Mark Cuban told investors dont blame Facebook ‘s IPO value but blame yourself because you paid for it. Its only be 4 months and Facebook’s IPO has dropped more than half its value in that short time
Billionaire investor Mark Cuban blasted the notion that Facebook’s FB +2.64% CFO David Ebersman deserves the blame for the disastrous aftermath following the social network’s IPO.
The well-trodden argument – put forth by Andrew Ross Sorkin at The New York Times – notes Ebersman signed off on raising the offer price and flooding the market with more shares than previously planned. That ultimately proved to be a hindrance when the stock tanked after the IPO, and Ebersman “has done little to articulate how or why the company’s strategy will lift the stock price any time soon,” Sorkin says.
Cuban disagrees. He says Facebook handled the IPO correctly, and placing the blame on Ebersman is “180 degrees wrong.” From Cuban:
Have you ever been to an auction where the selling party told a buyer to reduce their price because they were worried that the item might not hold its value ? Neither have I. If the CFO of Facebook came on SharkTank and told me that he was able to sell his shares to the public for $38 a share, but turned down the opportunity, I would crush him for being an idiot.
Facebook was able to raise about 10 BILLION DOLLARS in this IPO. The CFO’s job is not to manage shareholder portfolios. His job is to help Facebook succeed. I don’t know about you, but putting 10 BILLION DOLLARS in the bank in my opinion is one way to help them succeed.