In the rush of Facebook IPO news, many media outlets noted that the initial prospectus did not mention where the stock will be traded.
That decision may not be made for a while, and Facebook will no doubt hear some pretty amazing pitches from NYSE Euronext and Nasdaq OMX. Heck, it might even hear a token pitch from BATS, which is getting into the listing game and can boast that it now lists eight iShares ETFs. Facebook looms as a great prize for any exchange.
For the NYSE Euronext, this represents a chance to recover from the disastrous attempt to merge with Deutsche Bourse and an opportunity to continue its recent momentum in winning tech companies. It recently won the right to list Pandora and LinkedIn. Nasdaq OMX is out to defend its turf as the exchange of choice for tech companies and it has long fought off attempts by the NYSE to steal away the likes of Microsoft and Intel. The exchange battle will likely come down to what services the exchanges are willing to offer.
One expert tells Bloomberg that, “It usually comes down to who’s willing to put the most promotional money out,” William Hambrecht said in a phone interview.
“You pay for advertising and that type of thing. There’s always a lot of advertising around the offering and listing and that’s about the only way they compete from a cash point of view. They both do it.”
It’s a hard call. But one has to consider the influence of COO Sheryl Sandberg, a former top executive at Google. She might have been influential in the decision to tap Morgan Stanley as the top underwriter--the role it played in the Google IPO. And Google landed on the Nasdaq.
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Related article:
Facebook to choose exchange
