Facebook May Hire Robert Gibbs, Former Obama Aide [Facebook largest IPO in history, Goldman Sachs]

NYT ^ | March 27, 2011 | ANDREW ROSS SORKIN

[fight_truth_decay]

Facebook is in talks to hire Robert Gibbs, President Obama’s former White House press secretary, for a senior role in helping to manage the company’s communications, people briefed on the negotiations said.

Facebook is seeking out Mr. Gibbs ahead of an initial public offering planned for early 2012, these people said.

[fight_truth_decay]

Gibbs could receive cash salary as well as shares ahead of the initial offering [IPO].

Facebook has set the clock for its IPO to occur on May 2012 or earlier.

Facebook intends to raise another $1.5 billion through a “special purpose vehicle” that Goldman Sachs will be setting up to allow some of its clients to indirectly invest in Facebook.

Aware the SEC will not be happy with their arrangement, and will likely step in and tell Facebook to disclose its earnings to the public due to the existence of the Goldman Sachs vehicle.

Why would Facebook go through all this trouble if they thought the SEC is going to shoot them down?

The answer is that this move buys Facebook more time to grow and prepare itself for an IPO. The SEC regulation wouldn’t take effect until May 2012 because the SEC only requires private companies to start reporting its financial information within four months after the end of its current fiscal year. So if Facebook violates the 500 shareholder rule this year, then it won’t have to start reporting its earnings until May 2012, 120 days after December 31, 2011.

Buys Facebook time to prepare for its IPO. When the day comes that Facebook is required to release its financial information to the public, it will probably decide to just go all-in and become a public company, raising even more money in the process.

Source

[unixfox]

And I thought the kids at Facebook were smart.

Silly me.

[perfect_rovian_storm]

You’ve got to be kidding. I wouldn’t hire Robert Gibbs to mop my floor. Haven’t they SEEN his performance as press secretary?

[texmexis best]

The White House now owns Facebook. Prepare to exit.....

[Colonel_Flagg]

There was a thread here yesterday about whether Freepers should quit Facebook. This sort of news would make me strongly consider doing it.

[stbdside]

Heck, I wouldn’t hire Robert Gibbs to be a spell checker at an M&M factory.

[luvie]

EGAD! That is a scary thought! Does Facebook have a death wish??

[maddog55]

I’ve got a FB account to keep up with the kids & grand kids but if they hire this POS then I’ll drop it altogether.

[fight_truth_decay]

I tried to find if the story was posted as a day old, but could not..so you answered that question in a very kindly way..

Thanks

ftd

[fight_truth_decay]

if you are not considering Gibbs...I am available !!! I get to eat the rejects??

[LibFreeUSA]

Anyone care to guess what happens to Palin’s Facebook privacy information now??