McNamee: There Was A Lot Of ‘Self-Dealing’ On Facebook’s Board With The IPO

Facebook’s IPO was “thoroughly mangled” and it’s caused the company’s stock to become bigger issue than it should be, says Facebook investor and venture capitalist Roger McNamee.

Speaking with Bloomberg, McNamee says CEO Mark Zuckerberg was, “was horribly let down by his advisors at Morgan Stanley his advisors at NASDAQ. But also by his board and his management team.”

He clarified that statement to say the management team does an excellent job running Facebook as an operating business. But, because the IPO was so botched people aren’t looking at the business, they’re looking at the stock price.

As for the board, he’s not so kind. He says, “Look at board, and some of those people increased what they sold. There wasn’t enough demand to justify increasing the price, much less raising the number of shares. And yet when they did that, there was self-dealing at the board level with people who had better information, selling a lot more of their stock. Somebody should be looking at all this.”

Here’s the interview. He starts off talking about Yahoo, then shifts to Facebook: