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Monday, October 22, 2012

Facebook Inc (NASDAQ:FB)’s Europe head quits to join British venture


Is it just a one-off event or the start of a trickle of talent from the company? Only time will tell.

Facebook Inc(NASDAQ:FB) Europe's head of operations, Joanna Shields, is leaving the company to join a venture started by the U.K. government to encourage tech start-ups in the country.

Called the silicon roundabout' and planned on the liens of America's famous Silicon valley on the western coast, the Tech City Investment Organisation was established in April 2011 in London's East End area to attract investments for supporting start-ups.

Companies such as Google, Cisco and Intel are supporting the initiative.

"The success of Tech City shows just what can happen when we back some of our most innovative and aspiring companies to grow," Prime Minister David Cameron said in a statement on Sunday.

Has FB Found The Bottom and Ready To Move Up? Find Out Here

Shields is set to join the British organisation in January next year and she hoped that she could join in the endeavour to make London one of the premier tech centres in the world.

Facebook, which is already reeling under a crisis of confidence, will be further disheartened by this latest development.

It could not have come at a worse time for the social networking site, which is seeking to assure investors that all is well within the organisation and it is on track to deliver according to investors' expectations.

The shares in the company have exactly halved since its debut in May at $38 a share. The prospect for the company at this juncture appears extremely dim.

"Facebook supports the UK Government's vision for building a stronger technology-based economy and start-up ecosystem, and we wish Joanna every success," a company spokesman said.

Shares of FB are up 1% in the opening session. The company is scheduled to report its earnings this week.

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