Facebook Looks for More 'Traditional' IPO
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When it comes to the "usual" way of doing things, Facebook isn't a subscriber.
From launching early in the 2000's at Harvard, and then hitting the 800 million user mark, Facebook has had to be creative in order to retain interest and grow.
However, when it comes to its IPO, Facebook and CEO/founder Mark Zuckerberg might opt for the more traditional route, according to early reports from CNBC.
As an example, one institution suggested Facebook turn to its user base for the IPO -- probably one of the more unique ways a company could go public. Facebook rebuffed the idea, however, saying it would be largely inappropriate. Two companies -- Boston Beer (NYSE: SAM) and Vodafone (Nasdaq: VOD) -- tried the strategy before, to highly unfavorable results.
Strategies currently being mulled include private placements, Dutch auctions, or a combination of the two, CNBC noted, citing sources.
Rates charged on the IPO could be slashed as bankers look to simply be on the high-exposure ticket, rather than try to bank on the deal. Though IPO's paid an average of 6 percent to bankers through 2011, that number could drop to 2.2 percent or less for an IPO of around $10 billion.
From launching early in the 2000's at Harvard, and then hitting the 800 million user mark, Facebook has had to be creative in order to retain interest and grow.
However, when it comes to its IPO, Facebook and CEO/founder Mark Zuckerberg might opt for the more traditional route, according to early reports from CNBC.
As an example, one institution suggested Facebook turn to its user base for the IPO -- probably one of the more unique ways a company could go public. Facebook rebuffed the idea, however, saying it would be largely inappropriate. Two companies -- Boston Beer (NYSE: SAM) and Vodafone (Nasdaq: VOD) -- tried the strategy before, to highly unfavorable results.
Strategies currently being mulled include private placements, Dutch auctions, or a combination of the two, CNBC noted, citing sources.
Rates charged on the IPO could be slashed as bankers look to simply be on the high-exposure ticket, rather than try to bank on the deal. Though IPO's paid an average of 6 percent to bankers through 2011, that number could drop to 2.2 percent or less for an IPO of around $10 billion.
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