One week from now, Facebook was expected to launch their highly anticipated IPO, allowing employees, shareholders and the general public the ability profit off of the dominating social network. Everything seemed to be lined up and ready to go. Facebook even prepared a roadshow to entice investors. Well, that was until an analyst was interviewed on Bloomberg TV, making remarks that caused a very unexpected result: the end of Facebook’s IPO.
Michael Pachter, an analyst for Wedbush Securities and one of the first analysts to give Facebook a “buy” rating, was questioned on why he believed Mark Zuckerberg was a risk for Facebook. His reply caused a stir. “Mark and his signature hoodie: He’s actually showing investors he doesn’t care that much; he’s going to be him; he’s going to do what he’s always done. I think that’s a mark of immaturity.” Shortly after this interview, Mark got wind of it, and he wasn’t happy.
Today, Zuckerberg himself released the following statement.
Michael thinks he’s soooo smart. “I wear a suit so I’m mature”. You know what Michael? I built a f*cking social network in this hoodie that most of the PLANET uses! Facebook has more users than you’ve had minutes alive, which I assume is a hell of a lot since you’re like 120 years old, you old butt munch. What have you done with your life? Trade stocks? In a suit? Sounds dumb. And really uncomfortable. You should wear a hoodie sometime. And take that stick out of your ass while you’re at it. Oh yeah, one more thing. You want immaturity? How’s this. No hoodie, no IPOie. Yep, I’m canceling the IPO. Sucks to be you.
As if this statement and decision wasn’t shocking enough, it is said that Zuckerberg made it irrationally and entirely on his own. He didn’t consult with a board member or fellow executive, similar to when he made the decision to acquire Instagram for $1 billion. This is classic Zuckerberg and clearly justifies Michael’s concerns. We’ll watch as this story continues to develop.