Media Appearance: Power Lunch (3.4.11)

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Special IPO Edition!

I will be on Power Lunch on CNBC at 1:30 pm debating the IPO market with Herb Greenberg, (whose take is here), and whether firms should or should not go public.

My take is pretty straight forward:

1) Why go public? ‘Cause you need the money!

It is the reason for Wall Street’s existence — bringing capital to entrepreneurs, new firms and fresh ideas. In 2010, 154 IPOs were priced raising $38 billion dollars (144%/76% increases respectively).

2) Is it worth it? Often, there are no alternatives. Look at firms that have done well as public companies — like Chipotle or Google or Tesla — they think its worth it

3) Funding New Ideas: When you have an outside Investors or VC fund your firm, they have an eye towards an exit — that means sale or IPO.

4) Who should not be public? Small companies, sub-$250m market cap and less than $100m in sales (I am on the boards of two of them) should not be public. (Its something I have been agitating for internally).

5) SEC Investigations? PUH-leeze. That is not why Twitter hasn’t gone public yet, and anyone who says otherwise is a jackass.

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UPDATE: Video posted here

Category: Media

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About Wadah Khanfar

As Director General of Al Jazeera, the only international TV network based in the developing world, Wadah Khanfar works to bring rare liberties like information, transparency and dissenting voices. Full bio

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