Facebook Chooses Morgan Stanley
According to sources privy to the deal, Facebook has chosen Morgan Stanley as lead underwriter of their blockbuster IPO. The company plans to file on Wednesday under the ticker symbol FB on the New York Stock Exchange, according to PrivCo. The deal is expected to be priced at $38-$40 a share, giving Facebook an initial valuation of $90-95 billion.
Morgan Stanley won the coveted "left lead" position over Goldman Sachs due in part to Morgan's access to legions of generally less-sophisticated retail clients who are expected to run the stock up from the offering price. Goldman will still command a large piece of the deal, but this is a major win for Morgan Stanley's tech banking team.
In my opinion, pricing the deal in the $38-40 range per share is a stroke of genius. When you're dealing with retail investors (who, let's face it, are the rubes who will bid the stock up), less attention is paid to the overall valuation of the company than is paid to a perceived "low" stock price. LinkedIn priced at $45 and more than doubled on the open.
I think it's safe to say the IPO will be a big winner, and a massive feather in Morgan's cap. It's hard to imagine a scenario where the market for Facebook shares collapses in the early going. Of course, $100 billion is a stratospheric valuation, and if the Facebook IPO does what LinkedIn did on the open, that number is closer to $200 billion. One would think that cooler heads will prevail at some point.
I certainly won't be a buyer, but I'll be an avid observer. A lot of people are going to get rich when the IPO finally bows. Unfortunately, I doubt it'll be any of the rabble who scramble for shares in the aftermarket. Be that as it may, there's going to be some smiling faces at Morgan Stanley no matter what happens.






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yea, $38-$40 range. But when
yea, $38-$40 range.
But when it opens for regular folks like me, price will be in the $80 - $100 range.
I won't be a buyer.
^^ correct it will have
^^ correct it will have already doubled by the time I even will be able to use it.
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Eddie, Do you knwo the
Eddie,
Do you knwo the timeline of the whole deal? When will this deal be brokered?
Essentially, I want to know if MS Equity S&T interns will be there when this is brokered and markets are being made...
That would be sick.
Read an article today that
Read an article today that said not to invest..that facebook doesn't have any more upward potential and that it may have grown too quickly.
http://www.irishtimes.com/newspaper/features/2012/...
I eat success for breakfast...with skim milk
GASPARINO: Facebook Furious
GASPARINO: Facebook Furious At Morgan Stanley Over Leak Of IPO News
Read more: http://www.businessinsider.com/gasparino-facebook-...
dmackorth wrote: Eddie, Do
Eddie,
Do you knwo the timeline of the whole deal? When will this deal be brokered?
Essentially, I want to know if MS Equity S&T interns will be there when this is brokered and markets are being made...
That would be sick.
May target so no.
Ahh I see... Well we'll see
Ahh I see...
Well we'll see how it turns out, could get help up a bit. But even so, the market-making and flow immediately after should pretty amazing...
I am sure MS would be the lead market maker
so the bubbletron is fired up
so the bubbletron is fired up and running at full power once again. any idiot who buys this POS deserves to lose his shirt.
JamesHetfield
GASPARINO: Facebook Furious At Morgan Stanley Over Leak Of IPO News
Read more: http://www.businessinsider.com/gasparino-facebook-furious-at-morgan-stanley-over-leak-of-ipo-news-2012-1#ixzz1kwzSe2Lf
HA!
The plot thickens...
Let's see if it actually
Let's see if it actually opens at that price.
When luck shuts the door you gotta come in through the window - Doyle Brunson
This means company financials
This means company financials will be forthcoming...
Making money is art and working is art and good business is the best art - Andy Warhol
I can't believe how insanely
I can't believe how insanely loaded some people are about to become.
Net income of $750mi-$1bil
Net income of $750mi-$1bil with slowing growth in the last 5 years yet some how gets $100bil valuation. How is this possible? Google has market cap. of $188bil but with a net income of $9.7bil and revenues of close to $38 bil. WTF???
Edmundo Braverman
According to sources privy to the deal, Facebook has chosen Morgan Stanley as lead underwriter of their blockbuster IPO. The company plans to file on Wednesday under the ticker symbol FB on the New York Stock Exchange, according to PrivCo. The deal is expected to be priced at $38-$40 a share, giving Facebook an initial valuation of $90-95 billion.
Morgan Stanley won the coveted "left lead" position over Goldman Sachs due in part to Morgan's access to legions of generally less-sophisticated retail clients who are expected to run the stock up from the offering price. Goldman will still command a large piece of the deal, but this is a major win for Morgan Stanley's tech banking team.
In my opinion, pricing the deal in the $38-40 range per share is a stroke of genius. When you're dealing with retail investors (who, let's face it, are the rubes who will bid the stock up), less attention is paid to the overall valuation of the company than is paid to a perceived "low" stock price. LinkedIn priced at $45 and more than doubled on the open.
I think it's safe to say the IPO will be a big winner, and a massive feather in Morgan's cap. It's hard to imagine a scenario where the market for Facebook shares collapses in the early going. Of course, $100 billion is a stratospheric valuation, and if the Facebook IPO does what LinkedIn did on the open, that number is closer to $200 billion. One would think that cooler heads will prevail at some point.
I certainly won't be a buyer, but I'll be an avid observer. A lot of people are going to get rich when the IPO finally bows. Unfortunately, I doubt it'll be any of the rabble who scramble for shares in the aftermarket. Be that as it may, there's going to be some smiling faces at Morgan Stanley no matter what happens.
Can you clarify why MS was chosen? Basically they think that they will be able to get more buyers, as their clients are the type who are more likely to buy this? How does this affect the "legendary" tech group at GS?
I still cannot fathom how
I still cannot fathom how they think Facebook equals 1/4 the value of motherfucking XOM.
Here's how you can back into
To add - I would go long
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