The bank’s challenge, the morning of our IPO, would be to figure out the ideal number to use as the opening price for individual shares. Set the price too high, and interested purchasers would drop out—and we would miss our $70 million target. Set it too low, and Netflix would leave millions on the table. Another complicating factor? Given the choice, the bank didn’t really mind a price that was too low. Part of the reason they’d fought so hard for a deal with us—above and beyond the big commission—was the opportunity to give their best customers an opportunity to buy low at the opening and
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