By now, the failures of the Facebook (News - Alert) 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.