Usually, before a company goes public, its top executives travel around the country and sell the deal to big institutional investors. This is called the road show. Facebook is going to IPO in about a month, and its road show is about to start.
In a surprise to some traditionalists, Facebook CEO Mark Zuckerberg might skip the whole thing.
Fox Business’s Charlie Gasparino reports that the company is being “bombarded” with requests for Zuckerberg to appear on the roadshow, but, despite being “prodded” by bankers, Zuckerberg has not made up his mind.
Here’s the truth, according to a source involved in the business of taking copmanies public: It doesn’t matter.
In most scenarios, says this source, you would say absolutely the CEO has to go on the roadshow if he’s going to be the CEO. But Facebook is different for three reasons.
- The demand for Facebook shares is plenty strong all on its own.
- Zuckerberg is not likely to have much contact with big investors in the future. It’s a good thing that he’s setting a clear precedent now.
- He has excellent proxies in CFO David Ebersman and COO Sheryl Sandberg, who will definitely go on the road.