Professional Branding Video
From IPO Communications to Crisis Communications In One Day
Buy.com’s website shut down due to a “denial of service” hacker attack which left the site closed to its customers for three hours on its IPO day. Buy.com quickly used their existing media relations from the IPO road show to handle the situation. As a result the CEO was able to speak about the crisis and the IPO on three major media outlets. The stock closed at 99% up for the day.
IPO Website Content
This consultancy helps companies develop content for their IPO websites in order to stay in compliance with financial regulations. The IPO website is an initial source for investors, journalists and other target groups. After the IPO they can also turn the website into an investor relations website.
This video has some good tips on communication strategies when rolling out a new product. These include building relationships and creating relevant content for your audience. Since an IPO is comparable to a new product I would recommend this as a communications strategy.
What's Next After an IPO?
Leading a company into an IPO is a transformative effort filled with intense periods of heat. The journey is filled with challenges that range from media relations to investor communications. However not too many people talk about life after an IPO. The reality is that once a company is public that’s where the real work begins from a StratComm perspective. One example is that companies have to “keep refreshing and retelling their story.” Companies usually have well crafted stories about where they came from and their strategies for growth. But this type of storytelling needs to be maintained, an area in which StratComm can shine.
What it’s Really Worth
Facebook’s IPO was not an immediate success like many analysts and investors expected. This article from the WSJ spins a positive twist on the new public company. Facebook is not your ordinary company; no other major corporation is as deeply connected with the lives of its consumers. Unlike other products such as coca-cola which is usually consumed in private, people might not even know if you like it or not. With Facebook everything is public; it “enhances your identity.” So for individual investors who are invested in Facebook stock and are also on Facebook, they are not only investing in a company but they are also investing in themselves. From a StratComm perspective this is such a powerful statement because its puts places a new value on the stock that is not reflected in the initial valuation of the company.
Great StratComm piece about the Facebook IPO fiasco.
Words of Caution From the Intelligent Investor
Could some Facebook IPO investors have benefited from the advice of Benjamin Graham (the father of value investing)? With its stock price in steep decline and institutional investors receiving insider information prior to the Facebook IPO, this quote just seems fitting.
“Weighing the evidence objectively, the intelligent investor can conclude that IPO does not stand only for “initial public offering,” but accurately, it is also shorthand for:
· It’s Probably Overpriced
· Imaginary Profits Only
· Insiders’ Private Opportunity or
· Idiotic, Preposterous, and Outrageous
Benjamin Graham- The Intelligent Investor
Get Daily Communications About IPOs
Never traded in IPOs? Not to worry the Wall Street Journal has you covered with their daily financial e-letter!!
Nasdaq Formally Acknowledges Technology Failure on Facebook IPO Day
Facebook’s IPO was the most anticipated IPO for past year. The price of the stock was expected to sour to unprecedented levels. Instead it closed at $38.23, only 23 cents over its valuation. Earlier today Robert Greifeld, chief executive of Nasdaq acknowledged design problems with Nasdaq’s trading technology, an issue that caused many large investors to cancel share orders. From a StratComm perspective this announcement is meant to assure investors that Facebook is a sound investment and the low closing price can be attributed to the technical glitches.
