Mark Cuban Gets Facebook; Most Others Don't
At his blog, Cuban beat back the type of inanity Sorkin feels the need to keep alive:
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.
Cuban blamed individual investors and, where applicable, stockbrokers for Facebook-related losses. He didn't externalize; not even over his own FB losses.
As Cuban explained, Facebook acted in its own self-interest. In the S-1 filings many prospective investors disregarded, Mark Zuckerberg made it perfectly clear. His company manages the user experience, not the stock price. Why would anybody expect Facebook to make an exception during the most important stage of the IPO process?
Like Sorkin, TheStreet's Eric Jackson misses the mark in his response to Cuban's comments.
Jackson claims Facebook will have difficulty executing a secondary offering.
That's a premature analysis. Should the company's outlook improve over the next six to 12 months, it will face little trouble fund raising. That said, Facebook likely never intended or will need to go to the street for cash.
Facebook maxed out its IPO. It loaded its coffers. Now, it hunkers down and resumes a hyperfocus on the business. It has no time for shareholder whims. Today, they want an explanation, tomorrow they'll ask for a dividend.