May 24, 2012

It’s not so much the banks taking the beating as the social network. Ronn Torossian, the chief executive of 5WPR, said in an email to Portfolio.com that the company’s IPO disaster could have a long-term impact on its business.

“From minute one of a delayed launch with Nasdaq’s technical problems to the lawsuits swirling around, Facebook is entering a danger zone,” Torossian said.

Facebook, more than, say, a manufacturing company, is dependent upon the goodwill of the public to build its business, since what it’s selling the public is a positive experience on its service, Torossian argued. And so far, it’s failing the crucial public relations test, he said. If Zuckerberg and his team think they can go heads down and hack their way out of the PR crisis, they’ve got another thing coming.

“Mark Zuckerberg-buy a suit!” Torossian said. “This is the big leagues, and your hoodies don’t work when you are talking about billions of dollars. Wall Street demands respect, and while individual style may be less formal, a hoodie is simply too much. Grow up, Mark! Clear, transparent communication is needed-and Facebook needs to positively communicate any good things.”

The full article may be read at: http://www.portfolio.com/views/blogs/daily-brief/2012/05/24/facebook-ipo-fallout-includes-pr-fail#ixzz1w1OJFAbT