Facebook is asking the market if it likes the company, to the tunes of 100 Billion US Dollars.
Initial Public Offering for Facebook, is buzzing. What does the IPO mean for the social media giant?
Since the founding of Facebook in 2004, CEO Mark Zuckerberg had held on to its vision. But with many reports and speculations regarding Facebook going public, Facebook still had the door closed for IPO until recently. But now COO Sheryl Sandberg had said that the IPO is inevitable.
This issue has been discussed for some time, there are still people who asked the question, “Why go public?” From the Securities Exchange Act of 1934, rule 12g5-1(b)(3) which requires companies with more than $10 million in assets and 499 shareholders to register as public companies.
Companies also benefits to this rule. To start with, going public increases cash to the company and since it is public, it has greater financial opportunity. As long as the market demand is high, a public company can issue more stocks. Now the next question is when will it be the day? According to CNBC, the IPO will be held in the first quarter of 2012, that falls on the deadline for the Facebook publicly reporting its financial information, regardless of whether it’s a private or public company.
