Morgan Stanley to lead Facebook IPO?

What do you guys think?

A slap in GS and JPM's face?

From Bloomberg:

Facebook Inc., the world’s largest social-networking service, chose Morgan Stanley to take the lead on its planned initial public offering, according to three people with knowledge of the matter.

Morgan Stanley, the New York-based investment bank, gains the coveted lead-left position on the IPO filing, said the people, who asked not to be identified because the matter is private. That designation typically results in a larger share of the fees collected by a securities firm for handling an IPO.

4 Comments
 

I have heard more than one person speculate that MS got Lead Left because of the GS fuck-up on the private offering earlier this year.

MM IB -> Corporate Development -> Strategic Finance
 
Best Response
SECfinanceI have heard more than one person speculate that MS got Lead Left because of the GS fuck-up on the private offering earlier this year.
I have heard this too, but am not putting much stock into it for a few reasons: a) No reason to believe MS didn't win this on merit alone, they have a top notch tech team and have been killing it lately b) I doubt the FB would leave the ultimate decision on lead left up to some spiteful revenge what basically amounted to a PR blip c) The 'fuck-up' last year in the private placement was more an embarrassment to GS and affected their domestic clients more than the pricing or the money raised for FB. Other than US clients not getting to invest, the offering went pretty well. Maybe FB thought this would affect GS's ability to successfully distribute the IPO, but I doubt it. In general I think the private placement issue last year was overplayed, but I could be wrong.
 

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