Facebook Tells Its Investment Banks Not to Talk About IPO (Report)
CEO Mark Zuckerberg wasn’t happy that the Feb. 1 IPO filing date and some other details emerged early.
Facebook founder and CEO Mark Zuckerberg and his team told the investment banks involved in the social networking firm's IPO to stop leaking details of the planned offering to the press and stop talking up the stock offering to clients at this stage, the New York Post reported.
The banks include Morgan Stanley, which is the lead firm on the IPO, JPMorgan Chase and Goldman Sachs, among others.
Zuckerberg, 27, wasn’t happy that the Feb. 1 IPO filing date and some other details emerged in press reports early, according to the Post. Facebook is in its so-called quiet period since filing for the IPO. The Post said Facebook officials expressed their concern in phone calls and e-mails to bankers.
Facebook apparently also didn't like that banking giants Morgan Stanley and Goldman Sachs jockeyed for the lead IPO position via press coverage, the Post said.
The big and highly anticipated IPO means $40 million in potential earnings for banks and add to their credibility, which could help them attract future IPO business, the Post highlighted. The banks reacted to Facebook's concerns by warning employees not to discuss the IPO, the Post said, citing sources.
“[Facebook] wants to be taken seriously and viewed as a blue-ship company,” one bank executive told the paper.