Facebook CEO skips out on Wall Street

Zuckerberg keeps a low profile in analyst meetings leading up to the company's IPO.

By Kim Peterson Mar 28, 2012 6:33PM
You're the 27-year-old CEO of a company heading into a massive and highly anticipated IPO. Do you need to show up for the dog-and-pony show with analysts and investors ahead of the offering?

In Mark Zuckerberg's case, the answer is no. The CEO and co-founder of Facebook is staying away from key meetings with Wall Street investors, preferring to run the company instead.

Facebook is looking to raise $5 billion in the initial public offering, which could happen in May, Reuters reports. It has hired a whopping 31 banks to work on the IPO, and Morgan Stanley (MS) won the coveted position of lead underwriter.

Normally, the CEO is a key figure in these pre-IPO meetings with investors. But so far, Zuckerberg has not shown up. The company was instead represented in a three-hour meeting last week by operating chief Sheryl Sandberg and chief financial officer David Ebersman -- two people who can easily handle any question investors throw at them. Three other executives, including the heads of the engineering and product divisions, also made an appearance, according to The Wall Street Journal.

The reason for the meeting is so analysts can ask Facebook questions they may get from large investors who want in on the IPO.

The following video has more details about the IPO.

Post continues below.
Facebook is already telling people that Zuckerberg will have a low profile leading up to the IPO, Bloomberg reported.

So the big question is whether Zuckerberg's absence will have any impact on the IPO or investors' understanding of the offering. And the answer, of course, is no.

I'm with Henry Blodget, a former Wall Street analyst, on this one. "The way to create the most long-term value is not to spend time sucking up to investors," writes Blodget on Business Insider.

If you are desperate for a successful IPO, and need to convince analysts that they really must throw money at you, then fine. The CEO must be there, and be as charming as possible.

But Facebook has this one in the bag. The IPO will be huge whether Zuckerberg shows up or not. For analysts, the financials will be out and the CFO and business chief are there to answer any and all questions.

Zuckerberg, let's face it, still practically a kid. So he wants to spend his time at the company instead? Let him. And if he bruises Wall Street's ego in the process, I suspect everyone will recover.

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Tags: IPOMS

VIDEO ON MSN MONEY

37Comments
Mar 28, 2012 10:15PM
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F*ck Facebook - still can't believe society places so much aggregate value on mechanisms like this. Certain people, who would have absolutely NO LIFE outside FB, will defend it as a means of "connecting the world", but let's just call it what it is; a social looking-glass for individuals with no sense of creative self-worth.

People (30-35+) whom are successful, and comfortable with their REAL social lives, will agree with this comment. Younger people who LOVE reality shows and "keeping up with the Jones'" will give it a thumbs down. Just a prediction (but it's true). I've NEVER met one socially-affable, successful person over 30 who's said, "Oh, I LOVE FB". Wonder why.

Mar 29, 2012 12:22PM
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Well, I'm not on Facebook and never will be.  I've got a cell phone and e-mail.  That's enough.  Personally, I couldn't care less what you had for dinner last night, I don't give a damn what your bird looks like and if you have to beg someone to be your friend.......then just put a gun in your effin' mouth.  Just my opinion.  Let the thumbs down begin.
Mar 28, 2012 8:53PM
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You're the 27-year-old CEO of a company heading into a massive and highly anticipated... PARTY!!!Smile

 

To hell with your meetings!!!

Mar 28, 2012 8:22PM
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So what you're saying is he looks bad for not going and he'd look bad if he went.  Mmmmk who cares.
Mar 28, 2012 10:07PM
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He doesn't care about his Facebook users.  Facebook never replies to reports of problems with Facebook and the fact that a majority of the people do not want timeline doesn't phase him.  Once my account is converted I will start emailing the advertisers and tell them their support of Facebook after conversion is why I will boycott their company
Mar 29, 2012 11:42AM
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Get off your butt and go hang out with your friends.  Staring into a computer screen is not my idea of having fun.
Mar 29, 2012 10:54AM
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Isn't Facebook already over?  My 2 teenage kids are already off it just like MySpace before.  And if anyone has ever tried to actually call someone at Facebook to speak with a real human being, you'll also understand how worthless this company is and how worthless the stock will be.  This is a terrible long-term purchase as advertisers will be runniing away in droves!  And then where will the revenue come from? 
Mar 28, 2012 8:54PM
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I guess the world was boring today?

 

Mar 29, 2012 11:27AM
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it will go just like the rest...

 

besides everyone was always complaining about big brother and their privacy...well duh....you just put it all out there for everyone to see....you did it....not big brother....LOL

Mar 28, 2012 8:49PM
Mar 29, 2012 5:40AM
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I don't really care I just wish he'd get rid of Timeline and go back to the other format.  At least until he can come up with something better than Timeline.  'nuff said.  Well and also, screw Wallstreet...
Mar 28, 2012 10:01PM
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So he is going to go public IPO  Guess he will then SELL at  a BIG profit  and walk away Then in 5 years they will be bankrupt As technology changes..
Mar 29, 2012 11:05AM
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A fool and his money are soon parted - but then only a fool puts their life story out for everyone to view.  It is difficult enough trying to keep your life private from the government, employers, and scam artist without providing them all them information they need.
Mar 29, 2012 11:44AM
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has anyone tried to delete a facebook account...well just try!
Mar 29, 2012 11:11AM
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Why in the hell would anyone waste their time on these stupid Social Networking sites, i admit i had a myspace 10 years ago when it came out before it was such a huge f'en deal but that is long since gone. American's, or maybe the world need to realize. No one cares what your doing, i know that posting on a Social networking site and getting comments or pokes or whatever from friends and strangers a like make you feel like you actually have a life, or matter in the world. But you don't. No one gives a crap how many pretend friends you have and in a couple years when you realize you've wasted possibly hundreds of hours of your life keeping up a pretend farm your going to be sorry. Also, you'll probably have a number of the beast type barcode etched into your face.
Mar 29, 2012 4:11AM
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He took his serendipitous **** back to FB HQ to start a timeline no one wants........... 
Mar 29, 2012 2:55AM
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IMO123

 

The device I use is a telephone.

There aren't enough emoticons to express 1/10 of what I can impart in a 5 minute phone call.

Nuff said

Mar 28, 2012 8:43PM
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Zuckerberg stuck it to the analysts. Shout out to Zuckerberg!! I wonder what he was really doing today????

 

Mar 28, 2012 9:14PM
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hey bear paw.. that "little boy" is very rich.. what are you?
Mar 29, 2012 10:07AM
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people are crazy to spend thousands $ to buy facebook. facebook is ticking bomb. just like myspace. facebook is not a company, it's a trend. ask any young people, i am talking about high schooler and middle schooler. they are waiting for some other cool site to show up. and Zuck know this. he will cash in all the money and laughing at your face when the company belly up. haha....

value of facebook is depend on popularity. when all the young kid and young adult move to different site, cool factor is gone. Last time I check old people don’t create trend, trend is created by young kid or college kids. You could put bling-bling and baggy pant on old geezer but it is still old geezer.

 

kid create something wonderful, adult come around and take it and fu(k it up.

 

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