NEW YORK ( TheStreet) -- On Tuesday, Dallas Mavericks owner Mark Cuban injected sanity into the increasingly absurd Facebook (FB - Get Report) conversation. He referred to New York Times writer Andrew Sorkin's contention that CFO David Ebersman deserves all of the blame for the company's IPO swoon as "just ridiculous."
, Cuban beat back the type of inanity Sorkin feels the need to keep alive:
Facebook was able to raise about 10 BILLION DOLLARS in this IPO. The CFO's job is not to manage shareholder portfolios. His job is to help Facebook succeed. I don't know about you, but putting 10 BILLION DOLLARS in the bank in my opinion is one way to help them succeed.
Cuban blamed individual investors and, where applicable, stockbrokers for Facebook-related losses. He didn't externalize; not even over his own FB losses.
As Cuban explained, Facebook acted in its own self-interest. In the S-1 filings many prospective investors disregarded, Mark Zuckerberg made it perfectly clear. His company manages the user experience, not the stock price. Why would anybody expect Facebook to make an exception during the most important stage of the IPO process?
Despite my contention that
Twitter will live and Facebook will die
, I'm with Cuban. Scroll
my article history
. I have been for months.
Eric Jackson misses the mark in
his response to Cuban's comments
Jackson claims Facebook will have difficulty executing a secondary offering.
That's a premature analysis. Should the company's outlook improve over the next six to 12 months, it will face little trouble fund raising. That said, Facebook likely never intended or will need to go to the street for cash.
Facebook maxed out its IPO. It loaded its coffers. Now, it hunkers down and resumes a hyperfocus on the business. It has no time for shareholder whims. Today, they want an explanation, tomorrow they'll ask for a dividend.
Facebook must act somewhat hostile toward shareholders because, no matter how they explain it, most investors do not understand the DNA of a perpetual startup. Impatient shareholders generally do little more than erode the culture and shorten the life of a perpetual startup.
Jackson calls Zuckerberg, Ebersman and early Facebook investor Peter Thiel "short-sighted."
Again ... read the S-1. Zuck exudes nothing but long-term thinking. Jackson admits as much, but then labels the IPO cash grab a short-term move. Which is it?
As for Peter Thiel, he has been in Facebook since 2004.