tv ABC7 News 500AM ABC May 18, 2012 5:00am-6:00am PDT
good morning. 5:00 on this friday. facebook friday i'm kristen sze. i'm eric thomas. eventful morning for facebook. this morning the talk is over, the buying begins. menlo park-based facebook goes public morning in what is equal parts ipo and cultural phenomenon. amy hollyfield is live at company headquarters. >> reporter: history will be made with this phenomenon and the employees know it, they are proud, excited. a few have driven by and honked their horns. their co-founder mark zuckerberg is expected to become the 29th richest person on earth with this ipo. and the average facebook employees' shares will be worth 2.9 million dollars. here's some of those employees. of course it is not just the employees who are excited. investors will be lining up to
pay $38 a share. some admit the hype and emotions may be influencing some judgment. >> it is something a company and product that i love so i may be willing to pay a price that is not a rational price because i want to be part of the facebook phenomenon. >> reporter: here's some perspective of this day. facebook's two billion shares will blow other first day trading numbers out of water google was 250 million zynga 116, groupon nearly 50 million and linked inn at 30 million. it is a -- huge day for this company, many have pulled an all nighter in anticipation of the company's big moment. amy hollyfield, abc7 news. today you can buy a piece of facebook if you want to given how popular facebook is among user wall street expects many of you will. will it will be a wise
investment for you? katie marzullo joins us. >> reporter: that's the question this morning. >> a frenzy. >> reporter: >> reporter: to buy or not to buy. -- depends on which experts you want to believe. a lot of people asking themselves this morning. here's the deal for regular people at 7:45 the banks will set the price for shares to be sold to the general public shares go on sale at 8 a.m.. the early investors got their shares for $38 a piece in the ipo. at 8:00, the resale value could be double or triple if you believe the hype. that's why some are advising caution this morning. not everyone is list anyone. >> i would wait for about a half hour for -- for that to settle a tiny bit. i wouldn't do it at all to be honest. >> i've read things that say you should invest in companies that you like or no. i know this company >> reporter: that sentiment is a big part of why this ipo is garnering so much attention, it is personal.
within analyst says this is probably the first time -- one analyst says this is probably the first time where everyone has a stake, familiar with the company i should say. although most users won't see a penny from in ipo those who do better hope they stay strong in the long run. that's the next question, big pay out maybe in the next few days but doesn't have to stay in power. our team coverage continues all morning in 30 minutes we go live to the back in new york to hear some of concerns about this ipo. we'll be live in menlo park at mark zuckerberg rings the nasdaq opening bell remotely at:30. 6:40 reaction live from wall street. -- on the flip side, silicon valley buzzing with reports that hewlett-packard is reaping to -- is preparing to lay-off 30,000.
reevaluateing business model and may get back into the tablet business. ceo meg whitman has combined computer and printer divisions which are losing money. the lay-offs could save the company more than a billion dollars. she is expected to announce the lay-offs next week. pg&e crews in novato trying to fix downed powerlines teetering dangerously over homes. the lines knocked out power to 7,000 in the area. 500 are still in the dark now. the power pole is at a precarious angle most likely caused by yesterday's strong winds. people have been warned to stay away crews expect to have all power restored later this morning. a's owner wolf says he remains focused on moving the team to san jose even though mlb says there is no timetable
over resolving a dispute with the giants. yesterday commissioner selig said it was up to wolf to decide if he wants to consider other sites. the giants are fighting the a's on tphraeurpbs to open a new downtown stadium in san jose. lawmakers in sacramento passed a bill that tar if gets fan violence at sporting events. bill 2464 requires professional stadiums to post contact information for security in the stands and ing lots help can arrive quicker when contacting stadium directly rather than calling 911. legislation was written in response to several fights including a fight that critically injured brian stow. he has been moved to a new health care facility where he's still recovering. giants host the a's. a lot of folks are going to be there and wondering about the weather.
>> what mike? mostly clear, not as breezy as yesterday, low 60s, mid 50s by the time the game ends. fastest wind concord south at 13 everybody else around seven miles per hour they will come back in the forecast especially along the bay shoreline and the coast where they have that small craft advisory until 3:00. here's how today breaks down, 7:00 this morning, mostly sunny throughout the forecast upper 40s to low 50s at 7:00 noon comfortable mid to upper 60s around the bay and inland mid 60s around the coast. 4:00, low to mid 70s inland mid to upper 60s around the bay mid to upper 50s at the coast we start to taper friday low to mid 60s around the bay and inland the coast around 56°. tree and mold pollen high. grass and ragweed moderate.
next three days low 80s to upper 70s inland mostly sunny to partly sunny monday low 70s around the bay upper 50s to near 60 at the coast. how is the morning commute going? a little tough as you head through napa, two injury accidents on highway 29 at 221 that might be related just one crash there could be a lane blocked in both directions. a car drove off the freeway into a ditch on north of 80, eastbound 80. these accidents are on the north bay also one on the peninsula north 280 at hickey. a car crashed into the center divide it has been in for a while not causing big delays. the car hit the center divide so hard they are having a hard time pulling the car off the center divide. there's guardrail damage in the area. 680 and contra costa county
walnut creek traffic fine no problems southbound towards highway 24 through the san ramon valley and sunol grade. out of tracy slowing which you can find with our waze traffic app. computers reporting that it isxz heavy near mountainhouse. -- 5:0 the. sony anne ter owners fighting over 3-d glasses. money report is next. -- >> the new app that tells you how many guys and girls there are at your favorite night spot before you leave home. it is not your usual fender-bender. first look at damage done when two u.s. navy ships collided in southern california.
>> closed captioning brought to you by mancini sleepworld. good morning. the blame spreads. sources tell wall street journal that jamie dimon personally approved the concepts behind the disastrous trades jpmorgan has lost three billion dollars targeting his image badly. later this morning facebook shares will begin trading at $38 per share that will value the company at 104 billion dollars. more than crafts, mcdonalds's and other well-known companies. there could be a spectacle over 3-d glasses for "men in
black" -- just about 5:13. happy friday. we are learning the extent of the damage from the collision of two navy ships off the coast of southern california when the uss essex an amphibious assault ship docked in san diego ran -- you can see the damage on the starboard side of the essex. the collision smashed several lifeboats, damaged an elevator and twisted some railing along the catwalk. >> there was a malfunction and the position of the ship there was a collision yesterday. >> the navy says the structural integrity of the ship was never compromised. new this morning the prime minister of italy is in the united states. he landed last night at join
base in maryland he's here for camp david g-8 summit. the summit kicks off with a dinner tonight. if you hit any clubs tonight you will be able to find out ahead of time how many men or women are there so you can calculate your odds of meeting someone. new app debuts tonight in san francisco, uses cameras and controversial face recognition technology to determine when a man or woman enters so you can look on your phone and see the make-up of who is at a bar you might want to go to. marin residents will continue to pay $75 annual parcel tax to replace pipes and improve water delivery system used to fight fires. yesterday the board approved extending the tax for the next 19 years. it expired last month. the fee has generated 70 million dollars in the past 15
years for improvements. the parcel tax is considered a fee so it did not have to be approved by voters. minute-maid can keep labeling one of its products pomegranate blueberry even though it contains little of either. lawyers argue that the product contains zero -- 0.3% pomegranate juice and 0.2 blueberry the rest is apple and grape. the court ruled that fda regulation as will you products to be named after a flavoring juice that is not the primary ingredient. the owner of carl's jr. and hardy's is going public for a second time filing with the sec yesterday. it went public in 1981, but became private two years ago. this time, they hope to raise
100 million dollars and payoff debt. it lost 19 million dollars last year. based in southern california. >> in this part of the country it is carl's, jr. midwest it is hard's and they sell the famous roy rogers fried chicken, yum back there. >> you miss that? >> i do. >> don't be so mopey because it is going to be all good. >> i'm not mopey, i thought he was. we have -- [ talking over each other ] we'll get to that eclipse forecast and i'll get you the beta breakers also. good morning, looking at crescent moon and the bay bridge and haze notice how clear the sky is this morning. temperatures cooler upper 40s to low miffties in most areas
. -- . small craft advisory for the bay shore 64 sausalito today low to mid 70s through most of the north bay valleys santa rosa upwards towards ukiah 70s to low 80s breezy at your beaches mid to upper 50s mid to upper 60s east bay shore to fremont at 70° inland mid 70s 75 dublin near 80 antioch. mid to upper 70s -- the breezes will keep -- same
breeze coming off the land around santa cruz and keep you around 70. 7:15 first pitch slightly breezy taper during the game. 61 dropping to 55°. temperatures upper 40s to low 50s tonight under a partly cloudy sky. the solar eclipse the annular solar eclipse it takes it past tahoe, chico towards eureka he's what we will see in the bay area if if you look west start -- starting 6:30 that's when it will be the most prevalent 84% of coverage. low 80s inland over the weekend, low to mid 70s around the bay low 60s at the coast cooler monday and tuesday another warming trend for wednesday and thursday. a few accidents this
morning, new one just reported in livermore, westbound 580 at first. injury accident in napa, highway 29 at 221 there could be a lane blocked in both directions definitely northbound right lane blocked. earlier crash still out there chp eastbound 80 actually north 680 to eastbound 80 not causing delays there could be slowing westbound 80 out of fairfield we'll look at some of those traffic sensors in the area. also, northbound 280 at hickey still an accident in the left lane. not causing much slowing yet. westbound 80 traffic in berkeley is fine towards the bay bridge toll. as we take a look in the south bay headlights moving well for northbound 280 out of downtown san jose, roadwork on highway 17 out of santa cruz mountains summit out to bear creek until 6:00 this morning.
. checking bay area baseball, both the a's and giants tuned up for this weekend's bay bridge series with winds yesterday. the a's beat the rangers 5-4 in 10 innings in texas, while giants top cardinals 7-5. tonight parker faces zito, 7:15 in the series opener. america's cup organizers have a new partnership designed to help energize young people to sail. a boat was on display at union square park yesterday. >> tonight is a milestone and america's cup is announcing the red bull youth america's cup. as a young kid that always dreamed of competing in the america's cup, now there will be a real pathway for all those out there
>> america's cup organizers want to make the cup a global sports lifestyle and media bran. the race will be held in the city next september. more than 100,000 people will descend on san mateo this weekend for the 6th annual maker fair dozens of inventors and innovators will showcase their creations in fields from electronic arts robot technology, computer science and creative engineering showing off light sculptures, robots built from scrap metal. the fair takes place at the san mateo county events center from 10 to 8 and 10 to 6 sunday. a lot of school groups are have entries. 5:24. long wait is over facebook makes public debut. live team coverage from facebook's headquarters and new york. berkeley decides to rewrite its policy on dealing
park with mark zuckerberg will soon be ringing nasdaq's opening bell. >> reporter: good morning. the people in the building behind me will be millionaires this morning. mark zuckerberg will get the biggest payout. he started facebook as a 19-year-old harvard university student. his average employs today will have shares worth 2.9 million dollars. we asked a tech expert in morning what he thinks about the company's staying power? he tells us, he's impressed. >> they've got almost a billion eyeballs in the two years that we've been working very closely with their prefered marketing develop routine they've definitely matured their understanding of how facebook is going to be a premiere digital marketing experience. i have every confidence in the world, i'm betting my career on it. >> reporter: here are pictures
of what was happening overnight. they had an all-night hack-a-thon that's when employees do coding, they work on some project other than what they do everyday. there was a deejay and red bull to fuel the night. they say this is how they celebrate. today's ipo will make facebook larger than many big companies disney, ford, mcdonald's and mark zuckerberg will be ringinging that opening bell at 6:30 this morning. -- amy hollyfield, abc7 news. our team coverage continues in a few minutes when we go live to the nasdaq in new york to hear the concerns of some investors. we'll be live in menlo park when zuckerberg rings the nasdaq opening bell. >> winds have died down but not before bringing down power lines in the north bay. pg&e crews are working to restore power to hundreds of
customers. terry mcsweeney is live in novato at the scene of one trouble spot. >> reporter: between 500 and 600 customers without power it is going to be hours before they are back online. pg&e asked us to move our truck a block from where they are trying to get a lot of work done. you are going to see a man standing in front of a power pole that is at a peculiar angle. i think the truck about to pull into our way here. that power line should be straight up and down. look at pictures we have. the lines are dangling all over the street at sequoia glen lane in novato. these power lines are deenergized now there is no power going through them. we are told they will be bringing in a new --
as terry was saying crews trying to restore power he's going to move that truck. we'll hear from him in a few minutes. in san jose a hearing is scheduled today to determine what should be done with the nearly 1500 graves unearthed during construction. during the expansion work they excavated what used to be a cemetery in the hospital parking lot. they hope to -- a woman hopes to find and bury her grandmother who died in the hospital in 1915 when it was santa clara county hospital. >> her husband, my grandfather and my mother being the est child did not have the money -- the eldest child did not have the money to bury her at the catholic cemetery. >> so she was buried in the hospital's cemetery. years later the family heard the bodies had been moved to
other cemeteries for hospital expansion but they couldn't find her. the family let the issue rest until this new discovery. berkeley spending $20,000 to review police department's media policy after chief meehan was criticized for sending a sergeant to a reporter's home in the middle of the night to ask for changes in a story. meehan throughout the reporter misinterpreted what happened during a public meeting the chief apologized calling his decision an error in judgment. the company in irvine has been hired to compare the berkeley police department with others when it comes to media relations and how to improve them. san jose will resume clearing out homeless camps the city will cleanup three homeless camps in the next month after residents complained. crews will target a three
homeless camps. the decision comes near three months after san jose police stopped providing security for cleanup crews because of legal concerns and now to handle homeless peoples' belongings. transportation agency meets to consider expanding the use of cameras on buses icam have been looking out for vehicles people parked illegal in bus-only lanes. the program has cameras on 30 buses mostly through chinatown. they might not impact traffic yet but they have more than doubled the number of citations. that translates into revenue from $187,000 in 2009 to $314,000 this year. mimi hopes to have 1,000 buses he -- muni hopes to have 1,000 buses equipped with the cameras by next year. investigators keeping within eye on menlo park and the other on wall street in anticipation of facebook's first day of public trading.
one of the biggest initial public offerings ever bringing the company's value to 104 billion dollars. more on the friend did, -- with more and the frenzy scott goldberg joins us now from new york. you are there, but the bell will be rung from menlo park. >> reporter: yeah, none of the facebook executives are coming to new york to physically share this moment with their friends around the world. they will use technology to ring the bell in california. shortly after that, those executives will be very rich. in eight years mark zuckerberg has again from dorm room geek to nasdaq diva new estimated worth 20 billion dollars after his company stocks starts trading publicly at $38 a share. people like. >> i read things that say you should invest in companies you like or no.
i -- like or know. i know this company well. >> reporter: big time investors snatched up everything in this initial public offering. some will try to sell for a quick profit today if you buy in at that point you might be paying two or three times the opening pry. >> i would wait for a half hour -- for that to settle a bit. >> reporter: there are other concerns about the company now valued at more than 100 billion dollars. general motors stopped buying ads on facebook saying they weren't effective. company insiders have been unloading a lot of their stock suggesting they may not like its long term potential. there's also the cautionary tale in the 90s 10 shares went for $1,000 today they are worth nothing. of course if you bought 10 shares of apple for $220 in 1980, they are worth more than $44,000 today. to get ready for this big day
facebook employees stayed up all night, you have been talking about the hack-a-thon where they try to brainstorm the next big facebook idea like the like button. the hack-a-thon will end when mark zuckerberg rings the bell from menlo park and we hear it here at the nasdaq. scott goldberg, abc7 news. the big guys jump in first then the little guys. what about them? what should they be looking for? >> reporter: well, i guess the advice that most people are giving to regular investors is just hold on for a little while, if you can. this could go a few different i was. it could be like apple where facebook steadily gains value over time it could be like google exponential growth or groupon where it fizzles more than 100 billion dollars of value more than disney, there are people out there who say facebook is overvalued.
>> scott goldberg live at the nasdaq, thank you. he will be there for the frenzy in about an hour. >> the value is incredible to think about more than disney, starbucks and hp combined. mind-boggling. you raised a good point, you don't know what is going to happen. it could soar it could be like tkpwrupon which is trading below the -- groupon which is trading below the price. the numbers we can rely on are weather numbers. >> it will be interesting to see what it opens at. we are opening at 10 miles per hour our fastest wind in concord out of the south at the san ramon valley. good morning winds from yesterday temporarily gone they will be back over the bay water and ocean northwest wind 25 to 35 miles per hour small craft advisory today until 3:00. 7:00 mid 40s to around 50 partly cloudy sky, a lot of
sun towards lunch, warmest weather inland napa, fairfield, antioch low 70s mid to upper 60s in the rest of the inland valleys, low to mid 60s bay shore beach into san francisco dress for mid 50s 4:00 low to mid 70s north bay and east bay mid to upper 60s bay shore to the south bay mid to upper 50s along the coast into san francisco, 7:00 50s low to mid 60s in the north bay and east bay valleys. you will be sneezing if tree and mold get to you maybe even grass and ragweed because they are moderate. upper 70s to low 80s calmer saturday to monday around inland neighborhoods low 70s around the bay upper 50s to low 60s. time for a check of traffic. new crash just reported in the south bay westbound 237 on the lawrence expressway quite a few accidents this morning
northbound 29 at 221 just cleared injury crash. also slow through antioch not as bad as we normally see during the middle of the week still 30 miles an hour lone tree to somersville hillcrest to 242, 16 minutes. accident livermore westbound 580 on the shoulder slow through the altamont pass at 36 miles an hour. roadwork on highway 17 through the santa cruz mountains until 6:00 this morning. 48 miles an hour, in both directions between summit and bear creek, usually just before 6:00 is when we see traffic slow northbound they try to hold traffic off when they clear the cones. live shot in san jose this is 17 out of the santa cruz mountains, still fine here and north 280 looking good out of downtown san jose. 5:40. leave the bling home.
your gold. officers are distributing fliers to shoppers alerting them to a rise in gold theft. criminals are targeting people predominantly hispanic. an effort to name the main post office in downtown mountain view after a fallen soldier is set to move forward next week. 26 year -- 25-year-old ballard was killed in iraq in 2004 by an accidental discharge of a machine gun on his tank. he was honored that year. his mother approached the mountain view city council last month to name the main post office after her son. the city council expected to authorize a letter of support tuesday. mail processing centers in burlingame and petaluma are on a list of 250 facilities the postal service says it will
close starting this summer. i will save a billion dollars a year at the cost of 13,000 jobs officials have found a way to keep 23700 rural offices open the postal -- -- 3700 rural offices open. no word on where the burlingame and petaluma facilities are on the timeline. facebook goes public. should you press the like button on the stock? bloomberg business report coming up. san francisco police show off the haul of con-artists targeting the elderly. why they think some have not come forward. walk expect from the ring of fire eclipse that will be visible this weekend.
temperatures across the bay area mid 60s to upper 60s from richmond, san francisco to oakland and san mateo low to mid 70s through the southern peninsula into the south bay 80s possible in the east bay valleys breezes along the coast. live doppler across the state everything has been dry the last three hours expect sunshine and mid 80s through the central valleys 69 big sur the sierra this weekend a lot of sun 60 today to 73 sunday near 81 in yosemite sunday. afternoon sunshine and temperatures in the mid 70s around l.a. upper 60s in san diego. 5:48 now. we are getting our first look at the loot gathered in an a scheme targeting elderly
chinese women. police say suspects stole more than $850,000 worth of cash, jewelry and other items from victims in san francisco, boston and new york. investors say the six suspects preyed upon victims' superstitions getting them to hanover items willingly. police arrested the suspects at san francisco airport this month. investigators hope more victims will come forward. marin energy officials have struck a deal to buy electricity from the san rafael airport which will build a solar installation on its rooftops. the project will be the county's largest and will supply enough energy to supply nearly 300 homes a year. the energy authority sells energy to 14,000 customers and plans to add 80,000 more in the next several months. it is considering possible sites at parking structures in larkspur, novato and san rafael. talking about solar power
this weekend you can catch a glimpse of a rare partial annular solar eclipse. it will begin sunday night at 5:25. prime viewing after 6:30 in the bay area we'll see a partial eclipse the sun will look more like a c than a halo. scientist warns staring at the sun is dangerous they recommend you have special eclipse glasses. >> they are mylar coated with aluminum on both sides. they are designed to save your eyes. >> you can buy them at a telescope shop. the total eclipse will be visible near the california/ oregon border. where do we hop in the car and drive to for best viewing
mike? >> good question. i made a graphic, you can see it moving from right to left across your screen from the bottom to the top it crosses over reno, chico and you are reek cat best areas to see the -- and eureka, the best areas to see the total eclipse. that's what it going to look like at about 6:33 when it peaks sunday evening beginning at 5:13. 84% of it covered not too bad if you don't want to drive a east-northeast or to the north. right now nothing is going to stop the sun this morning we have a lot of sunshine on the way and clear skies a little hazy, 42 napa, a lot of upper 40s to low 50s antioch the exception at 61. monterey bay inland, gilroy and santa cruz mid to upper
40s. sunny, warmer, a little breezy, milder, calmer over the weekend and dry the entire seven day forecast. everybody going up today from santa rosa two, san jose three, fremont about six degrees. south bay low to mid 70s up the peninsula low 70s end up in the mid 60s mid to upper 50s along the coast this afternoon low 60s downtown and south san francisco mid to upper 50s at your beaches and north bay as you head inland 20° warmer mid to upper 60s for most of the east bay shore oakland 68, fremont warmer at 70, mid 70s dublin 75 everybody else in the upper 70s to low 80s, 59 monterey, breezy chill off the ocean down off the mountains, santa cruz 70 mid to upper 70s inland bay bridge series over at at&t park tonight 7:15
first pitch 61 dropping to 55°. temperatures will drop into the 40s and 50s under a partly cloudy sky. it going toe be quiet this weekend. if you are doing a little running sunday morning, beta breakers check out this temperature, 52 to 56 partly cloudy if 7:00 to noon. slightly warmer over the weekend a dip in temperatures monday and tuesday warmer wednesday and thursday next week. good morning. westbound 237 at the expressway accident on the off-ramp, also construction 280 the connector ramp to highway 85 should be reopened in 7 minutes by 6:00. traffic is a little slow northbound 101 san jose alum rock to mckey some brake lights looking good everywhere else. a few accidents none causing big this case a lot clearing
bay bridge toll, friday light here. you are good to go into san francisco. also beautiful ride across the golden gate bridge right now and problem-free out of marin county. the waze traffic map shows slowing through the altamont pass, traffic slow westbound 205 out of tracy moving at around 34 miles an hour. you can get speeds for your commute by going abc7news.com/ waze to download our free app that you can put on your smartphone or iphone. 5:54. we continue our facebook coverage of the ipo with a look at whether the it may be a good buy for you. >> here's jane king. good morning. many investors expect facebook shares to move higher than the $38 offer price. it will take time for facebook to deliver results. >> advertising revenue could
grow tenfold once facebook gets serious about advertising that's the big if. we don't know when mark zuckerberg is going to allow the revenue people to take over and i don't think they will ever risk diminishing the user experience. >> zuckerberg a teenager when he co-phoned facebook in 2004 and eight years later doesn't sound much like a ref thank you-delivering chief exec. >> facebook has this -- this mission that is more than trying to build a company it has a -- we are trying -- we are trying to do this thing in the world. >> this thing more than 104 billion dollars. some investors say not worth it. some say think twice before you buy. they've shot for the moon they got the stars this particular ipo is the biggest pump and dump in history. >> i'm jane king.
san francisco police need your help to identify three bank robbers two work together the pair described as white males late 40s average height and weight the one on the right missing three fingers from his right hand and two from his left. the third suspect black male in his 40s average height and weight, last seen wearing a black curlly wig and eyeglasses they are believed -- responsible for several robberies tomorrow you have an opportunity to celebrate the golden gate bridge's 75th anniversary by being the
bridge. bridge officials are inviting the public to gather and stand in the shape of the bridge and the number 75 and be photographed together. the image will be made into a postcard and everyone there will be e-mailed a copy. if you want to be part of it show up at 9:00 the picture will be taken at 11 a.m. sharp. yes, you should try to wear red or orange to blend with the bridge. >> indade you should. 5:57. ahead at -- 6 a.m., facebook friday. we'll take a closer look at the frenzy behind today's stock debut and what i means for the market. another silicon valley tech giant could be getting ready to downtown -- to downsize. new speculation surroundin