We’re about a month shy of the anniversary of Japan’s earthquake and tsunami disaster, and it’s unfortunate that some of its effects are still noticeable today, despite the hard work and perseverance of the Japanese.
Panasonic faces reorganization after a $9 billion loss last quarter and an anticipated $2 billion loss this quarter. Much like Sony and Sharp, Panasonic has struggled to bounce back in the midst of many obstacles: rebuilding, limited electricity, and competition from Samsung and LG in the emerging ‘green innovation’ market.
And with Kodak filing for bankruptcy a few weeks ago, the world economy continues to be ever-changing. Kodak, however, cannot blame its misfortune on an act of god – only in its inability to adapt to the digital era. Founded in 1880 by George Eastman, Kodak was once a frontrunner in photography. Unfortunately, photography ceased to be its focus, and now Kodak must rely on patent infringement lawsuits for revenue – a shaky business model if you ask me.
Bad news does not apply for every company, however. Facebook submitted their S-1 form earlier this week, thus confirming their intention of going public. Facebook, the social media giant who interestingly ran at a loss all its years of operation up until 2009, filed for a $5 billion IPO. The stock, under the ticker ‘FB’, will be provided by the following banks: Morgan Stanley, JP Morgan, Goldman Sachs, Merrill Lynch, Barclays Capital, and Allan & Company.
This past year, Facebook brought in about 3.7 billion dollars in revenue, of which 85% was due to advertising. The company serves .85 billion users, employs 3,200, has $3.9 billion in reserve, and owns 56 planets patents. Facebook now accounts for one in every five page views in the US.
Strangely enough, I don’t know which story gives me more of a headache.