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The Mesa Press

The Mesa Press

The independent student news site of San Diego Mesa College.

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The Mesa Press

The Mesa Press

Facebook IPO is of greed not need

In February 2004, Mark Zuckerberg and his fellow roommates launched what is now the most recognizable website since Google. In a little under a decade, Facebook has connected millions of people around the world and given them the ability to share their lives with one another; and in recent months, has given the ability to stalk one another more efficiently.

Over the years since its launch, Facebook made its money with advertisements, as most websites do. But what set it apart from other companies of that stature, was that it was a privately held company. Emphasis on the “was.”

That’s right; it was a publicly held company. February 1, marked the day when Facebook CEO Mark Zuckerberg did what most people would do with a few billion dollars in reaching distance. He sold it. The site filed for Initial Public Offering (IPO) and is likely to be the largest technology IPO in U.S. history at about $5 billion.

Let’s face it, going public has a way of always changing a company.  In the coming months, likely nothing will change outside of what profile they want you to have next.  In the coming years though, pending the events of Dec. 21, what’s likely to change is majority ownership. As of now, Zuckerberg owns the majority at 24 percent with the rest being split amongst initial investors and employees.

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If majority ownership changes, which if history has taught us anything, it will, the overall goal of Facebook would be to put more money in the pockets of the shareholders. It could be leaving the decision making to people who know nothing about the internet let alone the website. There is even a potential that if it becomes too big for comprehension, Mark could be forced to resign by his future board of directors.

Now personally I respect anybody who keeps their company private, much like In-n-Out who hasn’t gone public like most of the fast food industry. Facebook, which is estimated to value $100 billion in the future, is on the verge of becoming bigger than anybody could have imagined. With billions of dollars at hand and over 800 million users, they could venture into anything they want. And as long as you have a profile and click that yes button on the terms and agreements, they can do anything.

This all assuming Facebook continues to grow. Going means you have to deal with Wall Street. Wall Street wants you to grow. When growth slows, the demand growth could hurt its users and the stock value will diminish.

But hey, this move values Mark Zuckerberg at potentially over $28 Billion, not bad for a college dropout.

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