Tuesday, September 4, 2012

FACEBOOK BREAKS $18, HITS A NEW ALL-TIME LOW The Man Behind Facebook’s I.P.O. Debacle



It is David Ebersman’s fault. There is just no way around it.  Mr. Ebersman is Facebook’s well-liked, boyish-looking 41-year-old chief financial officer. He’s not as well known as Mark Zuckerberg, Facebook’s founder and chief executive, or Sheryl Sandberg, its chief operating officer and recently appointed director. But when it came to Facebook’s catastrophe of an initial public offering — the stock reached a new low on Friday, closing at $18.06 — it was Mr. Ebersman, not Mr. Zuckerberg or Ms. Sandberg, who was ultimately the one pulling the strings.

A lot of ink has been spilled over Facebook’s I.P.O., with investors and pundits mostly pointing the finger at the Wall Street banks, particularly Morgan Stanley, which led the offering, and at Nasdaq, whose numerous computer glitches on Facebook’s first day of trading undermined confidence in the stock. They clearly deserve blame.  David Ebersman, Facebook’s chief financial officer’s name, however, is mentioned only occasionally, usually in passing and typically only among Silicon Valley’s cognoscenti.  And yet if there is one single individual more responsible than any other for the staggering mispricing of Facebook’s I.P.O., it is Mr. Ebersman. 

He signed off on the ever-increasing offer price, which ended up at $38 after the company had originally planned a price range of $29 to $34.  He — almost alone — pushed to flood the market with 25 percent more shares than originally planned in the final days before the offering. And since then, as the point person for investors, he has done little to articulate how or why the company’s strategy will lift the stock price any time soon…..




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