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FBN's Charlie Gasparino gives exclusive details on how Wall Street wants to sell the Facebook IPO.
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Now exclusive details on how Wall Street wants to sell this FaceBook IPO Charlie Guthrie has been talking with insiders.
Foreign -- On the plan that leaves average investor out in the cold and race -- some questions about management.
Our Charlie joins us now let's talk about the management first if we can -- Zuckerberg and his team what are the the concerns there well.
It's all listed right here this is a sales document from JPMorgan.
JPMorgan when the three top underwriters of FaceBook the the roadshow begins on Monday they go out that need to religion to go out and -- to investors usually large investors.
This lays out just about everything you ever wanted to know about FaceBook including risk factors will get into an -- but with the FaceBook with -- shows.
That the roadshow begins in New York on Monday.
And in Menlo Park on the seventeenth when the price to deal pretty interest in stuff.
When you look at that did this thing -- look for the risk factors involved.
This risk factors.
Where -- where JPMorgan goes to management discusses this and this is what they're gonna tell investors its two and a half pages of risk -- lots of interest and stuff including Mark Zuckerberg.
They basically site in this document in the -- factor area that Zuckerberg management could quote control over key decisions.
Is a risk factor -- -- they don't elaborate but it's clear that when so much power when JPMorgan and the same here and I'm sure Goldman.
And Morgan Stanley saying the same thing when so much power is sort of placed in one kids.
And I called -- -- he's in his twenties hey what's that -- when he seven.
You know that clearly is a respected that investors need to consider so they are disclosing that in this document.
I mean it's pretty fast -- other stuff is really just think they do talk about the slowing rate of revenues as a risk factor it at FaceBook.
They basically say that.
The -- going to be a slowing growth at a FaceBook in the future FaceBook has been growing widely.
In terms of revenues and profits we do know that there's a profit shortfall this -- profit -- profit growth and revenue growth went down this quarter.
But they say in the future expect a slow down.
Are they will prepared they are prepared to explain why the revenue growth fell off this quarter in other citing -- -- weakness in Europe.
I don't understand what weakness in Europe has to do with -- but that's what they're -- A bomb to basically -- basically basically saying that -- in the future this is a slowing growth company even though it has wild growth.
And outlook some of the other interest in aspects of which -- found interest in.
For me I don't I never thought it was like a -- -- say you're hacker.
But one of the sales things they're gonna say is this culture of FaceBook is never going to change because it's a hacker culture.
And that will stay the use the forward hacker culture -- I'm not I'm done -- -- making -- up the consider it a positive because the hacker culture according to JPMorgan.
Is -- environment that rewards creative problem solving and rapid decision making.
We should point out the bankers are expected to -- dozens upon dozens of questions these are just the samples it's guideposts for their sales force.
There are also let me just get to do more things and industry and -- -- Girls appear prepared to ask I think is going to be key thing for dresses white to pay so much for integrating.
Yeah well that's right that's what you're saying about that it individual CEO -- a bit Zuckerberg had invested a lot of our basic did the deal you don't want to boards and doing this and they're gonna say why did you pay so much -- it.
Their answer is -- -- be this is an important part lead this I don't I'm not that that sort of FaceBook -- Photos and photos share and mobile lapse is apparently important part of FaceBook -- I've looked a lot I'm gonna be Arnold made for the investor -- giving -- some that is I think the real technical take away from eight.
Is if bankers at JPMorgan are calling Zuckerberg or respect -- That's and they're selling -- I'm -- something that investors should.
What is it we just wanted to talk to about where the shares are going to got to -- the article and it's hot New York Times this morning talk about -- the mom and pop might get a shot at this and.
So if you never that -- that article was sort of I think it was intellectually.
You know just just not not a Smart article in this sense.
Every IPO they try to get stuff to individual brands.
It it was in what was made a dubious is that.
This is likely did let's put it -- this ending date left this part out Mark Zuckerberg initially wanted all of it.
Basically oral or most of it to go to individual investors.
Through some sort of Dutch auction not doing the traditional underwriting Wall Street firms buy -- -- to its best comfort customs I can tell you.
That at the major firms they got this thing sold.
It's probably.
Going to be sold you know primarily -- -- percent of it.
Two large institutions and I mean larger than one billion dollar hedge funds there will be a small portion for retail.
That retail will likely be like CEO type of retail I'm the best customers are.
All right now if FaceBook comes in and says -- put -- -- shares aside for you know.
Joseph blow in the -- park in Wichita while made.
But I -- -- always get it through your mutual fund commit to fund manager -- -- well that's I think that's that's -- -- that -- -- honor at salaam but it is a trophy piece of me and I you know.
It's great reporting as I think I stayed up late for this.
More -- -- -- later on thanks -- had to -- again for the I note -- well absolutely have no I don't know actually I actually ideal in Morgan mr.
Goodall later this so we'll watch the show I do all never miss it don't work out.
Up and -- already troubled management 200.
A a faster thank -- Sachs stop now stop and grab mr.
Cavuto.
Bob -- -- senior Cavuto later in the show.
