Is Facebook Going Public?
Facebook IS going public! The social media giant is reportedly filing the forms with the SEC this week. The information on that form will be the first insight into the inner workings of what has historically been a fairly opaque company. The S-1 form will list the internet powerhouses revenue and profits and is expected to list the company’s value between $75 and $100 billion.
This is being touted as the IPO event of the year by many in the financial world. Though it will likely take until May for the stock to begin trading on the exchange.
But why go public? Facebook Ceo Mark Zuckerberg reportedly decided to go public once it had become clear that the company had become too large to keep it’s finances private any longer. By making this next step and going public Facebook, the webs largest social media site, will lose some of it’s mystery. But that is not a concern for them.
In 2004 Google went public with a stock price of $84 which has risen to a market high $715 per share in 2007 and is now being traded at $580. That is a 30& compound annual growth. Facebook’s 3000 employees are poised to become the next batch of Silicon Valley millionaires and Billionaires.
What does this all mean? Well as social networking grows it will redefine the internet and in turn human relationships. It creates a new landscape for marketing teams and challenges the search giants like Google,Yahoo and Bing. Does this mean we will all make our livings playing FarmVille or redesigning new versions of it? Probably not, however we may well make millions by investing in companies that do.
Facebook investors have been selling their shares privately for years. Employees were recently barred from doing so and are likely to cash in big when trading goes public. Mark Zuckerberg has essentially been the CEO of an internet startup all these years. How will the company’s focus and direction change when they start having to answer to their stockholders? That is the $100 billion question at this point.
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