How Goldman Sachs Snared the Twitter IPO?

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Oct. 4 (Bloomberg) -- Bloomberg deals reporter Cristina Alesci explains Goldman Sachs’ path to leading Twitter’s IPO, how they used the fiasco of Facebook’s IPO to their advantage and why this deal could tip the scales in favor of Goldman Sachs in its rivalry with Morgan Stanley to be top underwriter for technology IPOs. She speaks on Bloomberg Television’s “Bloomberg West.”

This is a classic example of a bank basically taking advantage of a weak point in their rivals history.

In this case, anthony noto is theco-of technology -- the co- head of technology at goldman sachs.

He is a former nfl executive and army ranger as opposed to the head of morgan stanley.

He is a bit of atech freak and lives in silicon valley.

Two very different people.

Noto was able to get in early with twitter and point to the circus that became the facebook ipo and made a comment pitch we have seen investment anchors make since the history of investment banking which is, bring in one bank, keep it quiet, and bring in the other guys later.

Most clients would identify that as a self-serving argument.

Obviously, the guy that's in their first doing most of the work will get the lions share of the fees but in this case, the twitter executives were receptive to that argument.

They bought it because the other banks in this tilted not get the call until september 12 or 13 that they were going to be involved in this.

It is very interesting how twitter handle this completely different than facebook.

If you go to the underwriting table and both of the offering documents, you will see that facebook had 33 banks on that table.

Twitter has seven.

I wonder how badly this will court morgan stanley.

It raises questions about morgan stanley's tech practice.

This is one of the greatest rivalries on wall street.

Many people say they flip back and forth through the number one is but many analysts say this could change the game for goldman sachs and put them way ahead.

If you look at the market share, morgan stanley has a 33% market share and goldman sachs 27%. that dynamic could change and the real question is really around what is coming up which is the ali baba ipo and they are duking it out over that one right now.

I have a vivid image of anthony noto doing the touchdown dance when they got that deal.

That needs to be on youtube.

I will get him on the phone now and demand that.

Thank you very much.

The ipo filing became public and we heard news from facebook.

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


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