Although Facebook originated in a college dorm of Harvard, it has expanded to employ 3,000 and serve an audience of more than 800 million people.
It has just been announced that Facebook is going through the process of filing for their IPO. What is an “IPO” you ask? It is an Initial Public Offering. In more common words, it is, “The first sale of stock by a private company to the public” This will give an opportunity for individuals, companies, etc. to buy stocks and invest into Facebook. Some seem to be quite excited about this news, “The IPO, seen as the ‘defining moment for the latest Web investing boom,’ could raise as much as US$ 10 billion, pegging the value of the company at between US$ 75 billion and US$ 100 billion. . . Facebook’s 10-billion-dollar IPO would rank it as the fourth biggest public offering in US history after Visa, General Motors and AT&T.”
This sounds like great news, but it makes me question if Facebook is a wise and stable thing to invest in in the first place. Already, IPO’s can be a risky. By taking a glance at history, it is evident how the popularity of social networks is never constant. For example, do you remember Xanga or even Myspace? Both use to be very popular, but are not so much now. Of course Xanga and/or Myspace never grew to be as popular as facebook, but it proves the point that things come and go. I bet Facebook is really working hard, working hard to keep the attention of users and never turn into the “old thing.”
Put your strategic brains on: Do you think Facebook would be a wise investment? If you worked for Facebook, how would you publicize that Facebook is a wise investment?
Read more about,
- Initial Public Offering: http://www.investopedia.com/terms/i/ipo.asp#ixzz1ktav9BTx
- Facebook filing for IPO: http://www.thestatesman.net/index.php?option=com_content&view=article&id=398223&catid=37