Alibaba Potentially the Biggest IPO Ever: Heitzmann

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March 14 (Bloomberg) -- Rick Heitzmann, co-founder & managing director at FirstMark Capital, discusses the interest of Chinese tech companies in U.S. stock market listings as Alibaba prepares to list in New York on Bloomberg Television’s “Bloomberg Surveillance.”

What is so attractive about the u.s. over hong kong?

All the asian companies are starting to move west, not only their institutional shareholder base but even consumer products.

I was on the board of a company based on the west coast that was acquired by ten cent, and they think this is the beginning of a very profitable and high market cap rarity these are companies with over $100 billion of market cap coming west and really becoming global players.

Are invested in the u.s. more willing to or interested in giving companies with a compelling emerging tech story a pass versus asia where they want to see hard physical assets, physical holdings to back all the valuation up?

It cuts two ways.

They are more than willing to give a past that's some of the numbers of alibaba and ten cent, hundreds of millions of people in a day but things like virtual credit card that came out showing the regulatory issues in china not being the same as here it gives people pause.

Sort of a combination of what is happening in mainland china, the fact that these chinese companies actually want to come to the u.s. they say being able to list on the new york stock exchange is a seal of approval.

Do you trust their accounting, and do they have profits?

Yes and yes.

I think the best companies, tencents, and alibaba -- a® la bobby could be the biggest ipo ever -- alibaba could be the biggest ipo ever.

They want to have the level of transparency you see in a u.s. company because they want to be from both an eagle and value perspective seen as a global leader.

Everybody trumping up the alibaba ipo being the biggest potential in history.

Where could it potentially disappoint?

They have to this -- expand beyond china.

They have such a huge presence in china.

60% of the people on the internet in china use their site every month.

They have to get beyond those.

Is there someone who can buy them out pre-ipo?

Is apple big enough to buy alibaba?

The rumor is it could be a $200 billion company.

They could buy every media company in the u.s. with that kind of market.

I understand their china dominance.

Has they displayed any international abilities?

Some in asia.

I am baffled by the story.

The major question is every year we hear about alibaba.

It never seems to happen.

What has changed to make 2014 the year?

I think they decided to become more transparent and decided to go public.

The numbers are starting to leak and supposedly the leaked numbers are amazing.

Scarlet, get us for the weekend.

We have to look ahead to the stories that will be the dominant themes.

Ukraine, the meeting happening right now between john kerry and sergei lavrov.

Look at the markets move, the russian yield spike.

Ukraine, crimea, russia -- germany front and center.

I thought our interview this week really focus on the relationship between chancellor merkel and mr.

Putin in russia but this is exceptionally fluid friday into saturday.

She is a russian speaker.

There is also a very strong relationship.

Germany accounts with recorders of the foreign direct investment into russia.

That is how tightly involved

This text has been automatically generated. It may not be 100% accurate.


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