Facebook’s oft-criticized initial public offering has at least one high-profile backer: InterActiveCorp Chairman Barry Diller, who spoke out in favor of the social network’s $38-per-share launch price on CNBC’s “Squawk Box” Tuesday morning.
Diller said on the morning show, as reported by CNBC, that it made sense for Facebook to price its IPO as high as it possibly could, and investors who bought in at the IPO price were likely speculators, and not in for the long haul, adding:
If you’re going to sell stock, and somebody wants to buy it at a price, and that price is not a price you dictate, but demand dictates, sell it to them now. (The speculators) deserve whatever they get, good or bad.
Diller added that he believes Facebook Co-Founder and CEO Mark Zuckerberg is running the company with its long-term interests in mind, adding that he believes in the strategy, and saying:
What they are doing is insatiably working to make their site better and get more people to use it, and get them to use it more. Secondarily, they are looking to get revenue from it, which is a natural outgrowth of taking care of your customers.
In terms of mobile, he discussed the small page size, saying:
So your ability to put a lot of stuff on the page, advertising opportunities, is more limited, but that forces you to therefore create new ways of getting revenue.
Readers: What do you think of what Diller had to say on CNBC Tuesday morning?