Facebook Sticking With Nasdaq Despite Friction in Relationship

By Oliver VanDervoort July 05, 2012

By now, the failures of the Facebook IPO launch have been well documented. Just how those failures happened seems to also have been settled; though there still remains quite a few questions as to just how the launch was botched as badly as it was. Nasdaq has taken a lot of the heat for the botched launch and top Facebook execs are apparently not too happy with the way their stock has been handled. Despite their anger, it appears that Facebook is going to stick with Nasdaq rather than move over to another stock exchange … for now.

It should be pointed out that it doesn’t appear that Facebook is sticking with Nasdaq because they have some romanticized idea of loyalty. Rather the reason behind them sticking around has more to do with the fact that the company thinks moving their stock to another exchange will only further issue bad signs for the company.

Facebook has had a long history of having a less than friendly relationship with some of their users, as evidenced by the fact that the company has had to take a few steps over the last few months in attempts to show users that they actually value their membership. 

Meanwhile, the relationship between Nasdaq and Facebook continues to go downhill. The Wall Street Journal recently reported that the talk of investors actually suing has only soured the relationship more. There is also talk about the lack of communication Facebook received from Nasdaq and the little control the stock exchange gave to the social networking giant. Among other decisions that Facebook would have liked to have been talked to about, was whether the stock should have been released at all after all the technical glitches.

It appears that the final straw between the two companies was a phone conference that Nasdaq’s chief executives held shortly after the troubled launch. In this particular conference, the executives told members of the press and potential investors that they didn’t believe the stock price would be affected. That colossal miscalculation seems to be a problem that Facebook is having a hard time overlooking.




Edited by Brooke Neuman

Contributing Writer

SHARE THIS ARTICLE
Related Articles

Modern Moms Shaping Influence

By: Maurice Nagle    7/19/2018

Everyone knows Mom knows best. The internet is enabling a new era in sharing, and sparking a more enlightened, communal shopping experience. Mommy blo…

Read More

Why People Don't Update Their Computers

By: Special Guest    7/13/2018

When the WannaCry ransomware attacked companies all over the world in 2017, experts soon realized it was meant to be stopped by regular updating. Even…

Read More

More Intelligence About The New Intelligence

By: Rich Tehrani    7/9/2018

TMC recently announced the launch of three new artificial intelligence events under the banner of The New Intelligence. I recently spoke with TMC's Ex…

Read More

Technology, Innovation, and Compliance: How Businesses Approach the Digital Age

By: Special Guest    6/29/2018

Organizations must align internally to achieve effective innovation. Companies should consider creating cross-functional teams or, at a minimum, incre…

Read More

Contribute Your Brain Power to The New Intelligence

By: Paula Bernier    6/28/2018

The three events that are part of The New Intelligence are all about how businesses and service providers, and their customers, can benefit from artif…

Read More