Photo: Facebook Roadshow
Are investors dying to own Facebook stock?Depends on who you ask!
CNBC reports that the IPO is “‘many many’ times oversubscribed.” Bloomberg had previously said demand was “weak.”
And Michael Arrington, founder of TechCrunch, now a VC, and a generally plugged-in guy, says, “My sources say that the road show is a bit slow and investors don’t like some of what they’re seeing. In particular, the massive move users seem to be making to mobile.”
So what’s happening here? Well, as Arrington explains, Team Facebook is telling CNBC everything is going better than expected. Bloomberg’s sources are probably IPO buyers, and they want to drive the price down.
As for Arrington, he’s not really on a team, we don’t think. So, we’ll take his word for what’s really happening.
Regardless of all these IPO machinations, we fully expect Facebook to price at the high end of the range on “strong demand.” This is the way the IPO game is played.