How Goldman Benefits From Underwriting Twitter IPO

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Sept. 12 (Bloomberg) -- Bloomberg's Cory Johnson explains how Goldman Sachs benefits from underwriting Twitter's IPO. He speaks with Emily Chang on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

Cory johnson is back with me.

This is a huge win for goldman sachs.

Organ stanley one facebook.

-- morgan stanley won facebook.

He was the chief financial officer of the nfl for a short while.

This is a deal every single banker wants on their resume.

What we saw from facebook is how much the banks had to give up for this.

Morgan stanley gave up a lot of fees.

Facebook was very clever in insisting on not.

-- on that.

Some of that credit turn to blame when the nasdaq had trouble.

Is it relationships?

There are rules in place that says the company cannot do positive research.

There are plenty is of studies that show that lots of strong buys on stocks from investment banks.

Goldman sachs is one of the preeminent financial firms in the world.

They have an norma's market power.

They can place the stock in the hands of people.

One of the think -- one of the things companies that really like -- that is one of the things these investment banks will all walk in the door promising.

I will find you long-term investors.

Stability around your stock and help you raise a lot of money.

Goldman sachs can certainly do that.

Problems came up with groupon's ipo.

Problems came up with facebook's ipo.

What are some of the problems that put up -- could come up with twitter's ipo?

Delays the company makes money.

-- the way the company makes money.

Michael is right.

Business is pretty simple.

The revenues of the advertising should be easily recognizable.

Sometimes companies have long- term commitments.

The contract that twitter has with the customer is really simple.

The contract that twitter has with the advertisers is really simple.

The accounting should be really simple.

Cory johnson, thank you.

I want to bring back our roundtable of guess.

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

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