via NY POST
Shut your pie hole!
That’s the message that notoriously press-averse Facebook founder Mark Zuckerberg has sent around Wall Street recently, telling Morgan Stanley, JPMorgan Chase, Goldman Sachs and the other banks involved in his company’s $100 billion IPO to stop leaking juicy tidbits to the media and to stop talking up the stock offering to clients, The Post has learned.
Zuckerberg, 27, whose stake in the social network giant amounts, in round figures, to around $28 billion, wasn’t too happy that some aspects of the much-anticipated initial stock float — including the fact that its filing with the Securities and Exchange Commission would take place on Feb. 1 — were disclosed. Facebook officials let the bankers know about it through phone calls and e-mails, sources said.
Facebook officials also appeared to also be irked about what appeared to be subtle sniping in the press between Morgan Stanley and Goldman Sachs centered on which firm would grab the coveted lead underwriting role on the IPO — the highest profile since Google went public with a $1.7 billion offering back 2004.
Zuckerberg’s warning appears to be working.
The powers that be at each bank, sources said, have reacted by warning employees not to discuss the filing.
“[Facebook] wants to be taken seriously and viewed as a blue-ship company,” said one bank official familiar with the listing, but not authorized to speak publicly.
Facebook and its team of underwriters are in a so-called quiet period since filing the paperwork, known as an S-1, with regulators.
Although the Facebook e-mails and calls contained no threats, running afoul of Zuckerberg could result in a bank getting dropped from the IPO. Just two years ago, UBS was dumped from the group of banks handling General Motors’ much-anticipated IPO.
For the banks, the Facebook IPO means more than just the $40 million it could earn from the deal. Indeed, landing the prestigious Facebook offering is likely to have a halo effect that could help a bank land future tech IPOs. Getting booted from the deal can have the same halo effect — in reverse.
At lead underwriter Morgan Stanley, the reaction to Facebook’s warning has been quick and unambiguous. Its private wealth advisers were admonished to stay mum on the upcoming IPO — a difficult task considering clients are clamoring to get in on the action.
The hush-hush mandate comes as the underwriters are gearing up in the coming week or two to hash over — with Zuckerberg, CFO David Ebersman and COO Sheryl Sandberg — the most appropriate valuation for the Menlo Park, Calif., company.
Despite the white-knuckle media frenzy surrounding Facebook, underwriters will be aiming to hit a sweet spot of offering the social media giant’s shares at a level that deep-pocketed institutional investors can wrap their head and their wallets around.
A $100 billion valuation for the IPO would peg Facebook at an eye-popping 100 times its profits of $1 billion in 2011.
Read more: http://trade.cc/ahyb
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