Mark Zuckerberg has been reluctant to go public with Facebook. Insiders say he is fearful of the potential harm an IPO could do to what he perceives as the social network's culture. Apparently, he wants the company to focus on product quality rather than stock price. But under pressure from other factors, Mr Zuckerberg has decided that going public is the answer.
Facebook executives realized in 2010 that the company would have more than 500 shareholders by 2012 and would therefore be legally required to make financial information public. Due to this, Mr Zuckerberg decided that it would make more sense to go public and reap some of the financial rewards of an IPO, than it would to stay private and have to report financial information.
While Facebook's revenue is drawn from its advertising business, it isn't even known if the company is actually profitable. Nonetheless, Facebook could file documents with the Securities and Exchange Commission as early as Wednesday of next week. Others say the company is considering filing in April or June. With a $10 billion Facebook offering, it would rank as the biggest US internet company offering ever with Google's $1.9 billion offering in 2004 coming in second.
No comments:
Post a Comment