Paul Kedrosky was interviewed about the Facebook-Goldman debacle last week, and he had some pretty funny stuff to say about it. There's definitely some seller's remorse over at Casa Zuckerberg, as the new rash of fleas has him wondering exactly what breed of dog he chose to lay down with. As Kedrosky so eloquently points out, Goldman would be highly embarrassed if they were actually capable of embarrassment. Enjoy:
By the way, if you're on Twitter and you don't follow Kedrosky, you should. He at @pkedrosky and he's very often hilarious.
What's this about? Haven't seen/heard anything about the deal falling through...
Anyone know if Goldman's Regulation Arbitrage desk is taking on interns this year?
Who would you all rather work for, Apple/Facebook or Goldman? I'd say Apple/Facebook in a heartbeat..
Any BB in fact. Unless Apple/Facebook develop trading arms.
Regulation arbitrage... Goldman's probably regretting letting that desk put on that trade in such public fashion. Regulators might narrow the spread.
If that's really true, some might say this could be an early sign that Goldman is peaking. It used to be that everyone was happy to be doing business with Goldman. If Zuckerberg is having doubts about doing business with them rather doing the same thing through some other firm, this could be the first event in a row of dominoes that will probably take 10 years to fully play out.
Random, but did you know Marky Mark Zuck has a sister that works for FB!? Another recent FB/Bloomberg video (ignore the flamboyant interviewer):
Thought this worked out ok with Facebook raising the cash they wanted and the offer/fund being completely oversubscribed? Maybe even better to have foreign investors who won't be as public about the company as domestic investors.
wow that lady's stunning
wow that lady's stunning
This is more a government regulation issue than a Goldman issue. If FB went to JPM and tried doing the same thing the results would have been the same. I don't see the issue. Facebook is a business, not a charity. Goldman will make the Zuck richer than he could imagine.
All in all a pretty good deal for FB other than the PR snafu. Goldman will do fine although future private placements from them will be under closer scrutiny.
I just don't think Zuckerberg and the FB crew thought it through. Let's face it, they have their own pretty massive PR issues with privacy and everything else. What on Earth possessed them to take on the baggage of the world's most hated investment bank as well? We might think that all the Goldman hullabaloo is much ado about nothing, but the average Facebook user thinks Goldman is the Devil. And you can say "Who cares what the average Facebook user thinks?" but I guarantee you Zuckerberg cares.
I get the feeling he was enchanted by Goldman's pitch and didn't think about all the shady shit that goes along with partnering with those guys. It's like Kedrosky said, if you can find the most razor-thin interpretation of the tiniest statute of a law where the clear intent of the law is the exact opposite of that interpretation, that's where you'll find Goldman Sachs making a buck. We might applaud them for their audacity, but believe me, the rest of the world doesn't.
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