Wednesday, 23 May 2012

Google CEO Larry Page On 'Charlie Rose': Facebook Is Holding Its Users Hostage (VIDEO)

Larry Page Charlie Rose

Google co-founder and CEO Larry Page appeared on "Charlie Rose" Monday, and it was obvious something has been bothering him: Facebook.
After announcing his excitement overChrome becoming the most used web browser in the world, Page spoke about thechallenge of working with Facebook. According to Page, while Google has been fairly open about sharing its data with Facebook, the social network has not been reciprocating.
"It's been unfortunate that Facebook has been pretty closed with their data," Page told Rose. "In general, we'd like to see content on the Internet being made more open."
Page described a particular issue Google has had with Facebook over letting users transfer their contacts across the two company's services:
From a user’s perspective, you say I’m joining Facebook. I want my contacts. In Google, we said, fine. You can get them from Google. And the issue we had is that then Facebook said, no, Google, you can’t do the reverse. And so we just said, well, users don’t understand what they’re doing. They’re putting data in, and they don’t understand they can’t take it out. So we said, well, we’ll only participate with people who have reciprocity. And we’re still waiting.

Facebook Share Price Plunges Again: Valuation Doubts Rise As Social Network's Stock Takes Big Hit


By Suzanne Barlyn and Ryan Vlastelica

(Reuters) - Two top U.S. financial regulators said the issues around the initial public offering of Facebook should be reviewed, putting fresh pressure on the company, its embattled lead underwriter and the Nasdaq.

After Friday's nearly flat close and Monday's 11 percent plunge, Facebook shares closed 8.9 percent lower at $31 on volume of 101 million shares. At that price the company has shed more than $19 billion in market capitalization from its $38-per-share offering price last week.

Investors were still shaking their heads over the botched opening trading of Facebook when Reuters reported late Monday that the consumer Internet analyst at lead underwriter Morgan Stanley cut his revenue forecasts for Facebook in the days before the offering, information that may not have reached many investors before the stock was listed.

JPMorgan Chase and Goldman Sachs, which were also underwriters on the deal, each revised their estimates during Facebook's IPO road show as well, according to sources familiar with the situation.

Reuters reported that Morgan Stanley selectively disclosed the change in Facebook estimates, which drew the attention of the main regulator of U.S. brokerages.

"That's a matter of regulatory concern to us and I'm sure to the SEC," said Richard Ketchum, the Financial Industry Regulatory Authority's chairman and chief executive. "And without saying whether it's us or the SEC, we will collectively be focusing on it.

A Morgan Stanley spokesman declined to immediately comment on Ketchum's remarks.

Securities and Exchange Commission Chairman Mary Schapiro said investors should be confident in investing, but she conceded there were questions to answer as well.

"I think there is a lot of reason to have confidence in our markets and in the integrity of how they operate, but there are issues that we need to look at specifically with respect to Facebook," she told reporters as she exited a Senate Banking Committee hearing.