have you on again soon. steve weiss. >> long. >> stephanie link. >> e-bay. >> b.k. >> upl. >> don't forget to catch more fast at 5:00. that cnbc special on facebook begins right now. >> facebook ice mission is to make the world more open and connected. >> facebook, it's everywhere. >> facebook fever going on. >> the job spur of evolution half a world away. it changed the way we speak and keep in touch. it turned a small group of college fans into millionaires. >> for the first time ever in a single day we have half a billion people use facebook. >> in this cnbc special, we're asking the key questions behind what may be the most important initial public offering of the decade. including his facebook something you should investing.

see how much the facebook founders will be worth tomorrow. and see how corporate america is cashing in now. >> it's the story of your life. >> facebook, the social offering, begins right now. here's carl. in a few hours history will be made as facebook goes public. it will be the biggest internet initial public offering ever. the kids who invented the standard for social networks become billionaires. and a lot of others will get rich after redesigning the way the world communicates. but there are problems and questions. this afternoon we're going to run you through some privacy concerns, warnings for potential shareholders. should you play the stock? how does the website make money in the first place? we're going to answer all of those questions. but we're going to start with the pricing set for this afternoon before the stock starts trading under the symbol fb tomorrow morning at the nasdaq. our kayla tausche monitoring the relationship the company has with the street. kayla. >> the wall street wants this to

be very core o graphed. they've been planning this for months and especially throughout this week as you've seen it very carefully ork straited. a price of $34 to $38 a share. under s.e.c. regulations a deal cannot price more than 20% above the stated range without refiling because otherwise it's a material change to financials. so with $38 as the high end, that means $45 is your absolute ceiling. now, investors i spoke to says wall street has been sounding them out on a $39 a price. by no means a sure thing because it's coming to investors if a higher price is possible. that happened with blackstone and zynga. there's no difference once an investor wraps their head around the valuation of 26 to 29 times sales, those numbers aren't really a deal breaker. above $40 a share could raise some flags, especially considering what jim cramer mentioned on "squawk on the

street," 59% of the deal coming from investors who because they're selling could push for a higher price ultimately, carl. >> thank you very much, kayla tausche. want to run through all the original founders. they all met at harvard. and perspective dollar signs now. none of this is final. it's all dependent upon several factors. first, mark zuckerberg, his share in the company expected to be worth around $20 billion. he'll own a controlling stake in the new public company. the co-founder of facebook, vp of engineering, the chief technology officer, his stake, around $5 billion. eduardo saverin, co-founder, estimates around $1.4 billion. and next on the list, chris hughes, went onto run president obama's organizing team in 2008, peg his stakes around $700 million. then there's the corporate side of ownership. accel partners about 5%, worth about $7 billion. digital sky technology, worth about $5 billion.

microsoft's investment worth about $1.2 billion. greylock partners roughly $1.4 billion. and goldman sachs will own about 1% of facebook, that's about $2.5 billion. investors had cause for concern after gm this week said it had doubts about the effectiveness of ads on facebook. gm said it would no longer buy ads on the site but will continue to have a presence on the social media giant. ford immediately said it would continue advertising on that site. how exactly does facebook make its money? julia boorstin takes us inside their strategy literally. >> facebook wants to keep its nearly one billion users connected, sharing and playing. because more time on the site means more ads can be delivered. whether users are checking in at starbucks, liking coca-cola or sharing their latest amazon purchase, facebook can capitalize on it. as like these on the right side of the page or in a news feed are valuable to marketers

because they uniquely target each individual user. so the ads that i see are determined by what i share on my profile, what i like and the links i click on. so how valuable is that? in 2011 ads generated $3.1 billion. 85% of facebook's revenue. just like individuals, companies can set up pages to communicate with fans for free. and facebook can make money here as well. take the 41 million plus fans who like coca-cola. coke can pay facebook to make sure that fans see its messages and updates. even more valuable to a brand is reaching the friends of its fans. in coke's case, that's hundreds of millions of people. facebook's real value is delivering personal social contacts on a very large scale. for instance, if i'm a fan of coca-cola, the company can pay facebook to post an ad with my name and the brands logo on some of my friends' news feeds. facebook leverages the information its users share to

deliver ads with social context. extending brands reached in a personalized way to hundreds of millions of new eyeballs. then there are games like zynga's farmville. users can play for free, but there's big money here, too. players can buy virtual goods with facebook credits, which cost real money. the social network's cut, 30%. on a limited edition farmville haunted house, that runs $7. facebook's take, $2.10. and with tons of virtual stuff sold every day, it adds up fast. in 2011 virtual goods in ads from zynga alone generated $445 million in revenue for facebook. with millions already buying those credits with credit cards, it paves the way for the social networks to move into other businesses. apps on facebook already allow users to buy streaming movies and concerts with facebook credits. one more way to get people to spend even more time on the

social network. one potential threat to facebook's business model down the line, privacy concerns. facebook points to both regulatory changes, potential regulatory changes, as well as user concerns as one challenge to its business model down the line. carl. >> julia, privacy is one thing. but revenue streams are another open question, aren't they? >> that's right. well, revenue streams are chief operating officer, sheryl sandberg's primary job. she has a very big role here at facebook. overseeing advertising in particular. now, after the ipo tonight, she will be worth nearly $2 billion. sheryl sandberg is the grown-up at facebook. running the social network's advertising business and overseeing hiring. in her four years there she's helped facebook become profitable, grow its user base by 13 times to over 900 million and create a new social media

economy. >> just the studies we've done in the last year say we've created more than 450,000 jobs. >> unlike her boss, ceo mark zuckerbe zuckerberg, who dropped out, sandberg graduated first at harvard and went onto harvard business school. larry somers, her undergraduate thesis officer hired her as a researcher at the world bank and brought her on at the chief of staff. she maim e made the jump to silicon valley in 2001 running google's online sales and operations and launching its philanthropic arm. but a friendship struck with zuckerberg after a chance encounter at a holiday party moved her to facebook in 2008. >> i think i've gone on to do lots of things, working with mark and the rest of the management team to help grow the company. >> they have what facebook employees say is a true partnership. >> we have a great coo, sheryl sandberg, who runs a huge part

of the business. no one can do it. >> they meet every monday and friday though they talk constantly throughout the week. >> my day job keeps me really busy. >> she also sits on the boards of disney and starbucks and a member of the council on jobs and competitiveness. the mother of two has achieved cold status. her speech is viewed online hundreds of thousands of time. >> we need women at all levels including the top to change the dynamic. >> the $31 million she brought home last year made her the company's best paid employee and was more than 20 times what her boss earned. one big question is whether sandberg will be added to facebook's board. right now there are no women on facebook's board. one other fun facebook tidbit, we just got a copy of this poster. this is the hack-a-thon poster that facebook employees will be participating in tonight. they'll be staying overnight to code all night long. here it is. it's the 31st hack-a-thon.

>> let it begin. julia boorstin in menlo park. julia, thanks. what about the company itself? how profitable is facebook? what kind of assets do they have? jon fortt also live in menlo park with answers to those key questions. hi, jon. >> hey, carl. yeah, just a month ago marc zuckerberg unilaterally decided to start-up instagram. in about a day he'll have ten times that $10 billion in cash to spend. so what could zuckerberg spend that on? zuckerberg could eventually make a run at that other social network, twitter. he could buy more patents, a few former facebookers are running social start-ups that might be decent acquisition targets. or facebook could do nothing. >> facebook's got essentially the boosters millions problem. they've got so much money

already with just the cash that they're throwing off from operations that they don't actually need the money that they're going to raise in this ipo. >> but if they're dreaming big. >> i would love to see facebook get into tv. i would love to see facebook in the payment space. >> facebook's s-1 says there are no specific plans for the cash. it's for working capital, general corporate purposes, tax on employee stock grants. >> most important thing is that they figure out what are areas that are core, and areas that are core, they're going to have to make acquisitions because they're going to want to own those. >> some others have suggested zuckerberg could just let that cash sit there and grow. apple has more than $100 billion in the bank, about 12 times more than facebook. google has nearly $50 billion. what's all that cash buying them? cushion to take risks. zuckerberg will need that kind of cushion if he wants to continue focusing on the long-term. and that's exactly what he wants to do, carl.

>> jon fortt in menlo park. let's get to bertha coombs. what does fb mean for the nasdaq? >> it means great tech but also means annual revenues. sandler o'neal estimates about 2% of outstanding shares. here's the wall-to-wall estimates to who gets how much. nasdaq will get the lion's share, $1.7 million in annual revenues for nasdaq in terms of their share. and the listing fees, that puts it over $2 million from just facebook alone. but nyse will get some too. they'll be friendly. about 30% share according to the analyst at sandler o'neal which is about $1.9 million. the rest will go to bats and other exchanges. they'll split up about $1.7 million. the big payday, tomorrow on the listing day. rich peterson says the record volume for an ipo right now is gm. and they listed again in 2010

did 457 million the first day, 157 million the next day. we're expecting facebook could surpass that record here. >> thanks so much, bertha. coming up next, we'll help you answer the big question you're probably asking yourself right now. should i buy the stock? answers in just two minutes.

welcome back to our special coverage of the facebook ipo. no investment is perfect. look at all the hype surrounding zynga, pandora, linkedin and groupon. of those four big social networkers, only linkedin is trading above its ipo price. bob pisani is at the nyse this afternoon with some of the risks and warning signs behind facebook's ipo. hey, bob. >> carl, i want to believe. i do. i just don't know. there's a problem here. the whole company is a bet that they're somehow going to have some special sauce that's going to lock all that information they have on everybody and turn it into a tsunami of earnings. i'm a little skeptical about that. if you are, maybe you want to hold back. they also tell me you're going to see facebook banking, facebook gaming, facebook movies, facebook salamis in the future. if you believe that, go ahead and keep buying.

others are more skeptical. carl, insiders own this stock at $1.11. keep that in mind when it's trading around $50. >> that's a nice return. jeff kilburg with kilburg capital. jeff, i have seen up to $150 based on cash flow asujss five years out and more. why should i buy this? >> carl, every parameter we use to analyze a company, you have to throw that out the window. we are seeing this facebook fever here in chicago. everyone's talking about this. it's an emotional trade. and you don't want to be on the wrong side of it. to bob's point, i think facebook is in its infancy, it's going to continue to evolve. and doept be surprised with the president's election in 2020 we use facebook to vote. >> interesting thesis. michael, 48% of the internet population they have. they have half of 1% of worldwide ad dollars. there's got to be some runway for growth there. >> definitely runway for growth. and i agree with the killer in

one point there that you're really betting on this company and what they're going to be able to do in the future. if you're an individual investor out there, tomorrow this huge hype built up around this ipo, the last thing you want to do is try to step in into the after market and buy this stock. it may or may not be the next great thing, but there's no reason to make that bet tomorrow. even when google came out, google within three months came back down to its ipo price. so i don't see any reason why facebook here is going to take off and never look back. i'd wait on it. >> so in a word, jeff, what price would you be interested? >> i think i'm in at $40, i'm in at $50. we see a 66 tomorrow. you have to get in. everyone wants pieces from 11-year-olds to the great grandmothers out there. >> michael, if it comes back post ipo, what level does your appetite get whetted? >> it's going to be fun to watch. when we come back, how facebook is changing the fiscal landscape

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california has money troubles. they spend too much, they take in too little. a few days ago governor jerry brown said the state budget shortfall had grown faster than predicted from $9 billion to $16 billion. can facebook help solve the problem by spurring an economic revolution in the golden state? our jane wells is live in palo alto. good afternoon, jane. >> hey, carl. anybody in this valley who doesn't work for facebook is asking what's in it for me? they have never seen such anticipation, even not in 1999. will a thousand new millionaires solve california's problems? no, but they'll help. >> we have had some facebook employees. >> mark putnam has been selling cars in silicon valley since he was a teenager. and he remembers how crazy things got during the dotcom boom. people coming in with cash. >> yeah. you're not going to see your car for a month. i don't care. here's a deposit.

he doesn't expect the new facebook millionaires to party like it's 1999, but california hopes they do. this week jerry brown updated the budget. the state now says facebook's ipo could add $14 billion in additional income this year. 20% of all income growth in california. taxes on that would be close to $1.5 billion. and over the next few years, total ipo-related taxes could reach $2.9 billion. >> we've had a structural deficit for a long time. let's pay down our debt. >> controller john says that's not something usually happens. google helped generate new spending instead of fixing the budget. there's currently a $16 billion deficit. and facebook cannot fill the entire hole. >> any progress is good progress. >> and any sale is a good sale. like the one mark putnam just made to a facebook employee. >> she brought us some facebook t-shirts. >> those could be valuable.

he even sold a car to zuckerberg's sister, but he thinks most of his new business isn't going to come directly from facebook employees, carl, but the people they hire. realtors, remodelers, and then those people will go out and buy cars. >> the mood in that part of the country is an amazing story right now. thank you so much, jane wells in palo alto. still a lot more ahead on "facebook, the social offering". >> coming up next, the big winners in what many believe will be the ipo of the decade. also today, what the facebook founders and all those other employees in silicon valley are doing with this new money. and meet the next generation of high-tech innovators as college kids and start-up companies all over the country are spired to inspire the world. hardest one was the $1 billion offer. i had to make this argument to people that somehow this was going to be the right decision.

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there is the countdown to tomorrow's opening bell. down to the milliseconds. really, guys? okay. the stock, fb, facebook, will start trading on the nasdaq some

time after that. the price range for today's offering has been finalized. the current range $34 to $38 a share. it is possible the stock may price above that. facebook has refiled with the s.e.c. twice in the last two days increasing the amount of shares and the potential price. facebook is expected to raise about $18.4 billion in the ipo. making it the second biggest in history, but the largest internet ipo ever. we'll see, even that may change. we want to go inside the deal behind the numbers once again with kayla tausche, kayla. >> carl, 900 million users, 125 billion friendships. that's where the numbers story begins. facebook is planning to sell 421 million shares to the public, less than half of those the company is essentially creating. specifically for this offering. the other chunk from insiders and other investors who already own a portion. now, all told everyone involved will wake up tomorrow worth about $16 billion more than they have today. facebook enlisted an army of 33

banks to make sure that there are no foul ups here. morgan stanley's running the show. jpmorgan and goldman sachs not far behind. and each bank will distribute a portion of the offering to their clients and cash-in on millions of fees. then bankers will have a 30-day window to sell another 63 million shares at the ipo price as part of what's called an over allotment. its design is to give the process a bit of a buffer to stabilize the trading level. if demand is high, expect them to dish out every single share they can. meaning an additional $2.4 billion in proceeds. then there's perhaps the most important part of the ipo, and that's of course that all-important pricing. over the past ten days facebook bankers have been talking to buyers, management bankers setting the final price after the bell on what can be a tense and high stakes meeting of the minds. the challenge of course, maximizing value while making sure to leave a little pent-up demand ensuring a positive reception when fb beginning

trading tomorrow. in the end, the public is on track to own about 16% of facebook. carl. >> obviously a lot of speculation, kayla. part of investors believe they don't even want to be a public company, kayla. do you think they're interested in taking the number one position from visa, for instance? >> i think that that comes with a big responsibility. i think that of course it's a big boilerplate, anyone would want that superlative, but it comes with risks. visa a very strong blue chip company. as an internet company, you have a lot to live up to there. >> kayla tausche, thank you very much. before we go any further, we want to take a step back. eight years back. cnbc used to have a show called "bullseye." long before facebook was a household name, zuckerberg was one of becky's guests. >> when we first launched we were hoping for 400 or 500 people. harvard didn't have the facebook. that's the gap we were trying to fill. now we're at 100,000 people.

who knows where we're going next. we're hoping to have many more universities by the fall. hopefully over 100 or 200. from there we're going to launch a bunch of site applications that should keep people coming back to the site and maybe make something cool. >> what is the facebook exactly? >> it's an online directory that connects people through universities and colleges and social networks. you sign on, make a profile by yourself by answering some questions, entering some information such as your concentration or major at school, contact information about phone numbers, instant messaging, anything you want to tell, interests, what books you like, movies. and most importantly, who your friends are. then you can browse around and see who people's friends are and just check out people's online identities and see how people portray themselves. just find some interesting information about people. >> great interview with becky. and mark zuckerberg. lesson, always keep it tuned to

cnbc. you never know when we're going to introduce you to the next big thing. whoever thought that would have an impact on u.s. gdp eight years later? our steve liesman our senior economics reporter talking more about how they're going to contribute to this economy. >> and ipos in general. each going in part to pay the taxes from founder mark zuckerberg's exercise of stock options. are they just taking your money to pay a tax bill? let's look at ipos and how they do and in some cases do not add value to your portfolio. some 600,000 companies, new businesses formed annually. some are contractors and restaurants. they don't make it. 1,000 of these get venture capital financing. this is your generating of different companies for ipos. how many make it to the final? 100 every year or so average is the number of ipos annually. they raise some $27 billion, which puts in context the $18 billion being raised. do they create jobs? jay ritter at the university of florida, he is mr. ipo.

he says they do. he studied companies over a 10-year period after the ipo. on average 822 employees added just directly from these companies. all companies 60% employment growth. but take out some of the older companies do what ritter calls emerging growth companies, they added a whopping 160% to their pre-ipo payroll. are they good for your portfolio? look at some of ritter's work. if you get in on day one, you'll be up 18% or 20%. that's not the rest of us. over a three-year period you can get 20% runs for the average ipo, the smaller ones underperform, the bigger ones do not. this looks good, right? not as good as you think. take a look at the other when we compare it to the market. the average three-year return actually trails the market. you'd be better off in the broader market and that's because the smaller ipos are the ones that underperform. the bigger ipos do okay. you can see right here those greater than 500 million end up being 2.6% above the market.

why is that important? because that on average shows that they add economic value in line with about the average company. so they are doing capital investment and adding to workers even if they're saying they're just paying a tax bill. and, carl, one thing economists say, it is critical to have this ipo cash-out as incentive for those 600,000 people to even start their businesses to begin with. >> we're talking about this on a day where people are worried about a banking collapse in europe. going public is not exclusively american, but it is inherently american. >> it is, but it's a race that we're losing. a lot of ipos, we used to be dominant. we're much less dominant than we used to be in part because investors are getting wise to smaller ipos. it's a way you're getting a lot of money being raised abroad as well. not exclusively an american game anymore. >> thank you very much, steve liesman. reports say the average facebook worker that includes the rank and file, will be $2 million wealthier once the stock hits

the market. what are they doing with all that money? jane wells is back with us live. jane. >> carl, you know the california housing debacle hasn't really hit this neighborhood very much. down the road university avenue one of the priciest zip codes in the country. so will all these new millionaires boost prices even more? maybe a little. miles mccormick is a veteran realtor in palo alto with facebook employees as clients. back in the days banks took restricted stock options as collateral for mortgages in silicon valley. those days are gone. the linkedin ipo last year did not boost home prices as much as in expected, so he's cautious about the facebook ipo. >> what i found about facebook is there's a culture with that group that's unlike anything i've ever seen. >> it's a culture he says comes from the ceo whose tastes are very modest. >> they're very in tuned with

less is more. >> even so, less is a lot more here. alto's research says the median home price in palo alto is $2.3 million. foreclosures? realty track shows only three currently. inventory is tight. less than three dozen homes for sale. but some owners may be holding out for the ipo. >> certainly great for sellers who are going to move out of the area. without a doubt. >> it's waking up in a park. >> some sellers want to cash-in now. like ken and linda, whom we've told you about. they put their silicon valley estate on the market for $29 million but would prefer pre-ipo facebook shares over cash. >> i think facebook's got a great model. i would love to own a piece of it. >> an early investor in facebook recently bought a home for $100 million. but realtor miles mccormick does not expect many of facebook's new millionaires to go for break. it's not their style. the club of unpretentious

pretentiousness. >> do i buy something grand? no. am i kind to mother earth? yes. am i going to buy something that's a lot more than what i really need? no. >> did they get pre-ipo shares? no. carl, they're hoping for a new post-ipo to a new millionaire, and they're not alone. >> now to cramer time. the mad money man himself onset with me. we're going to talk about facebook. >> sure. >> you have not only talked about pricing internet start-ups, you have lived this story. what do the conversations sound like with bankers. >> okay. there's a great tension. there's tension among the people who want to buy, you're talking large mutual funds who are commission payers, there's tension at the company, the company wants the maximum amount but not upset people. and then there's this just unbelievable over the transit where the syndicate managers lose control entirely of the situation to individual frenzied buyers who come in with market orders. this is what happened at the

street.com and two other ipos between 1998 and 2000. that's the most dangerous part of this. >> what do you think the first day looks like? >> kayla had a fabulous report. i still think they're going to bump within the legal range what they can do. i still hear tremendous demand. i don't like the fact that 59% -- of course it's going to be sold to insiders, that is the highest of any except for pandora, which is the worst one. so i think it's possible. people will be using a $2 number say for 2015. there are people willing to pay 25 times earnings for that. $50 would be the institutional price where they would still be bullish. if we get a lot of public market orders, carl, it could be $70. >> $70? >> but people do the wrong thing. >> you're not advocating that. >> no. i'm a sell, sell, sell. sell, sell, sell. everyone. by the way, ten out of ten, you should sell. ten out of ten of them -- i've got them right here. ten out of ten of these deals you should sell the opening day. >> so after the initial trades are done, when does it look

attractive? >> all right. we've had tremendous declines in every single case in these companies. i want to go back to use that $2 number. again, i'm willing to pay. i'm not willing to pay as much as 25, i could do 20 times, go back to the range, give or take a dollar, i want to own it. >> we'll see what happens tomorrow. >> so exciting. >> it really is. a moment in american business. thank you very much, jim cramer. mark zuckerberg and his friends are now old men. meet the next generation of innovators and see what they're working on next. i remember in the first week alone i'd come home from classes and see that 10% of students at harvard were logged on at any one point in time. then that was just really cool. so then by the second week we had all these people from other colleges around us like m.i.t. and other colleges in the neighborhood were e-mailing in asking if we could release facebook at their schools too.

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another possible negative for digesters gsh greece may not remain a member of the eurozone amid concerns about the failure to form a new government. dow's down 74. just a few hundred points from being flat for the year. as facebook goes private, we sent our cameras up to cambridge to see how the harvard crowd was reacting. >> i want to know who makes the decisions once it goes public. will the privacy change? will people learn more information about me? >> i think it's going to change the facebook experience because ads will be much more important. >> if i got an offer to get in on the ipo, yes, i would definitely buy the stock. >> so what does the facebook ipo mean for the next generation of start-ups? jon fortt live with us again from facebook's other hometown, menlo park, california. jon. >> yeah, carl.

here on sand hill road there are two major lessons i'm hearing entrepreneurs and investors are taking from this facebook ipo. one, you can slate. wasn't the first just the best. and, two, absolutely that -- social distribution makes money. and the best example of that, a great example perhaps, is fab. this launched just last june. it's a designed focused retailer. it's already on track to make $100 million in sales this year. i talked to an investor who backed it of menlo ventures, he says post-facebook ipo every start-up needs to think in those terms. >> whether you're an e-commerce, a gaming company or whether an auto manufacturer, everybody is thinking about how to use social, much in the same way everybody was thinking about how to get online. and much in the same way that people are thinking about how to get part of the pc revolution. >> so when apple ipoed in 1980,

it launched a craze, '96 was about the web. this was about getting big fast. >> jon fortt in menlo park. thanks. money's a huge part of today's facebook story. but we want to change the conversation to how facebook has changed the conversation. here's kelly evans. >> it's the facebook phenomenon. >> in order to get a group together, you sort of have to be on facebook. >> everyday thousands, even millions of people, sign into facebook. seemingly alone together. but the irony doesn't go unnoticed to becca and her friends. there are times when the undergrads step away from the media titan born question their dwoegs to the site. >> we can all have our laptops on and be communicating not actually talking to each other at all. >> it's a phenomenon that has some researchers worried. >> i think we're setting ourselves up for trouble. trouble in our relationships with each other, that goes

without saying. but also trouble in how we relate to ourselves. >> this woman is the director of m.i.t.'s initiative of technology. why we expect more from technology and less from each other. what has facebook done to human interaction? >> i think facebook has put a premium on presenting an idea of self. >> and we have to present that ideal self to an ever-expanding social circle. remember that stat that says everyone in the world is separated by just six degrees? facebook's done the math. and based on its number of users and the average number of friends each of those users has, the company says it's narrowed the gap down to 4.74 degrees. turkle worries the pressure of keeping up with all those connections could be getting to us. >> it's creating a certain anxiety of performance. created this phenomenon, fear of missing out. >> while she knows she's fighting an uphill battle in

getting that message out, at least she's not alone. that harvard student is her daughter. >> i'm very conscious of when i'm with a group of friends. i'm the one who always says, guys, put it away. >> it's not as if sherry expects people to give up facebook altogether. she wants us to be aware there can be down sides to constantly being plugged in. and with 900 million users and counting, that might be a conversation worth having. back to you, carl. >> kelly evans, thanks. privacy concerns, succession plans and the deal, more coverage of facebook's ipo is coming up. keep it tuned to cnbc all day for tonight's pricing. google's a great company. and i think we want to look at and learn from everything that they do, but at the same time, you know, people have shared a lot on facebook. and they have already told a lot of their life story on facebook. and we think that we have by far better tools for doing that.

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and coming up on "street signs," apple essentially losing a facebook worth of market cap since their all-time highs last month. is it time to buy? or is there more ix pain ahead?

we will debate. and as losses pile up from the bad trade at jpmorgan, so do calls for jamie dimon's resignation. a hedge fund manager weighs in. and a fee for all airlines cashing in on extra costs for everything nowadays. we'll all be taking the bus without them. for now, here's sue herera at the nyse. >> thank you very much, brian. after several hours of beating back negative headlines, the dow jones industrial average the industrial the leader down about 90 points at this hour. the headline at the hour is concerns about greece. as carl mentioned a few minutes ago, fitch announcing a couple minutes ago its cutting its rating on greece once again. it's now at ccc, reflecting concerns greece may not be able to maintain its european union membership. it goes onto warn if they do exit the eurozone, widespread defaults are possible on euro denominated obligations. we will follow this story and

the markets throughout the hour and afternoon. after the break carl continues our special on facebook including major privacy concerns for users and investors. we began with the rx.male] [ tires squeal ] then we turned the page, creating the rx hybrid. ♪ now we've turned the page again with the all-new rx f sport. ♪ this is the next chapter for the rx and the next chapter for lexus. see your lexus dealer. but not how we get there. because in this business, there are no straight lines. only the twists and turns of an unpredictable industry. so the eighty-thousand employees at delta... must anticipate the unexpected. and never let the rules overrule common sense. this is how we tame the unwieldiness of air travel,

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okay. so our coverage has been comprehensive to say the least. there's a look at the countdown to tomorrow's opening. of course the actual trading of facebook will begin at some point after that. i'll be at facebook headquarters in menlo park as the stock does start to trade. for now let's bring in kayla tausche. kate kelly here in studio. and in california jon fortt and

julia boorstin. good to have all of you. great hour of coverage. typically, kate, when we go into a pricing, things sort of compress, it gets very tense. is that what's happening right now? >> absolutely, carl. i think phones are probably ringing off the hook at the underwriters office certainly facebook headquarters. certainly investors are buzzing about what's going on. the buzz today seems investors are being felt out on a $39 price. we don't know if that's where it will end up. it certainly could based on the most recent range which is $34 to $38. we do not expect a revision. they can go to as low as mid-40 range according to s.e.c. regulations. people are watching the blue chips closely today to see how other stocks in the market as a whole is behaving to make sure there's no major marketmovement to effect their valuation conclusions. >> it's our job to raise potential concerns. there's been a bunch of them this week. gm, privacy, we'll talk about with julia in a moment, classic shares, kayla, has been something else.

the way the shares are constructed, the way power is centralized around zuckerberg. >> you have to remember this is not the first time that it's happening. newscorp is a controlled company. nike is a controlled company. dunkin brands, a lot of the private equity firms when they take their companies public, they retain a controlling stake. this isn't something new. it did come to light when google announced its stock split that they were cementing that control at the top. is that a good thing? well, the nice thing is the market will get to decide as a public company its stock will reflect real value. the market is a very fair place and hasn't done us wrong most of the time. but i think that the market will reflect how people feel about it. the issue is as a controlled company, zuckerberg gets to nominate people to the board, shareholders can't. there's no shareholder rights plans. there's no audit committee, there's no compensation committee. people will be vocal if they want it another way. >> when it comes to privacy, julia, it's been said that every time zuckerberg has been denied something, he's found another

way to come back and find something close to what his original goal was. how is that going to change in public life? >> well, carl, i think that facebook is very aware of the privacy concerns. just earlier this week they had a q & a sort of open web conversation with anyone who wanted to talk about their privacy changes. on friday they suggested some changes to their privacy policies. and they're inviting users to come and suggest adjustments to those changes. facebook realizes that both users and regulators are watching them when it comes to privacy issues. and they know that if users are worried that they can't trust facebook with their privacy, then they could leave the service. so facebook wants to make sure both users and regulators are okay with the way they manage those privacy issues. and they recently launched this new page as a destination for all things privacy-related on facebook. so you can go there and figure out how to easily adjust your privacy settings. facebook wants to put control in the hands of users so it doesn't get in trouble for how it is using that personal data.

>> yeah. jon, it's not your everyday ipo, all right. and executives are not being made widely available. instead there's a hack-a-thon tonight. how would you describe the mood out there? is it electric? is it something else? >> it is electric. but people are really focusing on how they can capitalize on the movement that facebook is creating. entrepreneurs, investors really talking about social and capitalizing on it. talking a lot of history here. apple's ipo in 1980 spark interest in pcs, but the better investment was microsoft's ipo a few years later, like wise netskap and yahoo! in '95 and '96. a lot of people focusing on what opportunities is facebook creating. >> you know, carl, people seem very confident that this thing is going to trade up in the after market. i don't want to sound like a cheer leader, and i think kayla's right that shareholders will vote on what they think about the class structure including many things like

growth prospect, but people think, look, if it prices at $40, we expect to see $50, there's no doubt about the retail interest in this name. i think that's something to look out for. one other point is, google has been on a huge run-up the last few days. a lot of people think that is a reflection of the investor support for facebook. >> that's going to be a big benchmark going into pricing today too. >> absolutely. >> finally -- as we get into our final moment, i hope you won't mind addressing what do you think in the end was behind gm's announcement this week? why would you do that to a company just as they were about to hit the streets? >> oh, i think it was not an announcement. i think it leaked out. and gm was not happy about the fact that it leaked out. i think if you look at the numbers of what gm was actually spending, they were spending $10 million on facebook ads, but $30 million on creating content for facebook. that's a weird mix. a lot of people say that's not the way you should advertise on facebook. >> guys, thank you very much. good to talk to all of you. that does it for us here. stay tuned to cnbc. we will be in special cover