Fox Business
Expand
Browse All Video
Watch Live

You're watching...

General Motors Pulls Ads From Facebook

Details

  • Description

    Questions raised about social media site just before its IPO.

  • Duration 1:42
  • Date

Clips

Also in this playlist...

Social Media

Auto-advance: ON

Auto-advance
View All

Transcript

This transcript is automatically generated

General Motors says FaceBook ads just don't pay off.

The largest auto maker in the US decides to pull -- paid ads on the site.

The move by GM one of the top three advertises in the US puts a focus on an issue many marketers have been -- Whether ads on FaceBook.

Actually help them sell more product that would General Motors has done is send a cautionary note out in the world affairs FaceBook advertising is still in many ways that -- -- Vehicle.

They've looked at it.

They've analyzed the results and they've -- we can spend our money more effectively somewhere -- probably online GM's decision raises questions about the ability of FaceBook.

To sustained at 88% revenue growth and achieved in 2011.

-- but said last month it.

First quarter ad revenue was down seven and a half percent from the previous three months.

FaceBook blames seasonal trends for that decline as -- the greater number of users outside the US where at rates are lower.

The news also comes -- space -- boosts the size of its IPO by 25%.

In a regulatory filing on Wednesday.

FaceBook saying about 421.

Million shares will be -- that's up from 337.

Million shares planned earlier.

It doesn't include other 63 million shares the deal's underwriters can sell to cover excess demand.

On Tuesday there's -- raised the expected price range for the stock.

To 34 to 38 dollars a share and that's up from 28 to 35 dollars a share reform when you look at the price verses that earnings.

Model or even priced revenues some people think it's way too rich.

On Friday -- that is expected to sell shares in an initial public offering which could put the company's market value at more than 100 billion dollars in New York.

Dennis -- Fox Business.

Load More