Facebook to File for IPO Next Week
mashable.com
Facebook to File for IPO Next Week
1–10 of 145 posts
Re: Facebook to File for IPO Next Week
#2Just out of curiosity, why is Facebook doing this? I'm unfortunately not very knowledgeable on the field of IPOs, but aren't IPOs usually just needed to raise money? I always thought Facebook is in a position where it does not need to raise money, since it gets sufficient revenue, and being public has its own disadvantages?
Re: Facebook to File for IPO Next Week
#3Just out of curiosity, why is Facebook doing this? I'm unfortunately not very knowledgeable on the field of IPOs, but aren't IPOs usually just needed to raise money? I always thought Facebook is in a position where it does not need to raise money, since it gets sufficient revenue, and being public has its own disadvantages?
I'm no expert, but I believe that by issuing common stock traded in a public exchange, employees and current common stock holders will be more easily able to sell their stocks, thereby making these people more liquid.
It could have advantages in hiring, where now, people can actually realize the value by selling their options/stock.
Re: Facebook to File for IPO Next Week
#4Just out of curiosity, why is Facebook doing this? I'm unfortunately not very knowledgeable on the field of IPOs, but aren't IPOs usually just needed to raise money? I always thought Facebook is in a position where it does not need to raise money, since it gets sufficient revenue, and being public has its own disadvantages?
The founders and everyone else with current equity in Facebook need a liquidity event. They are all collectively sitting on $100 Billion worth of value but right now the only way for them to see anything from that value is to collect their share of the profits (if Facebook is even distributing profits as opposed to rolling them into future growth spending). The IPO gives them a chance to actually collect some cash for the value of their shares and live like the millionaires their tax returns say they should be.
Re: Facebook to File for IPO Next Week
#5Just out of curiosity, why is Facebook doing this? I'm unfortunately not very knowledgeable on the field of IPOs, but aren't IPOs usually just needed to raise money? I always thought Facebook is in a position where it does not need to raise money, since it gets sufficient revenue, and being public has its own disadvantages?
The founders and everyone else with current equity in Facebook need a liquidity event. They are all collectively sitting on $100 Billion worth of value but right now the only way for them to see anything from that value is to collect their share of the profits (if Facebook is even distributing profits as opposed to rolling them into future growth spending). The IPO gives them a chance to actually collect some cash fo…
How is this true anymore with secondary markets? Surely the founders and first employees are all rich by now.
Re: Facebook to File for IPO Next Week
#6Just out of curiosity, why is Facebook doing this? I'm unfortunately not very knowledgeable on the field of IPOs, but aren't IPOs usually just needed to raise money? I always thought Facebook is in a position where it does not need to raise money, since it gets sufficient revenue, and being public has its own disadvantages?
The SEC requires private companies that have more than 500 shareholders to file basically the same paperwork/disclosures that a public company has to. FB is probably nearing (or over) the 500 shareholder limit.
Since they are going to go through most of the downside involved with an IPO anyways, they might as well get some cash too.
Plus, share/option holders (employees, investors, etc) are probably clamoring for liquidity. It's great if you own a hundred million dollars of FB stock on paper - but it's even better if you have the option to sell and diversify your holdings.
Re: Facebook to File for IPO Next Week
#7Just out of curiosity, why is Facebook doing this? I'm unfortunately not very knowledgeable on the field of IPOs, but aren't IPOs usually just needed to raise money? I always thought Facebook is in a position where it does not need to raise money, since it gets sufficient revenue, and being public has its own disadvantages?
The founders and everyone else with current equity in Facebook need a liquidity event. They are all collectively sitting on $100 Billion worth of value but right now the only way for them to see anything from that value is to collect their share of the profits (if Facebook is even distributing profits as opposed to rolling them into future growth spending). The IPO gives them a chance to actually collect some cash fo…
My understanding is that the IPO is because of the 500 shareholder rule:
http://dealbook.nytimes.com/2011/01/03/facebook-and-the-500-...
Re: Facebook to File for IPO Next Week
#8What would the world look like if Facebook IPOs and Apple immediately buys them out with their horde of cash?
Re: Facebook to File for IPO Next Week
#9What would the world look like if Facebook IPOs and Apple immediately buys them out with their horde of cash?
Considering CNBC on the TV near my desk just said Facebook is going to be valued between $75 billion and $100 billion, I would say Apple is not going to make that acquisition.
Re: Facebook to File for IPO Next Week
#10What would the world look like if Facebook IPOs and Apple immediately buys them out with their horde of cash?
Typically, the number of shares available on the public market at IPO time won't give anyone a controlling share- even if they bought all of the available shares.