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The Facebook Listing and Co-Branding

Thursday, 5 Apr 2012 | 3:20 PM ET
A sign with the 'like' symbol stands in front of the Facebook headquarters in Menlo Park, California.
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A sign with the 'like' symbol stands in front of the Facebook headquarters in Menlo Park, California.

What does a Facebook listing mean materially for the Nasdaq? Probably not much. But it is a psychological victory, and that is important.

But the battle for social media is still a toss-up: the NYSE did get LinkedIn and Yelp and Pandora.

There's a couple things everyone agrees were not huge factors for Facebook (ticker: FB):

1) where they ring the opening bell, and

2) the size of the listing fee (Nasdaq is cheaper)

What does matter are the co-branding opportunities, and it here it gets down to a simple issue: what are you offering in the way of a partnership?

It's not hard to imagine the pitch: the NYSE would certainly have argued that they have broader business-to-business connections with the biggest companies in the world, whom they can partner with to expand the brand name and co-venture with.

I have mentioned before that, as an example, if Groupon (which listed on Nasdaq) was doing something with Starbucks, Groupon might send out 65 million emails that references a deal with Starbucks and Groupon, with the solicitation noting that Groupon is listed on Nasdaq. Nasdaq will pick up a portion of that cost.

Zillow, to take another company (also on Nasdaq), might have been very interested that Nasdaq has an enormous electronic sign in Times Square that is a virtual billboard for a company that wants to attract eyeballs to its website.

Get it? What can you offer us? And just what did Nasdaq offer to Facebook?

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  • A CNBC reporter since 1990, Bob Pisani covers Wall Street from the floor of the New York Stock Exchange.

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