May 21, 2012, - 3:16 pm

Moronette: Chick Gave Up Facebook Millions to Be on “The Bachelorette”

By Debbie Schlussel

While the Facebook IPO stock offered Friday was a bad deal (the stock is now trading at $5 below the initial offer price), early investors and employees with at least four years there became multi-millionaires on Friday. They had the last laugh. And the joke was on everyone else. But the biggest idiot was Ali Fedotowsky, who left Facebook after three years (she needed four for her right to Facebook stock to fully vest) and gave up all rights to any Facebook stock. The reason the 27-year-old walked away from her job (after Facebook was already big and destined for riches) and the millions she knew she would make is demonstrative of how sick America has become: that people are willing to throw away millions in order to seek brief reality TV fame. But, hey, she made the cover of “People,” one week. Glad she’s got her priorities straight.

In today’s America, far too many people would rather aspire to be Kardashians or get pregnant and have a kid to star on “Teen Mom” than take the steps–easy steps that were already in her grasp, in Fedotowsky’s case–to become a multi-millionaire capitalist. That’s part of why we’ve lost our way. Our sense of greatness and achievement is warped because Hollywood has attacked the real achievers (businessmen and capitalists) and promoted the real losers (reality show morons) for so long that we’ve come to believe the baloney.


As of the IPO on Friday, the average paper value of equity for a Facebook employee was $4.9 million, excluding [Mark] Zuckerberg’s share. . . . [Fedotowsky] left her job in Facebook’s ad-sales department in 2010 to star in her own reality TV show, “The Bachelorette.” Ms. Fedotowsky left behind her unvested, restricted Facebook stock units, says her spokeswoman, who says Ms. Fedotowsky isn’t available to comment.


In an interview at the time with the Associated Press, Ms. Fedotowsky said “I decided I wanted to do what’s best for me, and that’s putting love first.”

Puh-leeze. If you believe that, I have a foreclosed former “The Bachelorette” mansion to sell you. Fedotowsky doesn’t care about love. She left Facebook and gave up her stock to become famous (and to become famous by appearing on what is essentially a concubine show on which the participants constantly make out and eventually have sex with each other). Like almost every other person on that stupid, vapid show, her “romance” with the “chosen” idiot didn’t last long. But, hey, she’s now hosting some little-watched reality show on one of the myriad unnecessary cable channels. (Before that, San Diego’s FOX News affiliate hired her straight off “The Bachelorette” to be a reporter on fluff.) Stupid move by a stupid girl in our “me-me-me, watch me, look at me, I’m famous” culture created in no small part by Facebook itself.

(I contrast this with my own experiences, when ABC would constantly invite me to be on “Politically Incorrect,” its then-late night show. While I was on the show a lot, I frequently turned down appearances, such as the ratings-sweeps-period Valentine’s Day show about sex. I’d rather maintain the dignity of not talking about that kind of stuff on TV than get the fame and exposure. People who don’t care about this are usually low-class and probably low-lifes.)

And there are more sympathetic others who decided to forgo the early Facebook stock which would have made them multi-millions. There’s the story of Pejman Nozad:

In 2005, Facebook founding President Sean Parker [DS: he's the Napster founder played by Justin Timberlake in the movie, "The Social Network" (read my review)] approached him about renting 165 University Avenue in Palo Alto, Calif., a property owned by Mr. Nozad’s partners. The deal came with a chance to buy $50,000 of stock in the fledgling social network—but with strings attached to the lease.

Mr. Nozad’s partners said no. “We put on our real-estate hat, rather than our investment hat,” he remembers. By his math, those shares in Facebook would be valued at about $50 million today.

So, would you have made the right move here? There are plenty of start-ups that don’t succeed, and their early investors are left with worthless paper. I’m not sure I would have taken that deal in 2005 either.

I recently posted about a starving artist who took early Facebook stock instead of getting paid the tens of thousands he really needed to survive. Now, he’s worth around $250 million because he took a chance on Facebook.

Would you?

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19 Responses

Facebook is a fad, that will quickly turn into an albatross around any invester’s neck. I think the people that are buying the stock are completely ignorant of the Facebook business model (if there is one).

FrenchKiss on May 21, 2012 at 3:30 pm

There is a documentary about the start of the computer business that interviews an early apple employee. He was something like employee number 7, about 16 years old and working in the garage with everyone else. One time they wanted to pay him with “stock” and he was ok with it, but when he got home his mom yelled at him to go back and get paid in “real” money. He did. He then goes on to say he spent that paycheck on an eight track player for his car.

It is that ability to take that risk or leap of faith that can reward you in the future. It is what business people have to do, put it on the line. Some succeed, most don’t. That is also what is being exploited by the liberals, working on a persons fear. Telling them it is not “fair” that a multimillionaire who worked and made those decisions should keep his earnings. That a sports athlete or celebrity has more rights to their money than someone not on TV, who invented something like the actual TV itself. Our society is looking for the easy way, reality shows, lottery, law suits and just good old fashioned welfare.

Ayn Rand broke it down to the “producers” and the “looters”. The producers do not need the looters to survive. The looters desperately need the producers to survive. This is what drive the “rich” and business’s to move to different states or even countries to escape the worse looter and settle for the lesser looter. Look at what may happen in France, 75% income tax rumor is already starting people to prepare to move out.

ender on May 21, 2012 at 3:51 pm

    Ender,

    I understand the argument, but in general currently this money is not made via work, but essentially gambling, often with somebody else’s money.

    Furthermore, there is a question of what lessons these humongous amounts of money made essentially out of luck teach their 20 something earners? Do you really think that a system that rewarded that painter with 250 million is healthy? Does it reward effort/talent/intellect or sheer risk taking?

    Do you think there there is a link between all this and the sequential bubbles that bring the US down?

    The PostWest
    http://www.fallofknowledgeandreason.blogspot.com

    oao on May 21, 2012 at 8:26 pm

If it was me I’d have fully vested and been set for the rest of my life.

The idiot girl threw it all away for love! Of course you can’t put a price tag on it but no one should be a starving artist.

I wish I had her stock options that she gave up instead.

NormanF on May 21, 2012 at 3:53 pm

    I am not that willing to accept that she did it for “love”.

    She probably thought that the TV fame would bring her much more income than the uncertain gain from FB shares.

    She probably also did want to have some fun and be part of the entertainment world. And maybe get a rich spouse to boot. This society makes this stuff very attractive.

    The PostWest
    http://www.fallofknowledgeandreason.blogspot.com

    oao on May 21, 2012 at 8:32 pm

the should dispatch People mag back to her for the follow-up entitled Why I Left Facebook (she seems to relish in the fact that she is the leaver, not the left) and not let her say it was because she followed her heart. Where did that leave you, sweetheart? That was a coveted job to get you walked away because, why? Wasn’t there some nerd working there who was also slated to make big bucks you could have shacked up with for a chance to double down on major millions? It seems you have no problem kissing perfect strangers on television, why not throw a little leg to the bean counter down the hall, it would have been a better bet than going for some other fame hound that went on that show with 24 other dudes for a chance at someone’s sloppy seconds (or 23rds). DS you are right, this is a great illustration as to what is wrong with the world today. Ali, go away from the spotlight.

TS loves DS on May 21, 2012 at 4:12 pm

What a MORON!!!!

Facebook may hit grand heights, or it may be one of the biggest failures of this still young century, but you do not walk away from the chance to be loaded (which she can sell in about six months, per SEC regulations) in order to be “famous.” But who knows, maybe she will be the next celebutard to make it rich. Life is often a role of the dice. Sometimes you strike it rich, and other times you crap out.

Jonathan E. Grant on May 21, 2012 at 4:18 pm

Those reality shows run off pure capitalism. Not sure why you think that reality tv exists because for any other reason other than the fact that they make the networks rich with $$$.

col on May 21, 2012 at 6:28 pm

    so col, let me get this straight. Because something makes someone else a lot of money, its all good? Capitalism is a great thing, I agree. But it doesn’t mean it doesn’t spawn bad programming, worse people, and fully erode any morals this country has left. So Ali is a capitalist now? Cocaine makes the cartels billions of dollars, let’s party. Cocaine must be popular because if nobody was snorting it, mules wouldn’t be smuggling it. Your insight is troubling.

    TS loves DS on May 21, 2012 at 6:53 pm

This stupid fool also happens to be on the cover of the fortnightly “The Improper Bostonian”. I skipped the interview because she looked bubble-headed!

I don’t watch shows that highlight the worst of American (lack of ) values…I can see it in real-life when I leave my home.

In a time where narcissism is off the charts, these lucrative reality looking-for-love shows can’t deliver because people aren’t decent en masse anymore. It turns my stomach.

Skunky on May 21, 2012 at 7:03 pm

Spreading your legs for fame is not love. It is not even remotely intelligent. Ms. Fedotowsky would probably see romance in what goes on at an urban Greyhound Bus station.

Worry01 on May 21, 2012 at 7:42 pm

“I contrast this with my own experiences, when ABC would constantly invite me to be on “Politically Incorrect,” its then-late night show. While I was on the show a lot, I frequently turned down appearances, such as the ratings-sweeps-period Valentine’s Day show about sex.”

By any chance, do you recall who wound up appearing on the show in place of you that evening? My guess is that it was either Christine O’Donnell or Victoria Jackson, waving a Bible in the air and babbling incoherently about how Jesus hates sex.

Irving on May 21, 2012 at 8:26 pm

‘You stay classy, San Diego!’

brickwood on May 21, 2012 at 8:58 pm

Facebook is down $4 since its IPO. With a P/E of 88, why would anyone buy it? Since the “moronette” would have to hold her shares for 6 months before selling, she might have done the right thing. I’d be surprised if Facebook has any value left in six months at this rate. Dumping FB shares might not have been all that stupid, especially if she didn’t like working there. No, if she’s a “moronette”, its not for this reason.

FrenchKiss on May 21, 2012 at 10:26 pm

I wouldn’t. When an IPO starts off that high, buying stock then would be buying high, and also, one can probably only buy a handful. Yeah, I know, Google has been different, but most IPOs that start high don’t stay there.

On Ali Fedotowski, even if one takes her comment about putting love ahead of those millions @ face value (in a manner of speaking), how did she expect to find love in a reality show, w/ so many idiots going after her and winning random contests? (Incidentally, is it just me who finds jarring the fact that after the show is over, few of them actually marry, but just date for some time and then call it off? If that was the idea, call it something else other than the bachelorette, since marriage is not what follows.) She could just as well have used e-harmony, or some such service.

However, I disagree w/ FrenchKiss above. The way to determine its chances of success would have been to look @ earnings reports for the last several quarters, see the trends and then determine whether it’s likely to sustain the revenue needed to sustain those prices. While one can’t use insider information for trading, one can use insider information to make decisions about whether to remain in the company or not, and that’s what she should have done. After her stock had vested, she could always do a same day sale (and discover a year later the tax implications of it) and then quit.

As for David Choe, he took a big gamble, and luckily for him, it paid off. I have no idea whether he did any analysis of what numbers FaceBook would hit when it debuts, but at least in his case, he’d have made a decision on his fortunes based on his assessment of the probabilities, and gone that way.

However, Ali’s move is irresponsible for another reason – in this economy, w/ so many jobless, she tosses away a job in one of the few companies not bleeding red ink. Even if and when she does find love, I can bet her future hubby wouldn’t be so thrilled about her pissing away those millions.

Infidel on May 22, 2012 at 12:09 am

That reality shows are whats popular says more about us than Hollywood.

myother on May 22, 2012 at 9:26 am

As the great Bugs Bunny would say, “Whata Maroon!” Ms Fedotowsky had the chance to rake in million and she comes up with nothing. Even if you buy her excuse that she did it for “love” why go on a stupid reality tv show. There are plenty of normal men to pick from. Not candyasses like the putz she wound up with or a girly man famewhores like Jake Pavelka(remember him). Facebook stock may be falling but the people that were in it from start like her came out good. Maybe Ali and the other Bachelor/Bachelorette idiot Vienna Giradi can patch things up between themselves. That way they can make their own RTV show. The title could be “Broke Blond Airheads in Hollywood”. No offense to smart blonds like you Debbie.

Ken b on May 22, 2012 at 11:06 am

My insight is not “troubling”, jut fact. Debbie says real achievers are businessmen and capitalists. Those businessmen and capitalists make money off the backs of said reality show losers. Why one gets respect and the other does not is troubling because they all participate in the same sham.

col on May 22, 2012 at 9:21 pm

Facebook should DIE a fast death. They allow child molesters and perverts to trade online pics of kids they have and or are molesting -WND

bobby99 on May 22, 2012 at 11:08 pm

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