Wednesday, May 9, 2012

How Goldman Sachs Blew The Facebook IPO


From Businessinsider: IPOs are wildly profitable deals for Wall Street investment banks, and they come with huge bragging rights.

So it's no surprise that the biggest Wall Street banks fought over the Facebook IPO for years.
The inside story of the Facebook showdown reveals a lot about the relative status of Wall Street banks in Silicon Valley these days, especially Morgan Stanley and Goldman Sachs.  And it also reveals a lot about Facebook.

Facebook's in its IPO "quiet period" right now, and no one who knows anything is willing to talk publicly about it. This story is based on background interviews with more than a dozen Valley bankers, investors, and executives over the past few months, all of whom insisted on anonymity.
The story starts, as most Facebook stories do, with 27-year-old CEO Mark Zuckerberg, who used to tell colleagues he never wanted to go public...


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