LinkedIn Was Scammed By It Investment Bankers, Says New York Times Columnist
- Created: Sunday, 22 May 2011 22:27
"LinkedIn is still a fragile enterprise," says New York Times columnist Joe Nocera. "Its executives may yet rue the day they let themselves be sold down the river by their investment bankers."
Nocera points out that the fact that LinkedIn's stock doubled in price on its first day of trading indicates that its investment bankers used its IPO to let their favorite clients cash in on the underpricing of the stock, which means the profits they made by flipping their stock went to them instead of LinkedIn's coffers.
"LinkedIn is supposed to be the client, but it was treated like the mark," says Nocera.