Nasdaq Is Still on Hook as SEC Backs Payout for Facebook IPO
Facebook is always find a way to make the news one way or another. Either dealing with issues of privacy, changing their layout or buying out apps. Their initial public offering from May of 2012 was one of their biggest news of their company, with so much hype and speculations, many had hope Facebook would perform extremely well but that was not the case.
According to the article, the banks of wall street have lost an estimate of $500 million just because of the delays of their I.P.O., one of the biggest losers was UBS, they claimed they lost roughly $356 million. With Facebook being such a big disappointment to most companies, Nasdaq has proposed a plan to pay back the losses suffered from Facebook. Nasdaq will value their payment for Facebook at the price of $42.
I am sure a lot of companies are happy about this proposal, but their proposal might not be enough to cover everything that was lost. Some companies might have done something else with the money lost and some may even have saved it for something else. Hopefully this payment plan will help all the companies that has lost a significant amount of cash due to Facebook IPO.