It is being reported widely that it is only a matter of time before Facebook will go public. The latest news coming about is that Facebook will raise $10 billion before its IPO to raise its valuation to $100 billion. If true, making it one of the largest IPO’s on record. This is all well and good for a company that has been ultra successful in the private sector. There is also no doubt that there is serious hope attached to the IPO of social media’s giant. The stock market has been praying for the major players in the social media market to go public, and slowly one by one LinkedIn, Zynga, and others have gone public. Meanwhile, everyone waits for the day Facebook will cross, with the hope of a stock market rally.
All of this anticipation for Facebook’s IPO is great and lord knows if the market can rally behind it, then we will all be the better. But I can’t help of think about one question. Why would Facebook want to go public? Naturally, a person’s response will be to make more money, that you can only have so many shareholders privately, that the SEC frowns on becoming too large privately. Some will say to get theirs before their competitors like Twitter or Google+ do. Those answers, while good, just do not seem to be sufficient for me.
Mark Zuckerberg has everything where he wants it. He has control of his company, he is accountable to no one externally, and his company is profitable. So why would he want to open up his company? Share his books, to become accountable to the financial sector and his stock holders? To answer this question would be pure speculation on my part, but perhaps he just feels this is the natural progression for company.
What are your thoughts on Facebook going public? If you were in Mark Zuckerberg’s shoes, what would you do? Leave us a comment below, we would love to hear your thoughts.
image credit: V.JHON on flickr