Twitter, Facebook and the IPO Pop

In light ot Twitter’s IPO yesterday, here some really insightful reading materials on both Facebook & Twitter’s IPOs and what they mean for the industry & who’s cashing out behind the scenes:

  • Dan Ariely: “[…] they probably believe in their own definition of a “successful” IPO, which in their terms is one where the stock is priced at $40 and quickly trades up to $50. In the case of Facebook, this process simply redistributes $4 billion from Facebook to the banks and the large fund managers. For Zuckerberg and his team, I have to wonder whether the emotional value of a first day share price “pop” is worth $4 billion […].”

  • Matt Phillips: “[…] Either way, Twitter’s IPO was done on Wall Street’s traditional terms. And for an industry that boasts relentlessly about its ability to act as a disruptive force in American business, it’s hard not to see that as a loss […].”