Ahmed Elbatrawy

Senate panel looking at Facebook IPO deal

WASHINGTON (CNNMoney) — The Senate Banking Committee is looking into the controversial launch of Facebook’s initial public offering.

The committee will hold staff briefings with regulators, officials from Facebook, regulators and “other stakeholders,” to find out more about the deal, according to an aide to the Democratic majority on the committee.

Lawmakers on the panel haven’t yet launched a full-on investigation into Facebook, which could include subpoenas and depositions.

Facebook has lost more than 16% of its value since it went public last Friday.

The IPO was one of the most anticipated of all time. It was priced at $38 a share on Thursday by a consortium of 33 underwriters led by Morgan Stanley (MS, Fortune 500) and also including JPMorgan Chase (JPM, Fortune 500) and Goldman Sachs (GS, Fortune 500).

But the launch was flawed. Nasdaq delayed trading, causing confusion among investors.

On Wednesday, three investors sued Facebook, CEO Mark Zuckerberg and the underwriters, accusing them of withholding negative information. A report from Reuters said Morgan Stanley shared a negative assessment of the social network with major clients

Analysts say the company’s stock has promise, considering that Facebook has more than 900 million members. But its future hinged on its ability to glean advertising revenue from its legions of users. To top of page


2 Responses to “Senate panel looking at Facebook IPO deal”
  1. Curt says:

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Ahmed Elbatrawy