Posted by Pedro on May 17, 2012
There’s been a lot of hype building as we approach the Facebook IPO, and many users are asking, What does this mean for me?
Well, it means quite a bit. First off, Money, Money, money.
It’s been quite some time since Zuckerberg founded Facebook from his dorm room in Harvard, and the days of worrying about costs and recruiting angel investors are long behind them. However, rasing $15 billion dollars in cash through the public IPO and possibly raising the value of facebook to $75 billion dollars takes the company to an entirely new level. This will likely give Facebook the means to make even more purchases and acquisitions of startups with great ideas in both the social and mobile spheres – just as we saw with Facebook’s higly contested billion dollar aquisition of Instagram.
Facebook will be under an immense amount of pressure to legitimize expensive purchases like this, and prove to investors that they can grow revenue sources and minimize impulsive spends that do not grow the bottom line. It is likely that this need to grow revenue streams, while it’s advertising sources & membership growth slows will lead Facebook to experiment in a number of new products and spaces they do not currently compete. Investors will start to call for it’s “next big hit” and the Social Network will be pressured to release radical new products that will continue to grow it’s bottom line.
It’s also expected that Facebook will be diving deeper into online advertising through search, by (hopefully!) integrating a full-fledged search engine into Facebook (maybe then, we could actually find what we are looking for) or even launching a direct challenger to google search.
There should be a lot of change, a lot of new innovation, and a lot of opportunities for Facebook to take big risks but the fact that still remains is, Mark Zuckerberg is still the driving force behind Facebook’s evolution. He may only own 28% of Facebook stock, but retains 57% of voting power enabling him to make unilateral decisions for the good – or bad – of the network.
If you want to place a bet on Zuckerberg’s continued success, buy into the company your self by purchasing stocks yourself at sites like GiveAShare.com and OneShare.com which allow you to purchase single shares of Facebook Stock.
“It interests people who are not ordinarily interested in the stock market,” says Rick Roman, the founder of GiveAShare.com. “We’ve been getting people asking about it for a year.”
You can read more about how Facebook stack’s up against other tech titans here, or Zuckerburg’s announcement of the IPO to the Facebook Community here.
What are you most excited (or worried) about with Facebook’s IPO on schedule for this friday?