The reasons are simple, just ask yourself "do I want Microsoft on my phone?". Yes, there is the answer. No. Nobody does. Microsoft became "uncool" long long ago. Nobody wants an uncool phone.
Microsoft missed the one boat that could have maybe just maybe gave them a fast start in the marketplace, they could have purchased RIM. They could of done away with the old timer brand "windows" for a smartphone, and used "Blackberry". Fact is, when people think about Windows they think about an antiquated PC, not some latest and greatest gotta have it smartphone. Add to the fact that Windows has very little, if any, brand loyalty. People don't feel connected to Windows as something that is a good brand. They think of it as the commodity PC, exactly the monopoly that Microsoft built, and profited from since inception.
The veeps at MS need someone cool to step through the door and get through their thick skulls that "Microsoft, Windows, Windows Mobile, Office" will never be "cool" brands. The brand will always be kind of like "Hormel" in the food space. Even if they did everything right and created the best smartphone OS out there, the masses don't want to be carrying a "Hormel Phone"
That's right, there is only one person that should be ultimately held accountable for the mess. The same person that ensured he had full control via voting rights, the same person that had to sign off on the revenue forecasts, the valuation, and the IPO process.
And, what this person signed off on is, in a nutshell, to pay back previous investors with new investors' expense. This is traditionally called a ponzi scheme. The number pumping, book cooking is the same as Enron, Worldcom, and a plethora of Chinese companies listed all over the world, to list a few. Yes, the bankers help, the auditors help, its a very consolidated effort. In this case, however, you have a person who demanded voting control and voted this all into play. He should be held fully accountable. Don't expect it to play out that way however, because there will be backroom deals, lobbying everywhere, and all sorts of shenanigans to keep the ball rolling
Now the simple fact remains that man, would rather take investors money than give it to them. And he has full control. Let me repeat that with quotes with a personal emphasis "HE WOULD RATHER TAKE YOUR MONEY THAN MAKE IT FOR YOU".
The question of whether or not you think Facebook is a good investment or not is whether or not you think that they are going to successfully use their cash to figure out how to make money off of their mobile users.
And to this I say, they will make nothing close to Google and Apple and probably the top 3 handset manufacturers in mobile. If this is what you think all that matters on FB valuation, then they are worth nothing. On mobile they will be squashed.
It has just been discovered that research causes cancer in rats.