Facebook Watches LinkedIn — And Now What?

The blogosphere and Twitterverse are afire with LinkedIn's stock rally on opening day, and many a pundit suggested today's rally will surely motivate Facebook to follow suit.

The blogosphere and Twitterverse are afire with LinkedIn’s stock rally on opening day, and many a pundit suggested today’s rally will surely motivate Facebook to follow suit.

But that’s not what we’re saying. We believe Facebook would try to clean up some legal messes before registering with the Securities and Exchange Commission.

The moment the rumor mill got whiff of Facebook executives beginning to talk to investment bankers about a possible initial public offering, the attorney representing Tyler and Cameron Winklevoss put out a press release about a Supreme Court showdown.

The Winklevii’s attorney could point to any IPO registration and argue — excruciatingly — that the SEC registration merits another appeal or lawsuit.

Similiar shtick could become part of the argument by Paul Ceglia’s attorney, another piece of work who may insist that that his client deserves half the proceeds of any public offer.

Now, we don’t doubt that Facebook’s current investors may be suggesting that the social network ought not to let pending litigation decide whether the company seeks financing.

It’s just that any IPO becomes more complicated by entitlement claimants such as Ceglia and the Winklevii, and that in turn further draws out the pending lawsuits.

Readers, what do you think Facebook’s executives are planning based on how LinkedIn’s IPO performed today?