This transcript is automatically generated
Thanks so my -- -- So fine Facebook's IPO debacle business problems and deteriorating stock price which hit a new low today by the way.
CLO Sheryl -- recently met with the ultimate Wall Street insider for advice on how to repair the social media giant's image.
With the financial community Charlie Gasparino has -- home.
And in the east feel good stories 'cause I feel particularly good about the store because the other because FaceBook trying to -- -- -- story about.
Sheryl Sandburg reaching out to institutional investors and institute and at least one given her an earful they actually denied it to other news organizations news organizations.
Here's what we know we have completely stuck verified.
By every which way you can verify this.
-- post IPO with a gentleman named Larry Fink.
The one of the but the ultimate insiders on Wall Street he runs a company called BlackRock.
The biggest institutional investor in the world BlackRock is probably the number six -- -- the largest shareholder in FaceBook.
And what they talk about well from what I understand -- took the meeting would -- at the request of a mutual friend.
Kind of had a fair that was that is is Matthew thirteen he's ahead but alternative investments I believe this is -- -- I'm sure that's what if I'm guessing I know that -- less credible -- US and -- and act.
I -- okay probably true -- -- that's as I don't know what that that that's just state I area I at a gas that's and I think that's a good educated guess and the fact that they are being cold there.
And that the Larry Fink is a guy you don't turn to Larry -- for advice on like you know how they can transform their mobile applications into advertising dollars.
You go to Larry -- because you have a problem.
Which -- image on Wall Street which with major investors including BlackRock.
And you want you want -- vice have a clear that up and and I understand.
That's exactly what happened at this mean for wanted to -- they did talk.
About that disasters IPO and the pricing of -- look at it look at that is today the IPO I guess right off the bat hit a high of about 45.
It is not 45 now it is nowhere while -- at 45 my prediction is always been this is a twelve to fifteen -- stock.
We'll see if it hits that and by the way we have more downward momentum to go because the -- -- -- -- -- and and this is some of the stuff she spoke with Larry -- about to essentially.
How to handle the image on Wall Street when you have a business.
That is under incredible doubt I mean one of the interest things about Twitter.
Vs FaceBook Twitter for -- -- understand is is trying to figure out exactly its business model before it goes public.
And from what I understand it's you know sometime in.
2013 when they're gonna do this if they do and it could be longer put that back guy what's his name Dorsey Jimmy Dorsey taken this time a little bit not rushing into it.
-- FaceBook didn't do that and now the -- off guard.
They don't really have a firm business -- -- that they've sold to investors.
They have slowing growth on a lot of different areas of the tearing stock price.
And that's why Sheryl Sandburg met with Larry -- -- despite the fact that they denied it now I will tell you this.
Depending on their denial you can get a lot of trouble from the SEC on this I don't think you can just purely -- stories that turn out to be true.
It gives investors the wrong impression about the company.
And depending on the type the stories and what type of statements they put out I'll have to Parse to the the sort of the language they -- -- of of a lobbying firm and it's it's -- -- to see FaceBook this sort of branch you know.
You'll take no prisoners alternative firm goes out hires New Brunswick group through -- To -- a lobbyist within -- PR guy in particular.
That that that handled the account was the former a former White House George Bush Chris Cox PR guy so to just you -- how times have changed over there.
But that's what they do now they clearly met when Larry -- I don't know if the met with anybody else I assume they did I I don't know that.
But you know you meet with Larry -- Larry -- is the king of Wall Street yeah I mean he's the man I mean between Jamie Larry -- -- no no to bigger bigger fishes in the in the Wall Street -- We should point out that Larry -- is one of the few Wall Street supporters of President Obama.
-- to point out that he's always -- is yet is him in bubble who's not in this -- affiliate would have from right now.
A Larry -- -- if that you know kind of claim both ends against the middle for awhile like right now and basically said he's he's -- -- president's reelection.
I don't know much when he gave this time he's always been a supporter of the -- who we should point out that he's a guy and -- people talk about being.
-- potentially sec Treasury Secretary and when Geithner as you know Geithner says he's gonna step down but you know if you gonna turn to.
-- and I think didn't -- -- if you if you got a kiss somebody's -- let me just remember at this point you're gonna -- think that what type device you.
This is what I heard I heard this from someone who apparently has firsthand knowledge of it of the comes Asian IPO so far black truck is not commenting.
FaceBook is not commenting yet we're gonna have to probably try to deny this one -- well the good luck guys.
My view is from -- I understand he asked her about the IPO why do they price -- so high.
What were they trying to get up from -- -- yes -- each one of her excuses was we want that we didn't want people to flip out of the stock for quick a quick and dirty.
Quick and dirty paid eight which I think is completely stupid if that's why one of the reason -- price -- stock like this.
Obviously in other reasons what they wanted to squeeze as much juice out of this lemon as impact.
-- possibly could.
And you know he also asked her about why she had a problem with.
You know Wall Street hedge fund traders to flip -- some of those are average people that do that.
-- shift from -- that -- from what people like Peter Steele.
-- of the founding members and clearly he put his money where his mouth is but he's gonna flip out in the you know he's gonna sell a stake or you're already sold the stake.
You know those lock -- periods for and for investors the insiders hold.
-- are very are narrow here the more now on the shorter than they are traditionally on IPOs so he sold out of his.
So yes why what's the difference between flippers and those guys selling out -- near the same sort of difference.
They're getting out making a bundled solution -- should make a little.
And is the end when you price of the deal that -- no matter what you screw the average investor here try -- -- sniffing -- the story thanks some.