Last week, Facebook and current CEO and creator Mark Zuckerberg made it official along with the SEC to have Facebook stocks be sold to the public. Though this maybe the most anticipated IPO (initial public offering) in the history of the stock market, there is a lot of speculation of how this will affect Facebook. The stocks will most likely not be available to the public until May, but the $5 billion has been raised to allow Facebook to put their stocks up for purchasing.
Facebook already has huge popularity and has been one of the most successful businesses of the 21st century, so why the change? Mark Zuckerberg answers that question with this:
“There is a huge need and a huge opportunity to get everyone in the world connected, to give everyone a voice and to help transform society for the future,” said Mark Zuckerberg, Facebook’s CEO, in a letter that accompanied the filing. “The scale of the technology and infrastructure that must be built is unprecedented, and we believe this is the most important problem we can focus on.”
Facebook already has 800 million users across the world (that is about 1/7 of the world’s population) and Zuckerberg wants to expand even more! The big issue with Facebook going public will be that advertising is going to be the main money maker for Facebook now. That means Facebook is going to have a more YouTube-ish look to it. This may not seem like a problem to us here in the US, but that is because most users of Facebook in America have personal computers, laptops or tablets; but, across the world the majority of users have mobile devices and advertising on mobile devices is much harder to accomplish and still have that social media effectiveness of Facebook that they have always had.
With that said, I personally see this as a very mature move for Facebook to go public. It is the right move for them, but it might have happened a little too late with the current stock market. Time will only tell how effective this move will be for the current leader of the Social Media Market.