CFO is named culprit behind Facebook IPO debacle

The New York Times blames low key Facebook chief finance officer David Ebersman, 41, for the financial catastrophe in the social media giant’s initial public offering (IPO). Facebook lost more than $50 billion in market value three months after the IPO due to Eberman, a Brown graduate. “If there is one single individual more responsible than any other for the staggering mispricing of Facebook’s I.P.O., it is Mr. Ebersman. He signed off on the ever-increasing offer price, which ended up at $38 after the company had originally planned a price range of $29 to $34,” an article on the paper said, adding that the CFO was also responsible for belatedly flooding the market with 25% more shares than originally planned. It added that Eberman badly misjudged the demand for Facebook’s IPO since he listened to the wrong advice of bankers and underwriters who were financially rewarded for the high share price. Eberman has his work cut out for him as Facebook tries to regain the trust of shareholders. 

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