Trading desks at Goldman Sachs Group Inc. and J.P. Morgan Chase & Co., two of the firms that helped Morgan Stanley underwrite the IPO, were among those lending out Facebook shares that hedge funds needed for short sales, according to people familiar with the matter.

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It was a bad time for Facebook’s IPO to go south.

Retail investors are not happy. Class-action lawsuits have been filed against Nasdaq, Facebook and the three Wall Street investment banks that took it public. The Securities and Exchange Commission, Financial Industry Regulatory Authority and the Massachusetts Secretary of State are all “looking into” just exactly how the deal went down.

So, will that be enough to sate a scorned investment public at large, especially amid a current political climate of public skepticism — if not outright contempt — for Wall Street as a whole?

Not at all, especially because it is an election year.

Therefore, cue the tsk-tsking politicians lining up Wall Street’s powerbrokers, as well as a Facebook exec, for a session of pompous I-told-you-sos.

It’s clear the big guns on Capitol Hill are gearing up to intervene. The Senate Banking Committee is in the process of meeting with Facebook, regulators and other stakeholders in the IPO, according to a statement issued by its chairman, Sen. Tim Johnson, on Wednesday.

“Once these briefings have concluded and the staff reports back to me,” Johnson said, “I will determine if a Senate Banking committee hearing is necessary.”

Maybe not necessary, but those hearings do seem inevitably inevitable.

Sen. Sherrod Brown, chairman of the Senate Banking subcommittee, chimed in as well. “There’s a lot that we don’t know about this IPO, but a lot that we do,” Brown said in a statement released on Wednesday. “Effective capital markets require transparency and accountability, not one set of rules for insiders and another for the rest of us.”

And while the House Financial Services committee didn’t as yet return my Wednesday afternoon calls, HFS spokeswoman Marisol Garibay told Reuters that it is also being briefed on the issues, and is in the midst of “gathering information and facts.”

After the most hotly anticipated IPO of the year was mired by technological and potential ethical issues, leaving thousands of retail investors holding the proverbial bag, it’s natural that Congress would consider intervening. Allegations against Facebook and its underwriters surfaced earlier this week, claiming a Facebook executive explicitly told at least one member of its syndicate that the firms should lower their financial forecasts for Facebook at the eleventh hour, mere days before the highly anticipated IPO.

This apparently resulted in institutional investors dialing back the price at which these firms would buy Facebook stock, and that could have dampened demand for shares on the first day of trading, affecting retail investors’ chances at any potential first day gains.

Some have taken steps to ease the investor backlash. Morgan Stanley may adjust prices of orders made by its retail investor clients, according to a report from The Wall Street Journal. Nasdaq, too, may earmark around $13 million in order to resolve bad trades.

But there is nothing like a good old-fashioned grilling of money makers and Internet zillionaires for the cameras of C-SPAN to make the summertime barbeque complete.

Eat it up, folks.

The suit follows reports that analysts at Morgan Stanley and Goldman Sachs Group Inc. cut their revenue forecasts on Facebook amid the investor roadshow, a change that wasn’t widely disseminated.

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Today, AnchorFree announced that Goldman Sachs has made a $52 million Series C investment. Prior investors include RENN Capital. The investment brings its total capital raised to $63 million.

AnchorFree makes Hotspot Shield, a simple VPN tool that’s in use by some 60 million people around the world. It’s the creation of David Gorodyansky and Eugene Malobrodsky, who started the company in 2005 just after finishing college.

During the Tahrir Square uprising in Egypt, the company recorded more than a million downloads of the product in a single night. It’s now in use in 190 countries. The point of the capital raise is simple: Push the number of users higher still. There are, after all, some 1.6 billion people using the Internet.

Aneel Bhusri

Sources familiar with the company’s plans tell AllThingsD that Workday has chosen the four bankers that will lead it through the IPO process: Morgan Stanley, Goldman Sachs, Allen & Company and JPMorgan Chase & Co. The search for bankers caps a process begun in December.

The company’s IPO path calls for an S-1 filing to be made with the Securities and Exchange Commission by mid-July. After a late summer or early fall road show, its shares would debut between October and December, depending on how favorable market conditions are, sources familiar with the matter tell me.

The process began in earnest after Workday hired its new CFO, Mark Peek, away from VMware, where he was also CFO.

Workday is feeling emboldened in part by the successful offerings of Jive Software and Splunk, both enterprise companies with their hands in the cloud business. Workday itself is a pure cloud software play, specializing in human resources applications, a white-hot area of enterprise that has seen a lot of M&A activity of late.

In December, software concern SAP spent $3.4 billion to acquire SuccessFactors. Then, in February, software giant Oracle spent $1.9 billion to acquire Taleo, in a deal that took place shortly after I interviewed Taleo’s CEO. Even Salesforce got into the act, acquiring the start-up Rypple for an undisclosed amount in December.

Much of that dealmaking came in response to concerns about Workday, especially after its impressive $85 million Series F round of institutional funding at a $2 billion valuation, which AllThingsD reported exclusively in October. A Bloomberg News report said that round was oversubscribed and grew to $100 million when Michael Dell’s MSD Ventures joined.

Investors in that round included several who also took part in institutional rounds in Facebook and Web gaming player Zynga: T. Rowe Price, Morgan Stanley Investment Management, Janus, and Bezos Expeditions, the personal investment entity of Amazon CEO and founder Jeff Bezos. William Danoff, the manager of Fidelity’s $80 billion Contrafund, the mutual fund giant’s largest stock-based fund, also participated in that round.

A Workday IPO, which would raise about $500 million, would make for a sweet payday for the company’s earlier investors, which include Dave Duffield and Greylock Partners, who invested $90 million in four rounds, and New Enterprise Associates, which joined a $75 million Series E round in 2009. By my math, Workday’s total capital raised comes to a cool $195 million.

So how’s business? With the company having disclosed $160 million in billings total bookings in 2010, sources familiar with its operations tell me bookings in 2011 exceeded 100 percent growth. That would be above the $320 million in 2011 bookings CEO Aneel Bhusri told me he expected last October.

Workday is essentially the creation of PeopleSoft vets Bhusri and Duffield. They started the company in 2005, not long after losing a pitched battle to resist a $10 billion hostile takeover by Oracle. Bhusri and Duffield concluded that the next battlefield for enterprise software would be in the cloud. They kickstarted Workday using their own money and some funding from Greylock, and brought some PeopleSoft employees with them.

The idea was to re-create PeopleSoft, which makes software that businesses need to run day to day, but to deliver it from the cloud.

And unlike other cloud players that approach smaller companies and work their way up to ever-larger customers, Workday’s customers are already in the big leagues. The average Workday customer — there are 280 — has between 10,000 and 15,000 employees. The biggest is Flextronics, the huge electronics manufacturing company, which has 200,000 employees. Other customers include Time Warner, Thomson Reuters, Chiquita Brands and Salesforce.com. There are Workday records on more than two million employees on its system. All that after only four-plus years of active selling. A second, newer line of financial applications aimed at helping companies more efficiently manage their spending is getting traction, too.

Workday will probably be the biggest among a pending batch of enterprise-oriented IPOs set for summer and fall after the Facebook madness is over. For one, there’s Violin Memory, which I’ve been reporting on quite a bit. And Reuters is reporting that cloud storage and collaboration concern Box is looking like it’s eyeing an IPO in 2013. The bankers are going to be busy.

Code Advisors is getting a $25 million investment from financial services giant JPMorgan Chase for a minority stake in the Silicon Valley-based boutique investment bank and advisory firm.

The influx of cash will allow Code to grow quicker, said Quincy Smith, one of the firm’s founders, which also include Michael Marquez and Fred Davis.

The non-exclusive deal, the two firms said, is the natural extension of a longer-term relationship that has been developing for a while.

“To the extent that the money means we are getting even closer together, that’s great,” said Smith in an interview earlier today. “This solidifies a partnership that has existed for some time.”

Plus, it presumably also gives each what the other cannot offer clients. Usually a big bank might try to kill or buy a firm like Code, so this move is unique.

“We are growing our business and getting access to next-generation entrepreneurs that Code knows well,” added Kurt Simon, co-head of Technology, Media and Telecom Banking at J.P. Morgan. “And it’s a sign of continued investment in our important West Coast businesses.”

Indeed, J.P. Morgan has been competing with Goldman Sachs and Morgan Stanley for a higher profile in Silicon Valley. It recently was selected with the pair as one of the lead bankers in the upcoming Facebook IPO. It has also worked recently with LinkedIn, Skype and Pandora.

Code has taken on smaller deals with a range of hot start-ups and entrepreneurs, which was one of the attractions for J.P. Morgan. That includes representing Spotify and LivingSocial, and making investments in Path and Flipboard.

“For J.P. Morgan, it’s like making an limited partner investment in another venture firm,” said Smith. “And for us, we can offer a lot more services to our clients as they grow.”

As part of the deal, Jes Staley, CEO of J.P. Morgan’s investment bank and a member of the firm’s operating committee, will become a non-voting observer on Code’s board.

Here’s the full press release on the deal:

CODE ADVISORS ANNOUNCES A $25 MILLION INVESTMENT FROM JPMORGAN CHASE

San Francisco May 3, 2012 — Code Advisors announced today that JPMorgan Chase (NYSE: JPM) has agreed to make a $25 million minority investment. Jes Staley, CEO of J.P. Morgan’s Investment Bank and a member of the firm’s Operating Committee, will also act as a non-voting observer at Code’s Advisory and Investor Board meetings.

“We are thrilled that JPMorgan Chase has decided to invest in Code Advisors,” said co-founder Quincy Smith. “This transaction demonstrates how together we might energetically adjust to serve the new needs of entrepreneurs and companies. The chance to work more closely with Jes and his team gives us awesome global and experienced perspective.”

J.P. Morgan’s investment and relationship will allow Code to accelerate its growth opportunities and allow each team to offer complementary services to their respective and shared clients.

“Identifying and supporting great ideas early in their development is particularly important in the technology space,” said Staley. “Code continues to uniquely identify next generation companies, and together we are excited to help those entrepreneurs grow and expand their businesses.”

According to Shope, recent investor concerns that have weighed on Apple shares — soft Mac sales, the prospect of an iPhone subsidy revolt among carriers — are overblown and will be proven wrong when the company reports earnings next week.

“We expect solid March quarter upside, which is likely to trigger healthy increases in iPhone, iPad and overall earnings expectations for the full year,” Shope wrote. “In addition, we believe recent investor concerns over a ‘catalyst-light’ June quarter are misguided, since this will be the first full quarter with a refreshed iPad, a lower-priced iPad 2, and a fully ramped iPhone distribution channel; in other words, the June quarter is when many of the recent catalysts begin to fully manifest into earnings power.”

And with that, he raised estimates for Apple’s second quarter to $36.9 billion and $10.18 per share, ahead of current consensus, which is about $36.67 billion and $9.98.

The bill makes it easier for some elite companies to stay private, but it also makes it easier for companies to go public by reducing regulatory burdens associated with U.S. IPOs. I spent some time this week asking venture capitalists, secondary market organizers and CEOs how they think it will affect their business.

First of all, the bill says companies with less than $1 billion in revenue — called “emerging growth companies” — don’t have to make Sarbanes-Oxley audited financial reports for up to five years, don’t have to make Dodd-Frank compensation disclosures, can meet with investors before filing to test the waters, and have other rules relaxed.

Here are some relatively readable summaries of the Jobs Act from law firms Perkins Coie and Latham Watkins, and investment bank Goldman Sachs.

There are a slew of rule changes, but the consensus from everyone I talked to is that the JOBS Act is more a reducer of friction than a significant change to the incentives around going public.

The JOBS Act is “more of a perception gain,” said Benchmark Capital partner Bill Gurley, speaking on a panel on IPOs organized by Wealthfront at the Rosewood Sand Hill last night. “It’s marginal, it’s not a revolution.”

Still, the IPO costs today are pretty major, and anything that reduces them could be good for would-be public companies. If it costs $3 million to $5 million today for a company with $80 million in revenue and 10 percent operating margins to go public, “that’s half of your profit right there,” Gurley said.

Multiple speakers at the event griped about the cost of Sarbanes-Oxley as well as the industry of consultants and advisers that has arisen around it. They praised the JOBS Act’s move to give young companies more time to comply so they can push back on the “bullshit overhead” surrounding compliance, as Aruba Networks CEO Dominic Orr put it bluntly.

Some companies anticipate a more dramatic and material effect. Speaking from Washington, D.C., where he’d flown in for the JOBS Act signing, Rally Software CEO Tim Miller told me, “If [the JOBS Act] had passed a year ago we’d probably be a public company today. Right now, it’s so expensive to go public as a small-to-midcap company that it would have taken all our potential profits and then some — and sharing that information publicly would have been a competitive threat to our business.”

On the other hand, another part of the JOBS Act makes it easier for some private companies to stay private. It raises the shareholder limit before companies are required to make public disclosures to 2,000 from 500. And that 2,000 doesn’t include employees.

The consensus I heard is that the infamous 500-shareholder limit has gotten a lot of publicity for the way it affected Google and Facebook, but the reality is that it doesn’t impact very many companies.

Still, raising the limit could, for example, take pressure off Twitter.

A byproduct of the 500-shareholder limit has been the use of restricted stock units, rather than regular stock options, by companies like Facebook, Zynga and Twitter so they can keep hiring without passing the mark. RSUs have become common enough that the SEC released general guidelines for them earlier this year.

RSUs are non-transferable and have no strike price — they’re activated only when a company is sold or goes public. So it’s possible that, post-JOBS Act, companies will go back to providing a more traditional equity upside with stock options.

But some VCs pointed out that the other benefit of RSUs is that they help companies avoid reporting “409A valuations,” which are the tax code’s requirement for a publicly disclosed fair market valuation associated with stock option grants. Private companies like to avoid telling people how much they’re worth.

The coincidence of the JOBS Act and the impending Facebook IPO seems to be prompting the industry to consider the state of secondary markets for private company stock — and perhaps turning away from them.

One of the secondary trading leaders, SecondMarket, last week laid off 10 percent of its staff, while referencing the Facebook IPO.

SecondMarket SVP Jeff Thomas told me this week he thought the major impact of the JOBS Act will be a movement away from RSUs as companies revisit their compensation incentives for employees. Of course, that would be in his interest — because RSUs are non-transferable, they can’t be traded on secondary markets.

Even if going public gets a little bit easier, public markets still come with the problems of “casino investors and quarterly reporting demands” that companies would rather avoid, Thomas argued.

But Gurley and other VCs were dismissive of organized secondary markets. They prefer that their private companies figure out more controlled ways to manage late-stage liquidity for early investors and employees.

Sequoia Capital tells its portfolio companies to include a “right of first refusal” in all their stock options so they can buy them back instead of allowing outside transactions, said long-time partner Doug Leone at the Wealthfront event last night. “Within Sequoia companies, that door is getting shut,” he said.

Wall Street has been asking the company some version of this question for years, and now investors may get some kind of answer. Apple has announced a conference call to discuss its cash position — and only its cash position — tomorrow morning, at 9 am ET.

Here’s the entirety of the release:

“Tim Cook, Apple’s CEO, and Peter Oppenheimer, Apple’s CFO, will host a conference call to announce the outcome of the Company’s discussions concerning its cash balance. Apple® will not be providing an update on the current quarter nor will any topics be discussed other than cash.”

Apple has been hinting for a while that some kind of announcement has been coming. Cook made two public appearances this year — during the company’s earnings call and at a Goldman Sachs-hosted investor conference — and both times he said Apple was debating what to do with its stockpile.

Here’s John Paczkowski’s summary of Cook’s comments at the Goldman event, where Cook spent a lot of time talking about cash:

“We’re in very active discussions at the board level on what we should do,” he said, adding that careful consideration is the guiding principle here. “We are not going to run out and have a toga party.”

“We are judicious in our spending,” Cook said. “We are deliberate. We spend our money like it is our last penny. … I think shareholders want us to do that. They don’t want us to act like we are rich.”

“I’d be the first to admit we have more cash than we need to run the daily business. So we’re actively discussing it. I only ask for a bit of patience, so we can do it in a way that’s best for the shareholders.”

MarketWatch reports that McCarthy then gave the example of someone watching a PayPal-paying customer enter private data into a payment terminal to complete a transaction — essentially exposing the data.

PayPal’s response? With PayPal, the company said as part of a lengthy statement, your financial information can’t be lost or stolen from your wallet, your card or on your phone — and it’s safer in PayPal’s cloud than in your pocket.

“PayPal is leading payments innovation for frustrated merchants and consumers limited by legacy systems and approaches. In the same way that PayPal drove innovation online over a decade ago by making shopping easier, we are listening and responding today to what merchants and consumers are crying out for — point-of-sale payments innovation that offers value, convenience and security anytime, anywhere,” the statement read.

The eBay-owned company went on to say that it processed almost $120 billion last year in global online payments volume, with the lowest loss rate in the online payments industry, and reiterated that it believes it can scale its services to meet the potential growth in transactions that would occur offline, too.

Visa’s assertions pertained specifically to PayPal’s new in-store payments system, through which PayPal customers can enter their PayPal payment info or use a PayPal credit card to purchase items at select retail stores.

At this time, Home Depot is the only merchant that has publicly announced it is using the system. The big-box retailer first began experimenting with the system late last year, allowing PayPal employees to purchase things at the store. Recently, the PayPal in-store payment options were rolled out to all paying customers with a PayPal account.

The jabs over payments security comes as many companies — from Visa to PayPal to Google — scramble to innovate in the mobile and Web payments space.

Visa recently unveiled more details about V.me, its upcoming “digital wallet” that uses a PayPal-and-Amazon-like payment system. Consumers will carry a balance in the digital wallet, using a variety of sources — a Visa, MasterCard or bank account — and it will enable them to check out using just a user name and password, rather than having to enter credit card information. American Express is doing this, as well.

But, as an analyst points out, PayPal is probably going to cause headaches for traditional credit card companies by undercutting fees that merchants currently pay to accept the traditional networks’ cards.

And PayPal pretty much confirmed that in its statement: “As PayPal delivers point-of-sale innovation, we intend to offer competitive pricing to merchants at greater value compared to the existing legacy providers and potential PayPal imitators.”

I would tell you that no one in our industry is doing more to improve working conditions than Apple. We are constantly auditing facilities, going deep into the supply chain, looking for problems, finding problems, and fixing problems. And we report everything, because we believe that transparency is so very important in this area.

– Apple CEO Tim Cook, at Tuesday’s Goldman Sachs conference

Apple is on a tear after a monster quarter, the best in its 35-year history, and many believe it’s headed into one of its strongest product cycles ever, a stretch that will see a next-generation iPad in March, and a new iPhone and long-rumored Apple Television before the end of the year.

But it was a more troubling topic that he wanted to address first: Concerns about working conditions at its suppliers.

“The first thing that I want everyone to know — Apple takes working conditions very, very seriously,” he said. “And we have for a very long time. We care about every worker. I’ve spent a lot of time in factories personally and not just as an executive. I worked at a paper mill in Alabama and an aluminum plant in Virginia. So we are closely connected to the production process and we understand these manufacturing issues on a very granular level. We believe that every worker has a right to a fair and safe work environment … and Apple’s manufacturing partners must live up to this to do business with us.”

“No one in our industry is doing more to improve working conditions than Apple,” he continued. “We are constantly auditing facilities, going deep into the supply chain, looking for problems, finding problems, and more importantly fixing them. And we report everything because we believe that transparency is so very important in this area. I am so incredibly proud of the work our teams are doing in this area. They focus on the most difficult problems, and they stay with them until they fix them. They are truly a model for the industry.

“We think that the use of underage labor is abhorrent — it’s extremely rare in our supply chain, but our top priority is to eliminate it. If we find a supplier that intentionally hires underage labor, that’s a firing offense.”

“As you may have read,” Cook said, “the Fair Labor Association is doing an audit of our manufacturing partners. This audit is the most detailed in history of mass manufacturing in scale, scope and transparency, and I am looking forward to the results.”

Okay, okay, we get it: Morgan Stanley got the coveted left-hand lead position on Facebook’s blockbuster IPO filing. Goldman Sachs is there, too, but in the third-place, always-a-bridesmaid spo,t and is crying big salty tears about the injustice of it all.

It’s hard to feel badly for overpaid investment bankers, and focusing on them is kind of like endlessly discussing the lawyers who processed your mortgage, when the focus should be on the house you’re buying.

Does anyone except a few Richie Rich ZIP Codes in Manhattan care about this one deet of the initial public offering of the social networking giant?

Nope, but there is so little real news ahead of the IPO filing expected today that this is what we are chomping on this morning, as everyone awaits the big doc drop at the Securities and Exchange Commission.

Sources said it is likely to come this afternoon rather than this morning, though. And, perish the thought, all that dotting of I’s and crossing of T’s could delay it to tomorrow, even (unlikely, but mebbe!).

Sigh.

Tidbit: Facebook was actually founded the first Wednesday in February of 2004 in an undergraduate dorm room at Harvard University, like today but eight years later.

Thus, here’s a boring Facebook history timeline chart to look at:

Okay, that was really dull.

What up? The board met, the spinmeisters are at the ready and, most of all, Silicon Valley is stoked to make some more arrogant badillionaires.

Now, hopefully, we’ll get the real news about Facebook.

Namely, who’s getting the big dough in this much-anticipated Web 2.0 gambit? Co-founder and CEO and Hoodie Commander Mark Zuckerberg fer sure, but who else?

Plus all the juicy financials from Facebook, along with stats in usage, growth and just how much the company sticks it to its gaming serf — oops, partner — Zynga and others for the privilege of being on its all-powerful platform.

Me? I pay nada, like other Facebook users, for being able to show off pictures of my vacations and decline friendships from PR people I like, but still … well, you know.

Here is another Facebook financial chart that will not knock your socks off unless you are an accountant:

I am now so comatose waiting for the show to begin that I briefly began a liveblog of my activities this morning.

It went like this:

4:45 am PT: Done with AOL Q4 earnings, which were meh, but better meh than expected. AOL, if you recall, used to be Facebook and now is, um, not.

Note to Zuckerberg: Be nice to people on your way up, since you’ll meet them again on the way down.

4:46 am PT: I check the SEC site and get zip. Click, click, clickety-click over to find out the latest on Demi Moore and her fake-pot debacle.

Who knew there was synthetic cannabis and it is called K2 or Spice? Not me! According to Wikipedia: “It seems likely that synthetic cannabis can precipitate psychosis and in some cases it is prolonged.”

I decide to blame Ashton Kutcher and then wonder if he is an investor in Facebook via BFF-to-errant-celebrities-who-like-tech Ron Conway, also a Facebook investor.

Note to self: Call Ashton! That dude plays village idiots all the time, but I am not fooled by Mr. Pretty Face.

4:47 am PT: I consider email bombing Yahoo’s Jerry Yang, who is probably not so busy right now, and asking him what he thinks about the Demi Moore crisis and also Facebook’s IPO.

Remember when Yahoo was king of Silicon Valley and Yang posed in that purple VW on the cover of that magazine? Better still, remember when Yahoo was going to buy Facebook for just over $1 billion and then borked it?

Just sayin’, Mark — so, keep it reals!

4:48 am PT: I consider going out for doughnuts — and not because of any real weed need. I just would like me some glazed and sprinkled sugar treats right about now. Then, I could post the pictures of them on my Facebook page.

Sweet.

But you-know-who would file right when I left the house on the munchie run. Click, click, clickety-click over to the SEC site and I come up peanuts.

Time to check in on the Kardashians.

You get the idea — so, Facebook IPO, take me away!

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According to multiple sources, the long-anticipated public offering of Facebook is now likely to come in the second or third week of May.

That means that the company must file its IPO documents within the next month, given that the review by the Securities and Exchange Commission usually takes about three to four months.

That’s if there are no issues, of course, such as a turbulent market or thornier-than-usual questions from regulators that require amending the filing.

Groupon, for example, filed for its IPO in early June, but did not go public until five months later in November.

The usual caveat on the late-May timing (even though I called 143 people on this one): This IPO planning could all change, in a New York minute, to another month.

In any case, the Facebook IPO is expected to be one of the largest Web offerings ever — with some reports saying the company will be raising $10 billion on a $100 billion valuation. (The valuation and raise, sources tell me, will be much lower.)

That amount is presumably to match its huge consumer growth and revenue explosion. Users now number 800 million — a figure that is likely to hit one billion this year. And revenue, which was reportedly close to $4 billion in 2011, is expected to be higher by another third in 2012.

Facebook will need such oomph if it is to impress investors, although the social networking site’s leadership is still warning that its focus is products over dollars.

In an interview with The Wall Street Journal last week, for example, co-founder and CEO Mark Zuckerberg hedged the point, even as he sang his same familiar strategic tune of the last few years.

“The thing to take away isn’t that we don’t care [about business]. People for years were asking me why aren’t we trying to make more money,” he said. “I would say I’m trying to build a business for the long term and it was clearly the right strategy.”

While admirably I’ll-row-my-way in tone, Zuckerberg needs a public offering heft more than ever, as Facebook’s battles with rivals — most especially Google — escalate.

Just last week, the monocratically-inclined search giant ham-handedly shoved its own social networking service, Google+, into its results, in a move that could severely disadvantage Facebook.

Thus, into the Wall Street breach, to get a giant pile of dough to fight back!

But, unlike Google’s more kookified 2004 IPO, sources said Facebook’s is probably going to hew to a more traditional offering script.

That is likely to include a hefty consortium of irksome investment bankers — think firms like Goldman Sachs and Morgan Stanley on top of the filings, and a spate of smaller ones (Allen & Co.) below, and you have the approximately accurate idea.

And, while shot-caller-in-chief Zuckerberg will be the one key voice in the IPO, the man to watch has been and will be CFO David Ebersman.

The longtime Genentech exec, who came to Facebook in 2009, has been doing all the heavy lifting in preparation for the IPO, said sources, and will continue to do so.

Facebook declined to comment (but I would too, if I were them).

Shares in the company rose some 5 percent Thursday on market chatter that it’s looking for buyers. The latest story making the rounds: RIM has hired Goldman Sachs to explore strategic options.

Is there any more truth to this rumor than the ones that preceded it? It’s certainly possible, though, as we’ve said before, RIM’s not a takeover target if no one wants it.

“There are several roadblocks that make an acquisition of RIM unlikely,” Morningstar analyst Michael Holt recently wrote. “We believe RIM should entertain all options at this point, given the serious challenges facing the firm, but there is little evidence to suggest RIM’s board is open to offers at this point in time.”

(Image courtesy of The Joy of Tech)

It’s 2012 and it’s time for a brand news obsession for me besides the mishegas of Yahoo — and the winner is: Facebook’s upcoming IPO.

Thus, I shall endeavor to scoop all deets great and small about the social networking site’s moving on up to a deluxe public company in the Wall Street sky, which is expected in the spring of this year.

From bankers battling for purchase to who’s selling what to the delightful back and forth with regulators to Google’s lobbing the inevitable screaming meanies at its rival during Facebook’s quiet period, this is going to be a good one.

And CEO and Co-founder Mark Zuckerberg — and his hoodie — are back in the brightest of spotlights!

Speaking of the need for PR, one of the unsung but critical parts of any company’s public offering process is the hiring of an outside communications firm to handle the deluge of media, rumors and other breathless attention Facebook is sure to get.

It’s a highly specific job, given the reporters a company will be dealing with — in this case, sharp-elbowed Wall Street reporters — are usually different than the ones the Silicon Valley start-up has mostly dealt with (the geeks!).

And the expected winner of that thankless job is likely to go to the Brunswick Group, which describes itself as an “international corporate communications partnership that helps businesses and other organizations address critical communications challenges.”

In other words: Will be putting out the endless wildfires sure to rage around tech’s hottest IPO since Google.

Brunswick is among a small group of high-powered strategic communications firms that compete for such high-profile IPO jobs, as well as mergers and acquisitions and other corporate battling.

Others include Sard Verbinnen & Co. (it has worked for Groupon board and Alibaba Group); Joele Frank, Wilkinson Brimmer Katcher (it has toiled for Hewlett-Packard) and Kekst and Company (now cat-wrangling the Yahoo drama).

It’s probably not a surprise that Brunswick won the deal, since it has worked with Facebook in the past, including on its controversial private offering with Goldman Sachs a year ago.

No surprise, everyone declined comment.

Thus, let the Hunger, oops, PR games begin!

But that could be a problem.

The device sells for about the same amount ($199) as it costs to make (about $202).

Amazon’s stock fell as much as 4 percent this morning after Goldman Sachs suggested that the Seattle-based company could miss analysts’ sales estimates for the current period.

The stock has recovered some since early this morning, and is now trading down 1.6 percent, or $2.74, at $171.15.

According to Bloomberg, Goldman analyst Heather Bellini said in a note today that Amazon’s sales may grow 38 percent from a year earlier, to $17.9 billion, which is less than analysts’ average estimate of $18.2 billion.

Bellini based her analysis on a comScore report that found online shopping increased 15 percent this year, compared to last year’s holiday season. Since Amazon is the largest e-commerce provider, she reasons that it would be difficult to outperform the average by a wide margin.

“While the comScore numbers are just one data point which does not capture international sales or breakout individual companies’ sales, taken alone they seem to suggest the potential for downside risk to consensus forecasts,” Bellini wrote.

Ultimately, strong sales of the Kindle Fire could help Amazon hit its sales estimates, since it is counting on the device to serve as a platform for the sale of more content. But in the short term, the Fire could hurt the company’s bottom line, a possibility Bellini did not address in her report.

In addition to comScore’s numbers not capturing international sales, its report also does not capture sales from mobile devices. Amazon said the Kindle Fire was the best-selling product on Amazon’s mobile Web site and across all of its mobile applications.

In all, Amazon said it sold more than one million Kindles a week in December.

Bellini reiterated a “neutral” rating and a price target of $190.

Aneel Bhusri

Allen is said to have advised Workday on its recent funding round, which closed in October. As exclusively reported by AllThingsD at the time, Workday raised $85 million at an implied valuation of $2 billion. The Series F was led by T. Rowe Price, Morgan Stanley Investment Management, Janus and Bezos Expeditions, the personal investment entity of Amazon CEO and founder Jeff Bezos. Bloomberg also says that Michael Dell’s personal investment vehicle, MSD ventures, was in on that funding round, which grew to $100 million since the closing.

Previous investors include Dave Duffield and Greylock Partners, who are in for $90 million across four rounds; and New Enterprise Associates, which joined a $75 million Series E round in 2009.

Apparently encouraged by the successful IPO of Jive Software earlier this month, and the performance of its shares, which are up nicely since the debut, Workday now appears poised go through with the IPO that CEO Aneel Bhusri (pictured) hinted in October would take place during the second half of 2012.

And there’s no question that Workday is in a hot space. SAP’s $3.4 billion acquisition of SuccessFactors last month, plus Salesforce.com’s deal for Rypple last week, attest to the urgency with which larger companies want to be in the HR software business.

Think about it: Every company — of any size — needs to keep track of its people, their salaries, performance-review information and so on. And why bother with software that runs on the local machines, when the cloud is so much more efficient?

Bhusri was a senior executive and co-chairman of PeopleSoft’s board, and was on hand for that company’s hostile takeover by Oracle. After losing that battle, he and co-founder Dave Duffield concluded that the next battlefield for enterprise software would be in the cloud.

Workday’s average customer has between 10,000 and 15,000 employees. Among its 250-odd customers, the biggest is Flextronics, the huge electronics manufacturing company, which has 200,000 employees. Others include Time Warner, Thomson Reuters, Chiquita Brands and, perhaps unsurprisingly, Salesforce.com. Workday has some two million employees in its system.

And while there’s no S-1 filing with the US Securities and Exchange Commission to peruse yet, the IPO watch on Workday officially begins now.

Whatever you want to call him or her — a silver bullet, the cure or, as I like to say, the last unicorn — Yahoo’s ever-seeking and never-deciding board has now renewed its focus on finding a new CEO.

Also on the docket: Working on a deal to sell back at least some of its stake in its twin Asian assets — Yahoo Japan and the Alibaba Group — back to the companies. A partial sale of stock back could placate the often tense situation among the partners.

What is clear is that the two bids from private equity firms are now in an undetermined circling pattern — due to a variety of concerns around shareholder unrest (Occupy Yahoo looms for 2012).

Therefore, the idea of bringing in said fantasy leader to perhaps finally be the one to revive the long-troubled company has returned to the forefront of action, according to numerous sources both inside and outside the company.

The concept in short, said people familiar with the situation: Hire some compelling and entrepreneurial CEO to get the company moving again from a product point of view, do a massive organizational overhaul and help settle Yahoo’s thorny Asian issues.

While a number of names have been rumored in reports — such as Google business lead Nikesh Arora, who is actually not likely to leave his top post at the search giant — sources said the board has been targeting a number of candidates, including Hulu CEO Jason Kilar.

Others on Yahoo’s wish list include Juniper CEO Kevin Johnson and online advertising entrepreneur Brian McAndrews, who sold aQuantive to Microsoft. There are several others also being considered.

Sources said Kilar has met with Yahoo board members about the offer, but his hiring would be a long shot.

It’s an interesting — if complex — gambit to bring in Kilar, who has had his own wrangles with the multi-owner structure of the premium video service over the years.

Kilar’s status at Hulu has been in question ever since it was put on the block, then removed and then — well — who knows.

Hulu’s owners — News Corp., Disney and Providence Equity Partners, along with Comcast (which is a now a passive investor) — did not like the offers it got from various bidders, including Yahoo.

While the media giants have made noises about wanting to keep a stake in distribution, their commitment to that remains unclear.

The situation has put Kilar — who already had tense relations with the service’s shareholders — in limbo until a valuation is determined next year. Without going into the complex details, Kilar has a large equity stake that could be liquid in April, related to certain rights held by Providence.

It is well known that Kilar has been concerned the team that built Hulu gets some sort of payout for their work. In fact, many years ago, Hulu was seen as a possible IPO candidate.

What’s not in question is Kilar’s talent at creating a cohesive team and a compelling product — especially with an advertising and media focus — and the need at Yahoo for a vibrant leader to encourage innovation and discourage its rapidly increasing attrition issues.

The search for a new Yahoo CEO — which is being led by director Patti Hart, and is being conducted by Heidrick & Struggles — had been mostly sidelined until recently, as the board solicited bids for a partial investment from PE firms.

Two emerged, from Silver Lake and TPG Capital, which had wanted to pay from $16.50 to $18 a share for a stake of just under 20 percent in what is called a PIPE (Private Investment in Public Equity) arrangement.

But the low price, and worries about lawsuits and even a proxy fight related to such a deal, have slowed down the momentum significantly, said sources.

Instead, Yahoo has told bidders it will get back to them in the coming weeks about the direction it will take. Thus, the focus on lining up CEO candidates and plans related to reviving Yahoo.

Some of those possible execs have put their hand up, while others — like Kilar — are being solicited. In addition, some still think that Yahoo board member David Kenny remains an internal option, especially if the board of Yahoo gets a refresh, despite his recent announcement that he has no intention of seeking the job.

In general, this shift should not come has a surprise for the hurry-up-and-wait board of Yahoo, which has struggled over the years to make good choices for the Silicon Valley Internet giant.

That drift has resulted in a downturn in its prospects, even as other companies have surged.

Those troubles were brought into sharp focus in a recent report by new Goldman Sachs Internet analyst Heath Terry, who strafed Yahoo in his “sell” recommendation.

Among the gems by an analyst whose investment bank is currently an advisor to Yahoo on its strategic options:

Yahoo simply faces too many competitive and structural headwinds to believe any kind of meaningful turnaround is possible. While there is significant asset value on the balance sheet and in the company’s large, though increasingly less engaged user base, we continue to believe, as we have since before the first Microsoft offer, that the segment of management driving the company is intent on trying to revive Yahoo as a company, regardless of the cost to shareholders.

And, noting the need for a new CEO:

We would become more positive if we felt there was a likely event in the near term that might unlock the value of the balance sheet assets at Yahoo. While we believe the aggregate value of those assets is above the value reflected in YHOO, in order to be more positive on the stock we would need some proof that management is willing and able to take the steps necessary to unlock that value either through a sale or distribution to shareholders. Meanwhile, the declining profitability of the core display advertising business is masked by a search business that continues to lose share and relies on artificial support from Microsoft. We would become more positive on the core Yahoo business if the company is able to find a new CEO capable of focusing the business on its core advertising and communications opportunities, rationalizing costs, and driving growth. This would require user growth and especially engagement improvements in both online and mobile, improving monetization of advertising inventory, and stabilizing its search business.

In other words: Wanted, one unicorn to work magic against increasingly troublesome dragons. Ability to sparkle a plus.

Goldman Sachs expects Amazon to sell six million Fires by the end of the year. And it figures the Kindle creator will sell between 15.5 million and 20.5 million during the tablet’s first full year of availability.

Surprising? Goldman says it shouldn’t be. Such rapid adoption proves the Fire has found another sweet spot in the tablet market.

“With the ability to consume all forms of media, at a price of $199, Amazon’s Kindle Fire has provided a legitimate tablet device to a crowd that is more price conscious versus the significantly more expensive iPad or couldn’t justify the spend as they already owned a laptop and a smartphone,” analyst Heather Bellini writes. “Further, the price point, in our belief, is below the threshold to be thought of as a major purchase and is suitable for gifts.”

One last point worth noting: If Amazon does manage to sell six million Fires before the end of the year, it will surpass the iPad’s domestic sales in its first December quarter in 2010.

The anecdote appears in a new profile of Dropbox in the latest issue of Forbes, which also disclosed that the service is on track to hit $240 million in sales this year, even though the vast majority of its users pay nothing to use it.

But the meat of the story comes further in: Dropbox just closed a massive $250 million Series B round of funding, at an implied valuation of $4 billion, from Benchmark Capital, Goldman Sachs, Greylock Partners, Institutional Venture Partners, RIT Capital Partners and Valiant Capital Partners. Early investors Sequoia Capital, Accel Partners, and Hadi and Ali Partovi also participated in the round, bringing Dropbox’s total funding to date to $257.2 million. Houston’s stake, Forbes says, amounts to 15 percent of the equity, which would be worth about $600 million.

Houston may yet live to regret turning Jobs down. The Apple CEO proposed another meeting that never happened, then managed to single out Dropbox for disparagement as part of his iCloud keynote in June. That got the attention of Houston, who quickly fired off a memo to his team that included a list of once-hot companies that later crashed: MySpace, Netscape, Palm and Yahoo. Apple — which once viewed Dropbox as the sort of “strategic asset” for which it keeps its $70 billion war chest stuffed — is now the competition.

In a research note to clients today, Goldman said that while most tech companies should report results in line with their forecasts, the forward guidance they give will be less than optimistic. “While we expect most of the September quarter companies to be able to meet expectations for the quarter, we also expect an increasingly cautious tone from all of the companies, and we continue to see risk to 2012 consensus estimates for nearly all of the names in our space.”

To that end, Goldman revised its PC unit sales forecast downward. Following the latest PC market data from the research firm IDC, Goldman says the demand environment for PCs is “even more difficult than we had previously envisioned.”

Slower spending, the end of a PC refresh cycle and cannibalization by the tablet market — which we all know is really just an iPad market — has prompted Goldman to slash its PC unit sales growth forecast to 2.1 percent for 2011; 4.3 percent in 2012; and 6.9 percent in 2013. The iPad 3, already said to be in production and expected early next year, won’t give the PC makers any help.

One key problem PC makers face is pricing: In order to avoid being stuck with unsold inventory, manufacturers, resellers and retailers will be forced to slash their prices to the bone and then some, which will hurt their already-thin profit margins. This is why Goldman rates Dell — now the No. 3 PC maker, behind Hewlett-Packard and Lenovo — a “sell” right now. Goldman expects the average selling price on PCs to drop nearly 3 percent in 2011, and more than 9 percent in 2012.

The exception to its tech pessimism? Apple, naturally. Reporting its results on Oct. 18, Apple isn’t suffering from the economic headwinds. Goldman expects Apple to sell 13 million iPads in the quarter, which would represent growth of 211 percent year over year.

Goldman expects Apple to report earnings of $7.30 per share on $28.7 billion in sales, but admits that could be conservative, because who knows how good today’s launch of the iPhone 4S will turn out? As Goldman puts it: “Indeed, if iPhone units are flat sequentially, this would support earnings per share of approximately $8.00 for the quarter.”