prior investment in the company.
Bono, with managers at his California-based private-equity business Elevation Partners have ploughed £80 million ($120 million) into the privately-held site. This brings their total investment in Facebook to a stupendous £140 million ($210 million).
NOTE: According to a letter to investors published by the TechCrunch blog, Elevation managers were able to buy shares from insiders on the secondary market.
This would reasonably indicate that people who know what’s happening inside Facebook were eager to dump shares into the lap of a misinformed entertainer that can now add inadvertent comedian to his repetoire.
Look… BONO has been dubbed: “the face of fusion philanthropy”. We need him for that. And, I genuinely enjoy and value U2 both as musicians and environmental evangelists. But, I don’t like or value his political ranting (but, I’ll suffer it for a U2 concert). And, I’ll never follow their financial sense.
Analysts that I’ve spoken to about this (okay, that alerted me to the situation) say that the deal could actually be the start of an investment turnaround for the rocker. But, I seriously doubt it. BONO and his, otherwise, Motley Crew, also backed troubled cellphone maker Palm Inc. back in 2008. They dropped nearly £312.5 million ($500 million) into the debt-riddled firm, known as the the maker of Treo and Centro smart phones. Shortly after that (days in fact) the stock shares plummeted (I knew about the investment, but I didn’t short the stock – I swear!). This won him the dishonour of being named “Worst Investor in America” by Financial Journal 24/7 off Wall Street earlier this year (10).
Editors highlighted “an unprecedented string of disastrous investments which even bad luck could not explain” as the reason for choosing Bono, adding that Elevation Partners is: “arguably the worst run institutional fund of any size in the United States”.
So, Facebook is a challenge for me as a Dad. Its also a yoke for poor BONO, and an abyss for hapless investors that should know better than to follow investment advice from an Irishman with a chip on his shoulder.
For the rest of the day I’ll be listening to: Sunday Bloody Sunday.
Peace be to my Brothers and sisters.
Brian Patrick Cork